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Facebook’s $1M Per Day Change

Facebook has been putting a lot of effort into increasing revenue through the use of advertising over the past several years.  Adding the auto-playing video ads into the news feed, for example, has been an extremely successful change.  To make it better, most people don’t seem to mind that these ads are there.  In fact, many marketers are doing such a great job in creating these types of ads, people are ‘liking’ them almost as much as the content produced by their ‘friends.’

According to the Wall Street Journal, Facebook is getting ready to launch a new advertising opportunity.  “Premium Video Ads” will reportedly be coming in the next several weeks, but they won’t be cheap.  The estimated cost is reported to be $1 million a day to display this type of ad on Facebook.  While this certainly weeds out the majority of performance marketers, there are still plenty of brands who are looking to get in front of the 1.28 billion active Facebook users, and are willing to pay a premium for the opportunity.

While $1 Million per day may sound like a lot of money, it might not be as bad a deal as many would think.  High quality video ads being displayed to millions of people have always been expensive.  Brands have paid millions for this ability on television for generations, with great success.  Facebook, however, is offering more than just a display medium (like television).  Facebook offers near instant analytics, the option for consumers to make quick purchase decisions, and even targeting abilities.  In many ways, $1 million per day is an incredible deal for a savvy brand that knows how to best harness the power of Facebook’s vast audience.

It is not exactly clear how these premium videos will be displayed, but we’ll all be finding out in the coming weeks.

 

About Michael Levanduski

Michael Levanduski is the assistant editor of Performance Marketing Insider, and an experienced freelance writer. He writes content for a wide range of sites in virtually every niche, though he specializes in technical writing as well as creating content for the performance and internet marketing industry. Michael was born in Grand Rapids, MI where he still lives with his wife and three children.

3 comments

  1. Hi Michael,

    High quality vids are an interesting opportunity for FB. Neat to see where this goes.

    RB

  2. Hi Michael,
    The only thing I want is that this should not ruin the user experience.
    But before all this what I think that Facebook should improve their news feed. I am just fed up of this.

    As you cannot see what you want to and as a page admin you cannot reach people.
    What do you think? Should Facebook improve it?

    • Michael Levanduski

      From all the studies and reports I’ve read, most Facebook users don’t mind the ads that are located in the News Feed. Even the auto-play video ads, which were controversial when launched, are being accepted by most users.

      Of course, they can be annoying, and hopefully Facebook will continue to improve.

      Michael

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