Facebook on Tuesday announced a new pricing option for video ads, after marketers raised concerns that the company has been charging for ads that were barely viewed by users. The new option is an attractive way for marketers to buy video ads as it continues to build up its competitive offerings against Google’s YouTube.
Advertisers will have to pay only for their video ad if it is played for at least 10 seconds based on the cost-per-view (CPV) basis. Previously, Facebook was charging advertisers on a cost-per-impression (CPI) basis, that means advertisers had to pay whenever their video ad showed up in someones feed and played for at least 3seconds.
The Wall Street Journal reports Facebook’s 10-second video ads are being sold via auction, adding that there’s a possibility the new ads cost more than other Facebook video ads.