SAN FRANCISCO — Facebook is rolling out new advertising products that it says will help marketers better reach consumers on their mobile devices — and they may help Facebook make a big play for television advertising dollars.
The giant social network is targeting marketers who use video ads with a new product for buying online video ads that is similar to the way TV commercials are bought. The lure that Facebook is using: It’s a better way to reach millennials who spend far more time on their phones than watching TV.
Research firm eMarketer projects digital video advertising spend will increase 13% to nearly $15 billion by 2019. TV advertising is expected to grow 2% in the same time period to $78 billion.
“Digital video ad spending is growing rapidly, presenting new opportunities for Facebook,” eMarketer analyst Debra Aho Williamson said in an email.
However, “even as digital video grows by double-digit percentages year over year, TV ad spending is still expected to increase. We are not seeing TV spending falling at the expense of digital video,” Williamson said.
Facebook’s mobile ad business is booming. eMarketer expects Facebook to generate $12.5 billion in worldwide mobile ad revenue in 2015, an increase of nearly 69% over last year.
Most of Facebook’s new advertising products will also be available on Facebook-owned photo-and-video-sharing service Instagram. Instagram announced last week that it had hit 400 million monthly active users.
Marketers placing ads on Instagram will be able to target users based on Facebook demographic data such as gender, age and shopping history.
Other products include “brand awareness” ads and the ability to poll users on mobile devices about whether they saw an ad.
More accurate means of measuring the effectiveness of ads is something that Madison Avenue has been asking for, Williamson says.
“These announcements show that Facebook is listening and responding to the ad community, which wants even better tools for measuring the results from advertising on Facebook,” Williamson said in an email.
The new Facebook ad products were announced Sunday ahead of New York City’s 12th Advertising Week, which starts Monday.
Facebook also said it has seen 25% growth in the number of advertisers since February and now has 2.5 million of them.
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