Tomahawk, WI 01/15/2014 (BasicsMedia) – News has been surfacing for quite some time that advertisers prefer advertising on Facebook Inc (NASDAQ:FB)’s platform over Twitter Inc (NYSE:TWTR)’s. It was expected given the 1.2 billion user base of Facebook.

Facebook’s Video Ads:

The trend towards social media sites has made advertisers shift their preferences to this medium. Consider the facts; Facebook’s 1.2 billion users spend an average 392 minutes per month on the site. This makes Facebook the most preferred social networking platform and also manages to beat the other media available to the advertisers. Many youngsters are in fact addicted to such sites and spend most of the time on social media. The advertisers have little choice but to put their ads here, they cannot be reached either through newspapers or even television.

In this context, Facebook’s launch of video ads is a welcome step. We have become accustomed to audio visual media and absorb message better that way.

What Could Be The Size?

There are several guesstimates floating around. Nobody is able to predict the actual size of video ads on social networking sites. Estimates suggest that advertising on social media sites could take 81% of the total on line advertisement revenues from 2013 to 2017. Facebook Inc (NASDAQ:FB0 is expected to get a huge 63% of the share. The video ads are likely to generate at least $1.1 billion for Facebook by 2015. But, again, there are no ball park figures to follow.

One issue facing the company would be mobile advertising as Facebook has 507 million active users using smartphones and mobiles to access the site. There are several issues like bandwidth usages. Given the small screen size of smartphones, many analysts also doubt the efficacy of video ads on mobiles. Things will get a lot clear once some figures are published.

Improved Offerings:

Facebook Inc (NASDAQ:FB) is working overtime to resolve issues. It has already improved its advertising offering. Results can be seen on Instagram. The recent news about Sponsored Stories did not create any negative feedback as Facebook has taken steps to ensure that similar ads can be released. The acquisitions of the past month or so also suggest that Facebook is seriously working on revamping its content delivery platform. It still has some time as Twitter is yet to pose a serious threat, as yet. The others are still a long way off, but they could gain on Facebook quite rapidly.

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