Facebook testing video ads in users' news feeds
Investors are giving a thumbs-up to the idea of Facebook making hundreds of millions in new revenue from video ads, but some users argue the social network is already too cluttered and has become more about commercialism than communing with friends.
Facebook said Tuesday it's testing video advertisements that show up in its users' news feeds. As part of the test, Facebook said some users Thursday will see a series of videos teasing Summit Entertainment's upcoming release of "Divergent," a film based on a young adult novel with the same name, in their feeds.
The Menlo Park, Calif.- based company says it's not currently selling video ads, and the company wouldn't disclose pricing.
Facebook's shares, which have posted substantial gains in the past four months, closed up $1.05 at $54.86 on the news.
Citi analyst Mark May said the video advertising effort could add more than a half-billion dollars to the company's revenue next year and up to $1 billion by 2016.
Revenue grew from $3.71 billion in 2011 to $5.09 billion in 2012 and was $5.29 billion the first nine months of 2013. -- AP
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