Zuckerberg to charge $2.5 million a day for video ads on Facebook

Zuckerberg to charge $2.5 million a day for video ads on Facebook.

Facebook revealed yesterday that it will sell 15-second-long television-style ads for as much as $2.5 million a day.

According to sources, the ads will initially be sold on a full-day basis and can only be targeted to users based on age and gender. Facebook users will not see an ad more than three times in a given day and depending on how large the audience that the advertiser plans to reach, the ads will range from $1 million to $2.5 million a day.

Facebook is therefore attempting to capture its share of the billion-dollar advertising industry, where marketers allocate big budgets to television spending.

Last October, Facebook COO Sheryl Sandberg told investors during an earnings call that advertising on the social networking giant is superior to that seen on TV.

Whilst huge events like the Super Bowl can attract up to 108.4 million viewers (in 2013), Facebook has the attention of 1.15 billion users. “And it happens every day”, Sandberg said.

The video ad feature is a big bet for Facebook, after big tech companies like Apple attempted to charge $1 million for an ad but was forced to gradually draw down the price when clients complained.


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