Have You Considered Converting TV Ad Spend Over to Social Media?

by Jon LeSage, edi­tor, Used Car Mar­ket Reports

For deal­ers and automak­ers plan­ning their TV adver­tis­ing spend for Q4 and into 2014, it may start drift­ing away from local TV and cable sta­tions.

Face­book is test­ing videos that play auto­mat­i­cal­ly on web­sites and on mobile devices.

The 1.15 bil­lion-mem­ber social net­work wants to set up an attrac­tive venue for lucra­tive, tele­vi­sion-like video ads.

The videos will be silent when they appear in a Face­book user’s news­feed, but expand and play the audio when clicked.

For its mobile ads, Face­book is plan­ning to charge brand mar­keters $1 mil­lion to $2.4 mil­lion to show 15-sec­ond auto-play video ads on its social net­work.

Auto-play videos are being set up to run on smart­phones using Google Inc.‘s Android soft­ware and Apple Inc.‘s iOS soft­ware.

Google Inc.’s YouTube, Yahoo Inc., and AOL Inc., are also com­pet­ing for TV ad dol­lars – Yahoo TV has had automak­er spon­sor­ships for some of its shows.

Inter­net giants like Face­book are risk­ing alien­at­ing their audi­ences.

Many of whom spend hours on Face­book and YouTube for enter­tain­ment and social­iz­ing, and don’t want to be both­ered by TV ads.

Face­book thinks it can break into the TV adver­tis­ing seg­ment.

Poten­tial for rev­enue growth is big – TV ads make up more than $200B of adver­tis­ing dol­lars, much more than is made in online adver­tis­ing and mobile.

TV ads on social media will poten­tial­ly become a major avenue for reach­ing con­sumers who’ve left tra­di­tion­al media – the chal­lenge will be engag­ing them and not turn­ing them off alto­geth­er from Face­book and oth­er social media sites.

Source:
Reuters

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