Despite Setbacks, Facebook Will Still Dominate the Video Ad World

Share This Article
September 27, 2016 10:14am Nasdaq:FB

Social media titan Facebook Inc (NASDAQ:FB) got into some hot water recently over how it measured average viewing times, but the company is still poised to profit handsomely from advertisers’ growing appetite for video.


FB was roundly criticized for inflating average viewing times, and big changes could be coming in the industry as a result. Still, those factors are unlikely to hamper the company’s opportunity to capitalize on the rapidly-growing world of online video advertising.

According to ad research firm eMarketer, “A May 2016 study by Animoto found that over 70% of US marketers it polled planned to use social video ads in the coming 12 months, with Facebook leading the way among specific platforms, followed by Google’s YouTube and Facebook-owned Instagram.”

fb-emarketer-1Image: eMarketer

Plus, the next big thing in the ad world is live video, which Facebook is well positioned to take advantage of:

Another area in which Facebook is disrupting the landscape is live video. The TMB/Advertiser Perceptions study cited earlier showed that majorities of US agency and marketing executives were considering investing in live streaming ads. Relatively few were ruling out this platform, so it’s reasonable to expect this to be a hotbed of interest in the coming months.

Facebook has already begun testing 15-second mid-roll ads on live streams from an elite group of publishers, in a move many believe is a signal of an impending ad platform specifically for Facebook Live.

Let’s just hope the company is a bit more honest about its video viewing metrics this time around.

FB-2016-09-27

Facebook shares rose $0.72 (+0.57%) to $128.03 in Tuesday morning trading. Year-to-date, FB has surged 22.42%, versus a 5.31% gain in the benchmark S&P 500 during the same period.


9 "MUST OWN" Growth Stocks For 2021

Read Next



Free Investing Ideas Newsletter!

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

Most Popular



9 'MUST OWN' Growth Stocks for 2021

Explore More from ETFDailyNews.com

Free Investment Newsletter

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories