It is talked about time and time again. How is Facebook Inc (NASDAQ:FB) going to monetize the fact that it is one of the most visited sites in the world? While the social networking giant has done a decent job at this in the past, it is something investors are going to be paying closer attention to in the near future.
Nobody knows for sure what Facebook is going to do next. While the company is sure to have some ideas up its sleeve, it has to tread lightly with each and every decision that it makes.
Remember, if Facebook Inc (NASDAQ:FB) does anything to alienate its audience it could mean a big fall for the company.
With all this in mind, many believe video ads are going to be the next big thing for the company. Nobody knows for sure if this is going to happen, but it is safe to say it is something Facebook is exploring.
For a better idea of whether or not this is a possibility, we don’t have to look any further than a recent Bloomberg video featuring Brian Wieser, Senior Research Analyst at Pivotal Research Group.
He discusses the growth of video advertising in general, as well as what this means to Facebook Inc (NASDAQ:FB) right now as well as how the company can benefit in the future.
“The way I look at video advertising in context of Facebook is it is part of a package of inventory that they will sell to advertisers. And what that package is is evolving, whether it is sponsored stories, whether it is something again that is on the newsfeed, mobile or desktop, or any other of its assets. Video is just one of those things.”
As you can see, Wieser feels that video advertising could be exploited by Facebook Inc (NASDAQ:FB) in the future but does not believe that it is going to take over in terms of how the company generates revenue.
Magid Abraham, CEO of Comscore, then jumps in to discuss the ways in which people interact with video advertising online:
“I think the big benefit of an online video as opposed to a TV video, it is a lean forward experience, you know what you are watching. Some people want to skip through the video and companies sometimes give them the option to do that.”