Analyst: Facebook’s Set to Add Billions from Ads by 2017
It’s not just Facebook saying that video is getting bigger on Facebook.
Research firm Nomura Securities has predicted that Facebook video ads will generate another $3.8 billion to the company’s total ad revenue by 2017, upping its price target on Facebook stock from $90 to $96.
Currently, Nomura analyst Anthony DiClemente, who led the research on Facebook, puts the company’s total share in digital video ad revenue at over 3%, suggesting it will triple over the next couple of years.
According to DiClemente, Facebook’s video ads boast some of the highest CPMs on the web, at between $22 and $28.
Facebook has certainly been making moves to improve its advertising game. It’s working to bring the “cinemagraph,” a half photo, half video format, to its platform, and it’s been adding more video content from TV programmers, such as MSNBC and Fox Sports, suggesting that premium video-ad dollars should soon start flowing into the social network at a greater clip.Tags: advertising, facebook, facebook ads, nomura, nomura securties