When Facebook announced its 2014 end of year results, they showed off a huge increase in revenues, and monthly active users. The annual achievements from Facebook far outshone those of other social media giants, including Twitter.
Following such growth, people are naturally eager to know how Facebook plans to maintain this high level of growth for this year.
The answer is likely to lie in video ads. The long awaited video ads have finally been launched by the company, and are now being shared with the mass of Facebook users. The potential expected from this area is expected to bring Facebook more astonishing results next year.
The video spots, which will be in demand for advertisers, will ensure a lot of revenue for the company. During the video testing phase, facebook was in a position to be very careful in their decisions on which partners would be involved in the testing of the videos. Each of the marketing partners was charged a cool $1 million a day to participate- a price they were all willing to pay due to the proven success of video ads. Their success is further enhanced on Facebook as they have the ability to utilize vast amounts of user data to maximize of their benefits.
It is estimated that Facebook’s revenues will rise by 6% in 2015 largely due to the proportion of the estimated $600 billion spent by marketers to get in on the company’s video ad action. This proportion continues to grow to keep up with the number of users online that continues to grow. Unlike other ad platforms, digital and video ads can be targeted towards particular groups and it is possible to measure the results of these ads.
In a survey conducted earlier this year, 63% of marketers said that they already have or are planning on purchasing video ad space on Facebook in the next 6 months. The percentage that did not will likely have their minds changed with the figures presented on video ads in 2015.