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.



    • Michael Levanduski

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