The key source of revenue for Facebook is advertisement. It is precisely for this reason that Facebook has been trying to devise new ways of making money through ads. To this end, the company now plans to launch TV-style ads which will be 15 seconds in duration and will be sold for a whopping $2.5 million each.
Currently, the bulk of the advertisement by most companies goes to the more conventional medium of TV. However, with a huge bulk of users connected to the internet, the online space is fast becoming as lucrative a place to advertise on.
Especially when it comes to Facebook, the social network has some 1.15 billion users, making it the largest social network online. With such a huge audience, Facebook is an excellent arena for advertisers and marketers to display their ads. Until now, Facebook allowed them to display their ads on the right-hand column as well as through the Timelines of the users.
But now, the company has bigger plans. Facebook intends to launch ‘Instagram-length’ ads, essentially 15 seconds in length, and will be pushed out to users specified by the advertisers. Advertisers will be able to specify the intended audience of a given ad on the basis of gender, location, age group etc.
The price tag for these ads will range from $1 million to $2.5 million and they would be displayed on a user’s Timeline no more than three times. The company has apparently been contemplating the move for a while, but concerns regarding the quality of user experience were raised. Now, the plans seems to be in the final stage and we may finally see such ads crop up on our Timelines soon.
Courtesy: Bloomberg
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