Facebook Charging $1 Million For New, Intrusive Video Ads; Facebook has previously claimed its logged-in audience is equivalent to three Super Bowls every day

April 17, 2013 Leave a comment

Facebook Charging $1 Million For New, Intrusive Video Ads

Jim Edwards | Apr. 16, 2013, 8:43 AM | 2,455 | 14

Facebook wants $1 million from advertisers who want to be the first to run video ads in users’ news feeds this summer, according to Ad Age. And users won’t have a choice over whether they see them: the 15-second spots will be on “autoplay,” meaning that they’ll run like regular video ads on any other website, starting up whether users like it or not. The move was expected. Business Insider noted in December that Facebook was considering autoplay video ads. The company believes it can take a significant share of ad money currently being spent on TV by showing advertisers superior return on investment measurement. Facebook is already the second biggest server of online video, after YouTube. Facebook has previously claimed its logged-in audience is equivalent to three Super Bowls every day — making it the perfect place to launch new movie trailers.Initially, Facebook users will no more than three ads per day:

In its own version of an upfront marketplace, Facebook is currently selling four daily summer “slots,” each targeting a relatively large demographic: women over 30; women under 30; men over 30; and men over 30. The ads will be capped at 15 seconds and frequency capped to ensure that no user sees more than three per day, with an asking price of upwards of $1 million, according to one executive.

They will also be intrusive, Ad Age says:

While the format of the units isn’t totally nailed down, it’s widely assumed that they’ll be autoplay and presented in a video player that expands beyond the main news-feed real estate to cover the right- and left-hand rails of users’ screens on the desktop version of Facebook …

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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