Will Facebook Video Ads Drive Users Away?
How do you feel about seeing video advertisements when you scroll through your Facebook (NASDAQ:FB) newsfeed? Like it or not, it’s coming soon — possibly as early as the fall — and Mark Zuckerberg and Facebook are hard at work attempting to make sure the ads won’t drive you away.
Facebook has been mulling the idea of moving into the lucrative online video ad business for months now, but the delay has come from the very top as Zuckerberg has been hesitant to implement a feature that is sure to annoy a lot of users. The new video ads, which will show 15-second-or-less clips on both smart-phones and the web, could generate up to $1 billion for Facebook in its first year, according to Morgan Stanley analysts.
While the amount of money potentially generated from the ad service is likely to outweigh the risks of annoying customers, Facebook is nonetheless moving cautiously to make sure the ad service is not overly intrusive. In fact, the move towards video ads have progressed so slowly that some advertisers had already created 15-second ads expecting the Facebook advertising service to be ready this summer — when the ad service was pushed back, advertisers were forced to find other plans for their advertising campaigns.