Facebook is all set to make ground in order to gain traction in video advertisements.
Facebook Inc. is the biggest social media network currently. The company does not see Twitter as its competition and is ahead of the micro blogging platform by miles in terms of users, monthly active users, revenues, and advertisements. It is believed that advertisements and videos on a social media network are necessary. Facebook generates a major chunk of its revenue from advertisements only and is leading the market of digital advertisements with Google, and YouTube on par and Yahoo, and Twitter behind it. The founder of the company previously mentioned that there will be more videos on the medium than text and images.
Hence according to Reuters, Facebook is working hard to gain traction in video advertisements. Reportedly, the company is making its space in the video advertisement segment. The company is gaining momentum as well as looking for possibilities to expand its reach in video ads in order to take on Google and YouTube in the same sector.
Furthermore, as company is making ground to gain traction, many large companies are in talks with the social media giant in an attempt to display their ads through online video on the network. Facebook has received the tremendous response so far.
According to a media research firm, Ampere Analysis stated “The competition between the social media company and online streaming service will soon intensify in the video ad space. Facebook has monthly active users (MAU) of 1.4 billion as compared to YouTube that has MAU of 1.3 billion.” This rising competition will allow the users to see a diversified range of ads on Facebook in the coming times.
Ampere Analysis further mentioned that the time is up for television advertisements and it will soon be replaced by the internet in over 12 key markets. This will amount up to a massive 28 percent being spent on advertisements by the end of 2017. However, another media research firm Zenith Optimedia commented that its research expects the advertisements spending to touch the $531 billion mark by the end of 2015.
The director at Ampere Research, Richard Broughton commented on Facebook’s video ads. He stated “If the social media network’s own video ambitions are to be realized, and if it is to convince content owners it is a viable alternative to YouTube, it must deliver comparable returns.”
Facebook’s product has attracted immense big name advertisers on its platform. It is believed that the company’s intentions to make more ground in this segment will prove to be beneficial in the coming times.
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