The video ads are expected to be around 15 seconds long, using similar technology to the recently introduced video features from (Facebook owned) Instagram. The traditional TV model typically focuses on 30 second ads.
The proposals, as reported by Bloomberg, are likely to prove a huge moneymaker for Facebook. Bloomberg’s source suggests that the company are likely to charge upwards of €2 million for a day’s video advertising. Like current Facebook ads, they will likely be directed at specific demographics so users with different interests will see 'specialised' advertisements. Ads will not be repeated any more than three times a day.
Facebook co-founder and CEO Mark Zuckerberg is said to have taken a prominent role in the development of the ads, insisting that the ads are of a high technical quality and do not negatively impact users’ experiences on the site. The report suggests he intends to limit ads to one for every twenty Newsfeed stories or so. According to Zuckerberg, "one of the things I watch most closely is the quality of our ads and people’s sentiment around them”.
There has been much speculation about the methods Facebook will use to build on current revenue streams. Online advertising is often criticised as inefficient and ineffective. A recent survey by Greenlight, reported by Silicon Republic, found that 70% of Facebook users rarely, if ever, click on ads or sponsored links.
Biz Stone, one of Twitter’s founders, has suggested that a ‘premium’ model for Facebook could be a big earner for the company. By eliminating advertisements and offering subscribers some sort of extra features, Stone estimates that if even 10% of Facebook users opted-in to a €7.50 a month ad-free model, the social network could earn somewhere in the region of €9-10 billion a year.
Would autoplay or pop-up ads make you consider quitting Facebook? Do the proposals risk alienating Facebook's loyal users? Or do you feel it will have little impact, much like YouTube has continued to grow in popularity despite more aggressive advertising practices? Vote in our poll and leave your comments below.
