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.”
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.
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.