Facebook has been putting ads in the sidebar and in their news feed for a while. These ads appear similar to posts, coming from a particular Facebook page and having an image and some text. However, Facebook is planning to extend its ad network for more video. A spokesperson from Facebook sent the following response to TechCrunch.
We are testing how to best deliver video ads through Audience Network to people watching content on connected TVs. Our goal is to bring relevant ad experiences to people both on Facebook and off.
As more smart set-top boxes are bought, this will become an increasingly large way to earn revenue from a passive audience, and it makes sense for companies like Facebook to determine how to deliver better ads. As it stands, commercials interwoven with content is not too useful. The audiences are too general to target ads effectively. A young adult watching CNN may see advertisements for Alzheimer’s treatment, or a person with a new car may see a commercial for an even newer car. Additionally, political advertising saturates everything close to election day.
By having greater knowledge of your interests, advertisers can target you better. They may know you’re younger, but can use a commercial about someone’s grandparent. They can advertise some car add-on for your new car. They can show commercials that align to your political beliefs.
This may make some people feel uneasy, especially the last one, but having more effective commercials are beneficial to advertisers since they can spend less per viewer and that may drive down the cost of advertising. Cheaper ad costs mean more companies can do it. This may lead to fewer commercials since one can be worth the same cost as five broader commercials.
What do you think will be the future of ads in the media? Let us know in the comments below.