Facebook announced this week that it would be fairer to advertisers when charging them for views on video commercials. Until now, marketers were charged every time an ad came into an user’s view, but business owners complained that that was not enough for the cost of the ad to actually pay off.
After the new update, Facebook will charge advertisers after 10 seconds of ad playback. The move is expected to appease advertisers who had to pay for all their video ads even though potential customers were only casually scrolling past them.
People familiar with the matter said that the social network site already announced the change to its ad buyers.
Nevertheless, Facebook ads are getting bought and sold via online auctions, so potential buyers should expect higher fees for the 10-second view time.
Video ad market currently is worth more than $145 billion worldwide, so precisely knowing what may be of interest to potential customers, or what the elusive “viewable” ad may be, may prove vital for the industry.
A group that controls a $105 billion annual spending for video ads across the planet promoting the products of Unilever, Dell or Ford said that it wants online platforms including Facebook to only charge its clients for ads that are clicked by users not those started automatically, for those viewed un-muted, and only if the ad was watched half-way through.
Yet, Facebook said that there’s no need for video ads to be un-muted because the traffic is so huge on the platform that it generates added value even if people watch them with sound off. The site also disclosed this week that the ten-second approach was triggered by a wave of complaints coming from advertisers.
On the other hand, the company is not convinced that the new option would help advertising partners reach faster their goals, but it was a move to provide them with more “choice” when buying an ad.
Advertisers also urged Facebook to allow independent research firms estimate the traffic a certain video ad generates. Currently, advertisers must trust Facebook’s statistics on how long and how much their ads are being watched.
Facebook replied that it was working in providing more accurate and reliable statistics with the industry-backed Media Rating Council and independent companies. The social networking giant acknowledged that the current options advertisers have are not sufficient.
In the meantime, competition has other strategies of luring ad buyers to their venues. Twitter said it would only charge advertisers if a video ad is displayed for more than three seconds with 100 percent of the ad visible on the user’s screen. That’s a lot more than the Media Rating Council had requested for, i.e. 50 percent.
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