Facebook Wants to Charge $1 Million for Video Ads
According to Ad Age, Zuckerberg and company want to stream four ads per day at $1 million per pop, earning the social networking site at least an additional $4 million every 24 hours, and perhaps more if it takes a cut on whatever the ads are selling. If successful, that would generate in the neighborhood of $1.5 billion in additional revenue per year.
That's assuming advertisers are ultimately willing to pay the steep asking price. Facebook also risks running off members who may view the social networking site as too noisy already. The ads themselves would likely autoplay in a player that expands beyond the main news feed and would run for up to 15 seconds. No users would see more than three ads per day.
To add some perspective, the cost to air a 30-second ad during the most recent Super Bowl was $3.8 million, which reached an audience of 100 million viewers. Facebook is home to over 1 billion active users and it hopes to bring even more into the fold through its recently launched Facebook Home platform.