The subject of Facebook’s long-rumored and perpetually delayed launch of video ads was raised during the social network’s third-quarter earnings call Wednesday, and the timetable remains up in the air.
The inevitable has drawn closer: Facebook-owned photo-sharing network Instagram confirmed that it will begin introducing advertising into its feed “in the next couple of months.”
Facebook Chief Operating Officer Sheryl Sandberg may have clammed up about video ads on the social network during the company’s second-quarter earnings call last week, but sources close to the situation are talking, specifically to Bloomberg, and the price tag on those video ads has reportedly risen to as much as $2.5 million per day.
The next big revenue-driver for Facebook will likely be its long-rumored introduction of video ads, but the social network has made no official announcements on when that product will debut, and sources close to the situation are all over the place with their guesses on the topic.
Facebook Vice President of Global Marketing Solutions Carolyn Everson touched upon several topics in a conversation with Ad Age, including the future of right-hand-side ads, the social network’s mobile advertising prospects, potential advertising on Facebook-owned photo-sharing network Instagram, and possible monetization of Facebook’s new hashtags.
The video ads Facebook originally planned to launch this month or in July are now on hold until at least mid-October, Ad Age reported, with sources telling the magazine more development is needed on new features the social network plains to release simultaneously with its video ads.
Facebook’s transition to a mobile-first company continued with great speed during the first quarter of 2013, as the social network reported that 30 percent of its total advertising revenue during the period came from mobile, up from 23 percent in the fourth quarter of 2012.
While Facebook users may see the video ads the social network is reportedly working on as a distraction, the company sees them as a potential $4 million-per-day opportunity, according to a report in Ad Age.
A few days before Facebook’s initial public offering last year, General Motors pulled its $10 million advertising campaign from the social network, unhappy that it didn’t have the control over ads it sought. But now it appears that the two sides have reconciled their differences. Ad Age reported Tuesday that GM is back in the mix as a Facebook advertiser.