Facebook is steadily becoming a formidable player in the digital advertising industry. The social network will start integrating auto-playing video ads on users’ Facebook news feeds. Facebook’s unique ability to target audiences precisely could give it an edge in the market, even though video ads on Facebook cost about $1 million a day. Ace Metric and Facebook have been working together since last year to create a fAce rating to help select the “meaningful” commercials.
The first of Facebook’s new video ads is a Progressive Insurance commercial made especially for the social network’s unique platform. The ad reportedly reached every 18- to 34-year-old who logged onto Facebook yesterday. Earlier in the week, Facebook also introduced tools that are similar to TV ratings to help advertisers assess the outreach of their ads. Advertisers will now have access to data such as unique viewers and audience retention rates.
Facebook’s video ads may help get the attention of advertisers who have long sought TV as their medium of choice.
“The typical wall that media folks run into in big companies is history, history that TV works. And we’re always trying to shift the conversations. And it’s very difficult to change the language,” VP of Digital Marketing at USC Marshall Brandon Rhoten said in The Wall Street Journal. “Facebook’s video ads are actually apples to apples.”
To be chosen as a Facebook ad, brands must be invited to show a creative concept that will be put to test by the fAce rating system developed with Ace Metric. Desire, watchability, meaningfulness, and attention are just some of the categories that Ace uses to determine a video ad’s quality.
According to a related WSJ article, “Sterne Agee analyst Arvind Bhatia estimates video ads could boost Facebook revenue by about $1 billion annually by next year.” Facebook revenue is already up 85 percent since last year to $2.3 billion.