Facebook’s non-yet-confirmed video ads will generate $1bn in 2014
Facebook will generate $1bn in revenue from video ads in 2014 and up to $6.5bn by 2020, according to a report from Morgan Stanley analysts Scott Devitt, Jordan Monahan and John Egbert.
Branded video ads, which haven't actually been confirmed by CEO Mark Zuckerberg but have been hinted at by inside sources, will reportedly roll out later this year on US News Feeds before being introduced in Europe in late 2014, Asia in 2015 and the rest of the world's markets by the end of 2016.
"Reports suggest that the ad unit will auto-play without sound; when a user switches on the sound, the video will play from the beginning," the study reads. "If a user is not interested in watching the video, he/she simply scrolls past it. Ads will be limited to 15 seconds, with asking prices in the 'low $20s' on a CPM basis, according to agency sources."
The Drum reported last month that Facebook was preparing to sell the video ad space to brands and marketers for as much $2.5m for three showings a day.
Upon the unconfirmed rumors The Drum gauged the industry’s reaction as to what the move could mean for the media and marketing sector, and its clients.