Updated 7/8/15: given the recent change to how Facebook charges advertisers for video views, we reached out to our very helpful Facebook reps to clarify what exactly the options are now:
- Option 1: oCPM for video views. This will optimize for video views and you will be charged a CPM
- Impact: set and forget it. Trust Facebook to find the most relevant viewers 🙂
- Option 2: CPV for 10 second video views. You will only be charged for those who watch 10 seconds of your video
- Impact: most control and in theory assures the advertiser is paying for quality rather quantity. Risk here is under-bidding and as a result limited reach
- Option 3: CPM, You will pay on a cost per thousand impressions. This will optimize for reaching the most people possible.
- Impact: provides some control to the advertiser, but isn’t paying for impressions so 2014???
We recently hosted a webinar on the explosion of video advertising, specifically comparing the top social video ad platforms of YouTube, Facebook & Twitter. (If you weren’t able to join us, you can find the recording on social video ads here.) As is typically the case with nearly all the social ad platforms these days though, they’re constantly changing and just the other day Facebook caved to marketers requests to update how they charge Facebook advertisers for video views. (I would like to think we had an impact on this decision, as we were part of a usability study a few months ago on Facebook video ads.)
Prior to this announcement, Facebook advertisers were charged after someone “watched” more than 3 seconds of a video. While the cost per view on Facebook is extremely low (usually around $0.02 – $0.04) that’s largely the result of autoplay, and one had to wonder if 3 seconds was a reliable measure of engagement (Video view metrics are readily available in their reporting BTW.)
With the change to 10 seconds, Facebook now offers advertisers a few options for how to pay for video views moving forward:
- Video views – Pay per impression: while the description seems to indicate you’ll still only be charged for users who watch at least 10 seconds of video, that’s not actually the case. You are paying for impressions, but you do have the ability to tell Facebook how much a view is worth, so that Facebook can work backwards to come up with a CPM that is closer to what YOU think a view is worth, versus letting them decided
- Video Views – Pay Per View: this is the option you’ll want to choose if you desire more control over spend and only want to pay after someone watches at least 10 seconds. You can let Facebook bid for you in an effort to find the most views at the best price; or, if you happen to know what a view is worth to you, you can set a bid
- Daily unique reach: My gut tells me the majority of advertisers don’t use this bidding method much (we don’t either), which is basically a way to force an impression cap and only show your ads up to once per day. Advertisers pay on a CPM basis
Whatever the actual reason was, I’m glad Facebook made this change. It’s an indication they are listening – to whom is up for debate – and as video advertising continues to grow, it’s crucial they offer an advertising product that builds trust with advertisers.
What do you think?