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 spots would be 15 seconds in length, according to Bloomberg, and they will be sold on a full-day basis and targeted to users based on their ages and genders, mirroring the April Ad Age report.
Sources told Bloomberg the video ads would cost between $1 million and $2.5 million per day, depending on how large an audience brands want to target, and they added that Co-Founder and CEO Mark Zuckerberg has pushed the launch date for the product back at least twice, with an eye toward ensuring that they have minimal effect on users’ experiences on the social networks. According to Bloomberg, Zuckerberg wants the ads to be in HD and wants their playback features to be as simple as possible.
In the April Ad Age report mentioned above, the magazine cited June or July as the launch date and provided many of the same details Bloomberg’s sources offered.
In June, Ad Age reported that the project was on hold until “at least mid-October,” with sources telling the magazine more development was needed on new features Facebook planned to release simultaneously with video ads.
Business Insider shared conflicting reports last week, with Spruce Media CEO Rob Jewell pegging the fourth quarter as the likely launch date, while another source told Business Insider video ads were tabled until at least 2014.
Readers: Do you think brands will pony up $1 million to $2.5 million for one day’s worth of video ads on Facebook?
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