According to an FT report, the new video ads will appear in a user’s newsfeed with the first video starting automatically but without any sound. Users will then have the option of activating audio at which point the video will restart from the beginning.
The social media network is expected to charge in the "low $20s" per thousand video views, and users are expected to only be served video content from one brand per day, to maximise the impact for marketers.
News of the upcoming video launch is emanating from the US, where Facebook has been discussing the offering with media agencies and clients.
It is widely expected that the new video service will be rolled out across Facebook's network, including the UK.
Last month, Facebook created a stir when it announced its first market specific advisory board was to be established in the UK, including leaders from Havas Media, MediaCom, ZenithOptimedia, Omnicom, Mindshare, Starcom MediaVest and Aegis, as well as clients Tesco, Unilever, EE, PepsiCo and Coca-Cola.
An initial 12-strong UK board has already had a meeting, but a larger group is expected to meet for the first time in June/July.
Questions have been raised about whether the board could compromise agencies’ roles as independent advisors to their clients. The board will meet four times a year and focus on product development, campaign measurement and insights, and marketing best practices. The UK collective is expected to meet for the first time in the coming weeks.
One of the leaders on the board confirmed today that they would expect the upcoming video initiative to be among the topics being discussed, along with specific areas around its development in the mobile space.
According to the latest IAB figures, video advertising grew 46% to £160 million in the UK last year, and now accounts for 12% of all online and mobile display. In the last three years video ad spend has increased almost six-fold (471%) and many analysts expect it to continue to grow by more than 30% over then next two years as 4G and mobile ad sales operations take off.
Facebook declined to comment.