Facebook Inc. plans to introduce TV-style ads similar to TV networks, a strategy that would bring social network revenues of approximately $2.5 million per day, according to sources close to the company, quoted by Bloomberg.
The biggest social network in the world, which currently has 1.15 billion users, is trying to break the monopoly held by television networks on advertising budgets. Thus, as of this year, Facebook is expected to display commercials lasting 15 seconds, similar to those on TV.
Facebook wants to increase its revenue given the millions of users who visit the site each day, including during prime-time hours (8 PM to 11 PM). Also, in the last quarter, 61% of Facebook members have joined this social network daily and their number is growing.
“Every night, 88 million to 100 million people are actively using Facebook during prime time TV hours in United States alone,” said last week Sheryl Sandberg, Facebook chief operating officer.
Elisabeth Diana, a company spokesman, declined to comment on Facebook’s new advertising strategy.
Social network already allows the advertisers to upload video clips on their Facebook accounts, but the new service will allow them to upload videos directly on the Facebook news feed. 15 seconds is the duration of video clips which can be posted since last month on Instagram, a Facebook site where users share photos. Therefore the commercials will be familiar to users of other services currently provided by Facebook.
Facebook strategy states that initially advertisements may be broadcast during the day and will be targeted based on the age and the gender of users to whom they are addressed, the sources said.
However, Facebook members will not show such an advertisement for more than three times a day. Depending on the target audience of the advertiser, the cost for such ads will vary between $1 million and $2.5 million per day, according to sources quoted.
Mark Zuckerberg, chief executive officer of Facebook, which works on this strategy together with Carolyn Everson, the marketing expert of the social network, has twice postponed the date for the implementation of this strategy.
Last week, Zuckerberg said he is “sensitive” at how Facebook users react to advertising on this site. Zuckerberg wants to ensure that users of the social network will not be affected by the introduction of such advertisements.
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