Facebook Inc (NASDAQ:FB)’s monetization opportunities are rapidly growing, and in-feed video ads provide a sizeable opportunity for the social network, according to Goldman Sachs analysts. In a report issued to investors this week, analysts Heather Bellini, Heath P. Terry, Brian Baytosh and Sonya Banerjee have reiterated their Buy rating on the stock and raised their price target from $46 to $52 per share.

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Valuing Facebook’s video ad opportunity

The analysts see video as “a significant opportunity,” both for Facebook and brand advertisers. They note that Facebook Inc (NASDAQ:FB) could deliver between 88 million and 100 million U.S. users to advertisers during prime time television hours. The high end of that range is especially interesting since the 2013 Super Bowl broadcast delivered 108 million viewers.

The Goldman Sachs analysts believe Facebook’s video ads provide “an attractive media channel for current TV advertisers, especially given the continuing fragmentation of TV audiences. They note that in terms of revenue, online video and TV advertising together will be about a $70 billion market in the U.S. next year.

Facebook to see high CPMs

The analysts said their contacts within the industry expect Facebook Inc (NASDAQ:FB) to see cost per impression in the $20 to $30 range, possibly topping off at $40. That compares to television, which ranges around $28 to $30.

They said every percentage point share of next year’s online video market represents about $40 million in revenue for Facebook, and each basis point share of next year’s TV ad market represents about $325 million in revenue for the social network.

The Goldman Sachs analysts remind investors that Facebook Inc (NASDAQ:FB) is on their Americas Buy List. They also said that the important risks to consider when deciding whether to buy shares of the company include the current macro environment, user fatigue, backlash from users because of the new ad formats and continuing privacy problems. Just last week the Federal Trade Commission said it would review the company’s latest changes to its privacy policies because it didn’t discuss the changes with the agency before making them.

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