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Facebook Plans to Start Video Advertising

On Tuesday, it was announced that Facebook plans to start video advertising. The social networking site says marketers will be able to take advantage of video ads in a “short amount of time.” Facebook is currently testing out a video ad for the film “Divergent” this week.

Facebook to roll out video advertising

Facebook plans to start video advertising.

The news comes after the Wall Street Journal reported that video ads would begin appearing on users’ feeds on Tuesday per nbcnews.

“As this is a test, we don’t have additional details to share at this time, but rest assured we’ll continue to refine this new way for brands to tell stories on Facebook,” a company spokesperson told CNBC in email.

Facebook video ads will run automatically once a user is logged into their account but will remain muted until people turn on their audio. The new ad forms will work on both desktop and mobile devices.

Facebook is clearly looking to further increase their adverstising revenue which saw a 66 percent rise in the third quarter of 2013 compared with the same quarter last year. Mobile advertising represents almost half of that figure.

Earlier this year, Facebook struck a cautious note about advertising with fear that an increased number of commercials might push their users away.

“So far there hasn’t been a negative reaction from Facebook users and video advertisiing will really reinvorated Facebook’s business. The tricky part is getting balance between maximizing revenue and not annoying users to the point  they leave Facebook,” Ian Maude, an online media analyst at Enders Analysis told CNBC.

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