Topeka Trading analyst Victor Anthony weighs in on Facebook Inc (NASDAQ:FB)’s latest ad wrinkle – premium video ads – and what kind of effect it will have on the company’s prospects.
Facebook Launching Premium Video Ads With Select Advertisers
Facebook Inc (NASDAQ:FB) announced the launch of Premium Video Ads today with a few select group of unnamed advertisers. According to Facebook, the videos will be 15-seconds each and will play without sound as it appears on the on screen and stop if users scroll past. When users tap the video, it will expand into a full-screen view and sound will start. Facebook stated that users will start seeing these ads over the next few months. Facebook plans to roll out Premium Video ads slowly in order to monitor the user experience with the ads. Auto-play video ads are a huge longterm opportunity for Facebook Inc (NASDAQ:FB) with potential revenues at full implementation reaching near $1 billion annually
Ads Purchased on a Targeted Gross Rating Point
Per the Facebook Inc (NASDAQ:FB) post, the ads will be purchased based on a “Targeted Gross Rating Point to reach a specific audience over a short period of time” and delivery will be measured by Nielsen Online Campaign Ratings (OCR). Advertisers will only pay based on what Nielsen OCR measures. Facebook Inc (NASDAQ:FB) will also be working Ace Metrix to access the quality of the ads before it appears on Facebook.