Facebook planning video ads to rival YouTube?

09/05/2013

Facebook is planning to put video ads in newsfeeds from July, as the social network looks to rival Google’s YouTube.

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According to the Financial Times, the 15-second long videos will play automatically without sound, providing users the options to play from start with sound if interested.

The FT reports that firms such as Unilever, American Express and Coca-Cola are expected to take part in initial trials for the new ad product, alongside other brands on Facebook’s client council.

The prevent over-exposure, Facebook will ensure that users will only see content from one advertiser a day to begin with, the FT reports.

Facebook declined to comment on the plans, but sources say the site will proceed slowly in a bid to prevent the new videos from disrupting users and putting them off the site.

Although Facebook is still growing overall, its growth in developed markets, where technology is most able to play video adverts, is slowing down.

The FT said it expected costs to be in the “low $20s” per thousand video views, representing a slight discount on equivalent TV advert prices.

Yahoo and AOL are also among those who are expected to introduce video advertising.

Read the FT report here (subscription required)

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