Facebook Pursues Agencies to Launch Video-Ad Business

If its large asking price is met, Facebook could turn its anticipated video-ad units into a more-than-$4 million daily business right from the start. While all the details are not yet finalized, Facebook has been trying to sell agencies on the idea, attempting to secure accounts for the first slots which are to be available in June or July, according to executives. While the price tag is a concern, there is also a question regarding the possible backlash from users.

“While the format of the units isn’t totally nailed down, it’s widely assumed that they’ll be autoplay and presented in a video player that expands beyond the main news-feed real estate to cover the right- and left-hand rails of users’ screens on the desktop version of Facebook,” writes Ad Age. “Facebook has also been at work on a way to make video ads stand out on mobile apps, though it’s still unclear how it intends to accomplish this.”

“In its own version of an upfront marketplace, Facebook is currently selling four daily summer ‘slots,’ each targeting a relatively large demographic: women over 30; women under 30; men over 30; and men over 30,” notes the article. “The ads will be capped at 15 seconds and frequency capped to ensure that no user sees more than three per day, with an asking price of upwards of $1 million, according to one executive.”