Late last year, Facebook announced it was beginning to test out video advertisements for brands. Then, earlier this year, Instagram jumped on board this video ads train. (Makes sense considering the photo-sharing platform is owned by Facebook.) If you’re thinking “so why haven’t I seen any video ads yet?” you’re not the only one. The majority of the advertising world is patiently waiting for this new option to be available for their brands. But before advertisers begin segmenting some of their budgets to social video ads, there are a few things they may want to know first:
What will be the parameters for video ads?
The video ads will be 15-second video spots that will automatically start playing as the user scrolls over them. This is similar to how the user-generated videos on both platforms auto play. We know that on Facebook, there will not be sound playing until the user opens it up to a full-screen view.
What will they cost?
A lot of dough! For Facebook video ads, it’s expected to cost between $1 million and $2.4 million a day. Instagram says it doesn’t have a rate card and CPMs are based on factors like targeting, reach and frequency. However, some ad executives are saying that a month-long buy could be anywhere from $350,000 to closer to $1 million.