Facebook, Home, Login, Mobile: Advertisers To Pay $2.5 Million A Day For 15-Second Streaming Ads?
Facebook is planning to sell TV-style commercials on its site for as much as $2.5 million a day, two sources claim.
According to Bloomberg News, the world's largest social networking site expects to start offering 15-second spots to advertisers later his year. Facebook rose above the initial 38 public offering price in early trading.
The move would assist Facebook in collecting ad dollars originally designed for TV networks. Other heavy hitters, such as Google and AOL, have already begun video-streaming ads five days a week.
More advertisers would be able to capitalize on Facebook's 1.15 billion members. As of last quarter, 61% of Facebook members were using the site daily, a number that has risen despite management predictions that it would decline.
Where will the ads appear, and how will users react? Zuckerberg said that he is sensitive to how users react to advertising. He plans to limit the amount of ads people to see about one for or every twenty updates, comprising 5% of the news feed.
"One of the things I watch most closely is the quality of our ads and people's sentiment around them," Zuckerberg said. "We haven't measured a meaningful drop in satisfaction."
As previously reported, Facebook announced that it that it had revved up its mobile advertising from nothing a year ago to 41% of total ad revenue of $1.6 billion in the second quarter.
"I think this shows that all the questions that people might have had in the past about whether Facebook could monetize on mobile devices, they've settled definitively," Debra Aho Williamson, an analyst with eMarketer, told the New York Times.
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