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UPDATED: Will Facebook’s New Promoted Videos Haul in Hundred$ of Million$?

Written on
Dec 18, 2013 
Author
Mike Daly  |

ADOTAS – If you’re a Facebook user, you’ve likely noticed that videos recently posted by your friends in your News Feed tend to play automatically, without sound, as you scroll over them. And when you scroll past them, they stop. The video would only play with audio when you tapped on it. Cool feature, no?

As it turns out, the new video format was actually a test that served as a precursor to the soft launch of Promoted Videos, which The Social Network plans to roll out on Thursday, according to an official announcement. The first client to test the new video ad unit will be Summit Entertainment, to promote its new film, “Divergent.”

Sterne Agee analysts Arvind Bhatia and Brett Strauser wagered that Facebook could see a revenue boost of up to $800 million over the next three years from the new video ads, coupled with ads in Instagram which launched earlier this year, according to Business Insider.

“Facebook continues to exhibit deep insight with its launch of video ads,” said MassiveImpact CEO Sephi Shapira. “In similar detail oriented fashion with which app native ads where implemented, Facebook has nailed down three key features required to make video ads work. Ads will only be downloaded when clicked on, sound will only be activated on demand, full screen presentation is not default. Facebook continues pave the way setting the gold standard for user experience driven innovation.”

“Video ads in the News Feed are a natural progression for Facebook,” said Molly McCarty, Social Account Manager at 3Q Digital. “Currently Facebook allows video posts to be used as advertisements, so I imagine that the results we are seeing from those will somewhat mirror the results we see from the video ads. The main difference here, however, is that users will no longer have the option of not playing the video; it will run automatically (with no sound). Hopefully this will increase the click-through rate. In my experience, CTR for video posts on Facebook have been about 71% smaller than the CTR of regular posts.”

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Mike Daly is an award-winning writer and editor with 30 years of experience in publishing. He began his career in 1983 at The News of Paterson, N.J., a long-since defunct daily paper, where at age 22 he was promoted to the position of Editorial Page Editor. Since then he has served in managerial capacities with several news organizations, including Arts Weekly Inc. and North Jersey Media Group in New Jersey and Examiner Media in New York. His work has been honored on numerous occasions by the New Jersey Press Association and the Society for Professional Journalists.

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