The good news keeps coming for Facebook users who are dreading the expansion of advertising, as comments by Chief Operating Officer Sheryl Sandberg and Chief Financial Officer David Ebersman Tuesday night on not rushing to bring ads to the social network’s Paper iOS application and not increasing the flow of ads in the mobile News Feed were followed by a report by Mashable that video ads may not launch on Facebook until this summer.
However, three sources told Mashable that video ads could launch as early as late March or as late as early summer, as the social network is still tweaking its offering, reviewing its tests with upcoming feature film Divergent, and ensuring that the product can handle demand and offer advertisers robust analytics on their performance.
The sources also told Mashable that advertisers are still reluctant to embrace video ads on Facebook due to the high costs, which have dropped from reports of up to $2.5 million per day to as low as $600,000 per day. According to Mashable, that $600,000 figure buys one of these four demographic groups, with additional groups costing another $600,000 apiece: men over 35, men under 35, women over 35, and women under 35. Other sources told Mashable the price tag remains in the $1 million range.
Mashable noted that agencies are also struggling with how to entice Facebook users to click on video ads without sound, as the social network’s auto-play videos are silent until users click on them.
The outlook for video ads on Facebook isn’t all bleak, however, as one source told Mashable:
Once advertisers are given the opportunity to buy them, they won’t be lukewarm at all. Once it rolls out, it will be a huge source of intrigue.
Readers: What are your thoughts on Facebook video ads?
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