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.