Now book 15-second Facebook Inc (NASDAQ:FB) ad spot at $2.5M a day
A major chunk of the advertising budgets of companies is channelized towards television ads and only a fraction of that is reserved for online advertising. And now
Facebook Inc (NASDAQ:FB) wants to change that mould. It is planning on selling TV-style commercials on its website. Well, that seems like a great idea but not one that will come at a pittance.
These 15-second spots will cost upto $2.5 million per day. Seems like the largest networking site in the world does not believe that companies should be thrifty, especially in these times of economic angst. Facebook has around 1.15 billion members and with an audience like that, seems like there will be companies who will head for that 15-second spot.
Not the only one
These plans have not yet been officially announced and all details are still under wraps. The company is not really doing something that hasn’t been tried and tested. In recent years, Google had begun funding various original content-channels on its highly famous YouTube video-sharing site. This gave it a more established space for commercials. AOL had started HuffPost Live a year ago. This is a CNN-style video stream that runs 5 days a week.
Cashing-in on a good idea
For Facebook, the intent is to cash-in on the millions of active users who visit the site everyday, even during the prime-time spots that TV advertisers vie for. As of its last quarter, 61% of FB members were using the site on a daily basis. This number has headed northward despite the fact that management thought otherwise.
Currently, advertisers on Facebook can upload their videos to their own pages and broadcast them from there to the news feed of users. This new service is different in that advertisers will be able to buy their way straight into the users’ feed with their 15-second pitch. Typically, that’s the minimum duration that a TV commercial runs.