REPORT: Facebook Is Going To Charge 7 Figures For Video Ads

Posted Apr 16, 2013

Facebook is going to charge for video advertising units integrated into the social network.  If Facebook meets the goal of charging $1 million per unit, the company could generate $4 million per day from the video ad units.  Facebook is talking to agencies about the video ad units and wants to lock down commitments for June or July according to sources with AdAge.  At the price of $1 million per ad, the video ads will most likely be added on auto-play with an option to expand the video player into a larger size.

Facebook is currently selling four daily summer slots that target the following demographics: women over 30, women under 30, men over 30, and men over 30. The video ads will be at 15 seconds with a frequency cap so that Faceboko users will not see the ad more than 3 times per day.

Earlier this month, Facebook launched a new Partner Categories ad platform to enable advertising companies to serve users content based on where they are located, their history of online purchasing, and browsing history.  It is likely that the video ad companies will be utilizing this technology for the summer campaigns.  This campaign is similar to how Glamour Magazine is hosting 9 Google+ Hangouts that are focused on beauty products, which is being sponsored by various brands like Unilever and Pantene.