May 6, 2011

The Real Impact of Facebook's New Video Ads

Today Facebook revealed their pay-per-video ad product in partnership with TrialPay and various video content providers. Similar to Flurry’s recently announced AppCircle Clips product, users receive Facebook Credits for watching videos without leaving the game.

Outside of a basic integration of TrialPay’s Offer Wall, this marks the first directly consumer-facing ad product offered by Facebook within the game.  Of course Facebook is highly motivated to not only increase the revenue generated for its partners but also increase adoption of its Facebook Credits currency.  What other monetization products will Facebook provide its app developers?  Will we see in-game CPI cross-promotion, agency-managed brand integration, or email integrated advertising?

With powerful, seamlessly integrated monetization products and an increasing adoption of Facebook Credits, I believe we’ll see that small 1-3% audience of “paying” social game players triple in the next few years.

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