Facebook Video Ads asks for $1-2.5 Million/Day

Based on a recent Nielson study, for consumers aged 25-35 during day time facebook has a reach comparable up to 4x networks measured. Consumer product goods marketers (P&G, Unilever, Coke, facebook ) are interested to target this audience. Having said that, Bloomberg reported this week that facebook will launch 15sec TV commercial for $1M-$2.5M/day. Below I will briefly discuss the pros and cons. On the positive side, there are three factors. First, this is a feature to show significant monetization, (FB price eclipse its IPO price this week). Second the offer will create a new revenue stream and will compete for TV network ad spend ($60B market). Third, the data rich platform is perfect hyper-targeted marketing. On the down side, there are three factors. First, ad can invade user experience, interrupted with unwanted ad. Second, the advertisement could alienate user and erode user base. Third, no metric performance on facebook TV ad, marketers are taking a gamble. Only time will tell whether fb TV ad or television network ad will play out in the market. http://www.nielsen.com/us/en/reports/2013/running-digital-audiences--walking-advertising-dollars.html