Facebook (FB) has announced that it will start selling video advertisements from later this week. While the company is quickly emerging as the leader in digital advertisement [second to Google (GOOG)], it still lags far behind TV in terms on total U.S. advertisement industry. This will help Facebook target a larger chuck of the total advertisement industry and especially when competitor Google is has already proven this market with its YouTube platform. This is just another reason to stay bullish on this amazing technology stock which continues to find new ways to improve its handheld monetization.
Facebook develops products and services that allow users to connect, share, discover and learn. Essentially, the company is offering a virtual social interaction platform. Facebook's platform also enables developers to engage with the users. By redirecting users to developer's apps and websites, Facebook is acting as a catalyst for developer's growth. It also provides an online payment infrastructure that enables developers to receive payments from Facebook users. Marketers use Facebook's platform for advertising. With over one billion MAUs (Monthly Active Users), Facebook offers marketers the ability to reach a vast consumer audience. Marketers can indicate the maximum price they are willing to pay for their ad, per click (CPC) or per thousand impressions (CPM), and their maximum budget. A preset number of ad impressions are also offered for a fixed price. They can use Facebook's analytics platform to track and optimize the performance of their campaigns. Facebook faces competition from a range of companies offering comparable social platform, e.g. Google+, to companies that replicate discrete capabilities Facebook provides. The company classifies its revenue in two categories, Advertising and Payments & Fees. Advertising revenue made up around 85% of the total revenue in the trailing twelve months, with the rest coming from Payments & Fees. Facebook receives a fee from developers, through its payment infrastructure, when users make purchases on its platform.
Facebook: Video Ads And Other Reasons To Be Bullish http://seekingalpha.com/article/1902381?source=ansh $FB, $GOOG