In the world of online business, ads reign supreme. Internet giants like Facebook, Google, Twitter and more all earn the vast majority of their revenue through online advertising. However, throughout recent years, online ads have been relatively limited. Banner and text ads take up the vast majority of online ad space; but with growing demand in streaming video, I have a feeling that that's about to change. Although Google offers video ads through Youtube, and Twitter has announced that they are testing a video ad option, Facebook seems to be the giant that's likely to take the lions share of online video ads. Today, we'll talk about Facebook's push to video ads, why video ads are becoming increasingly important, and how you can profit from the news. So, let's get right to it…
Facebook Has Been Testing Video Ads For Quite Some Time
Facebook has been hard at work testing their video ads feature for several years at this point; however, we can expect these ads to take center stage relatively soon. As a matter of fact, the company has held important meetings with major industry leaders about participation in its video advertising program; some of which are already on board. Currently, massive companies like McDonald's, Lionsgate, Ford and Nestle are all showing video ads through Facebook; and the test seems to be proving that video ads are far more beneficial to the advertiser than standard banner and text ads.
Why Are Video Ads So Important
The reality is that the internet is still a relatively new phenomena; and it's evolving rapidly. Evolving right along with it are the habits of consumers. These days, more people spend more time, digesting more content in more ways online than ever before! The simple fact is that the way consumers get their news, connect with friends, and even play games is evolving. One of the biggest points in this evolution for those focused on profits from online advertising is the amount of time that's spent every day watching videos through social media. Currently, it's estimated that close to 4 billion videos are watched online through social networks every single day. To put that into perspective, if the 10 most populated countries in the world combined, their population still wouldn't be 4 billion! Simply put, streaming video through social media is a huge, and growing phenomena. Perhaps just as importantly, video ads are about 10 times more expensive than banner and text ads on average; giving massive social networks like Facebook the opportunity to really cash in.
How You Can Profit From Facebook's Video Ads
Keeping in mind the staggering statistics mentioned above, video ads will most likely prove to be a massive income stream for Facebook; and one that grows relatively rapidly. As a result, in the next couple of quarters, we should start to see a clear focus on income from video ads during earnings reports. This is bound to get investors excited; and we know that when investors get excited, stock values tend to rise. So, keep an eye on Facebook throughout the next few earnings reports. Chances are that they'll release news about video that sends the stock soaring; opening up several call option opportunities!
What Do You Think?
Do you think Facebook will be the king of online video ads. How do you think video ads will affect Facebook stock? Let us know in the comments below!