360° Coverage : Facebook testing video advertisements

2 Updates

Facebook testing video advertisements

Dec 19 2013, 5:24pm CST | by

Facebook testing video advertisements that would show up in its users' news feeds NEW YORK (AP) — Investors are giving a thumbs-up to the idea of Facebook making hundreds of millions...

Filed under: news

 
 
 

43 weeks ago

Facebook testing video advertisements

Dec 19 2013, 5:24pm CST | by

Facebook testing video advertisements that would show up in its users' news feeds

NEW YORK (AP) — Investors are giving a thumbs-up to the idea of Facebook making hundreds of millions in new revenue from video advertisements, but some users argue that the social network is already too cluttered and has become more about commercialism than communing with friends.

Facebook said Tuesday that it's testing video advertisements that show up in its users' news feeds. As part of the test, Facebook said some of its users on Thursday will see a series of videos teasing Summit Entertainment's upcoming release of "Divergent," a film based on a young adult novel with the same name, in their feeds.

The Menlo Park, Calif.-based company says the idea is still in the testing phase and that it's not currently selling video ads. The company wouldn't disclose pricing, but said its goal is for the test feature is to make it a premium advertising product that's used to reach large audiences at specific times.

Facebook's shares, which have posted substantial gains over the past four months, hit an all-time high of $55.18 on the news, before closing up $1.05, or 2 percent, at $54.86.

Citi analyst Mark May backed his "buy" rating for Facebook's stock on Tuesday, noting that the video advertising effort could add more than half a billion dollars to the company's revenue next year and up to $1 billion by 2016.

Advertising, in general, has already helped Facebook achieve enormous growth in recent years. The company's revenue grew from $3.71 billion in 2011 to $5.09 billion in 2012. Revenue was $5.29 billion through the first nine months of this year.

While an additional revenue boost would be good for Facebook's bottom line, the company needs to proceed with caution. People have grown accustomed to video ads online, but Facebook is seen as a place where users connect with friends and family and is often perceived as a more personal setting than other websites where video ads may not seem as intrusive.

Some users insist Facebook's intimate feel started disappearing long ago. They point to the combination of targeted advertisements that run along the right side of a user's news feed and what they see as increasingly inane posts from some of their "friends."

Jon Knott, a 22-year-old Facebook user from Chicago, says video ads could be the "final straw" for young adults like him, who are growing tired of Facebook's busy nature.

Knott says political rants and "obnoxious oversharing" by friends are already pushing him toward other forms of social media such as Twitter. He adds that advertisements are a lot less annoying when they're limited to 140 characters.

Ben Wachtel, a 23-year-old from Indianapolis and a Facebook user since high school, says he feels like he and his friends are using the social network less and less, as ads crowd out posts from real people. He says the main reason he stays is because Facebook provides a home for his years of photos.

"I hear people say they don't get the updates from their friends that they used to, that they just don't care what's out there," Wachtel says. "If they add videos, especially auto play ones, it's just going to push people away."

Under the current plan, the advertisements automatically start playing without sound when they appear. Users can click on a video to view it with sound, or scroll past it if they're not interested.

Facebook notes that for mobile users the advertisements are preloaded only when a device is connected to wireless Internet and will not consume additional data, removing a big worry for users who face hefty charges if they exceed the limits of their data plans. And no sound will play unless a user clicks or taps on the video.

Facebook says it's been testing the silent auto-playing videos for video content shared between Facebook users since September, and has seen a 10 percent increase in the number of videos users watch, like, share and comment on.

Tim Johnson, a 37-year-old Facebook user from St. Cloud, Minn., says that while the videos will probably be annoying he doubts they will prompt many users to leave Facebook for other social media.

"What we've seen over and over again is Facebook makes a change and then people complain and then more people join anyway," Johnson says.

While Johnson jokingly refers to himself and other Facebook users as "sheep," he says he thinks the silent nature of the videos will make them significantly less bothersome than they could be.

Facebook's news comes as online advertising spending continues to rise. According to research firm eMarketer, spending on digital video advertising will more than triple from 2012 levels to $9.42 billion in 2017, though that still pales in comparison to the TV advertising market which is expected to reach $75.25 billion by the same year.

"Video advertising is going to be huge for not just Facebook, but across the Web," says Debra Aho Williamson, eMarketer's principal analyst.

Williamson notes that the line between TV and Internet advertising is growing blurry, as more people choose to watch their favorite shows online.

Autoplay ads have the potential to be very effective, Williamson says, because people are more likely to pay attention to ads if they don't have to decide whether to click on them.

___

Follow Bree Fowler on Twitter at http://twitter.com/APBreeFowler

Source: AP Business

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by 30 per ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

Indians in Gambia contribute to fight against Ebola (Lead, superseding earlier story)
Dakar (Senegal), Oct 22 (IANS) The Indian community in the West African nation of Gambia, has provided 865,000 dalasis ($20,567) to that country's government to boost preparatory strategy against the Ebola virus disease, a gesture that has been highly appreciated.
 
 
Nepal ministries monitor 'third worst airport'
Kathmandu, Oct 22 (IANS) Five Nepalese ministries Wednesday decided to monitor the country's only international airport after it was ranked as the world's third worst airport by a famous travel website, saying the airport resembled a "bus station in an impoverished neighbourhood".
 
 
Indians in Gambia contribute to Ebola fight
Dakar (Senegal), Oct 22 (IANS) The Indian community in neighbouring Gambia, one of the three countries in West
 
 
Cuba to move UN for lifting of US embargo
New York, Oct 22 (IANS) The Cuban government will submit a draft resolution to the UN General Assembly (UNGA) Oct 28 to end an economic, financial and trade embargo the US has imposed on it.
 
 
 

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
 
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
 
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
 
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
 
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
 
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
 
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
 
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
 
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
 
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla