It's no secret that Facebook is planning to launch video advertisements in the not-too-distant-future. What is surprising is how much the industry is tipping these ads to be worth.
According to a new report from Morgan Stanley, Facebook video ads will be worth US$1 billion in 2014.
Watch this space
As reported in Mashable, the report estimates Facebook will launch video advertising in the US later this year, and predicts the ads will make up 1 per cent of all TV spending in the US.
Europe, Asia and the rest of the world is expected to join the party soon thereafter, with Morgan Stanley stating video ads will be worth more than US$6.5 billion by 2020.
Numbers
The report was based around financial reports from media sources including The Financial Times and Bloomberg.
While the numbers are big, they're not completely unexpected as Facebook's ad revenue continues to skyrocket. The company amassed US$1.6 billion in ad revenue in the second quarter of 2013, a 61 per cent increase over the same quarter last year.
It's a profitable cycle – news of the revenue boost saw Facebook shares increase by 45 per cent.
Video switch
With YouTube set to earn a tidy US$4 billion from video advertisements this year, it's logical Facebook wants to throw its hat into the video ad game.
How users react to an already crowded News Feed vying for space with video ads remains to be seen.
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