Facebook Inc (FB) Makes It Tough For Brands To Qualify For Video Ads

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Facebook Inc (NASDAQ:FB) is not making it easy for companies to run video ads on the social networking site. The first step towards approval is an invitation by Facebook Inc creative team for a company to showcase their ideas. These ideas will then be shown to the Facebook users, who will assign ratings based on how meaningful these ads are, according to a report from The Wall Street Journal. Even after this screening, an advertiser will still pay a hefty $1 million per day to showcase the ads.

Facebook Inc (FB) Makes It Tough For Brands To Qualify For Video Ads

Facebook making it tougher for advertisers

Yet another challenge for the advertisers is that the video will be played without sound. This is done to keep user experience unconstrained, but in the long run, Facebook Inc (NASDAQ:FB) may offend its advertisers.

“If I’m a brand and I’m going to write a check for $1 million, I want to control my advertising,” said Zachary Treuhaft, chief digital officer at advertising agency Grey. Treuhaft said that the Facebook terms and conditions for its video ads are unusual in the industry.

According to the sources with knowledge of Facebook development, the company plans massive video ads after years of planning and running tests. For the first time, in December, a 15 second teaser of ‘Divergent’ was shown on Facebook Inc (NASDAQ:FB), which was called a test by the company.

Video ad buyers evaluating options

According to ad agencies and media buyers there are at least 15 advertisers wanting to post video ads on Facebook. Though Facebook Inc (NASDAQ:FB) did not reveal their names, it is said that one-third are for films and TV shows.

Kris Magel, chief investment officer at Initiative, said that not every category of advertisers is eager to get video ad space on Facebook Inc (NASDAQ:FB). Video ads on Facebook stay relevant for those who want to hit maximum users on a given day such as a studio promoting a new movie or a retailer with a massive sale.

Although Facebook Inc (NASDAQ:FB) wants to make money with its video ads, it should be vigilant not to upset users by accepting too many ads. Furthermore, a number of creative agencies and media buyers want to take a deeper look on the effectiveness of the video ads before opting in.

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