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Facebook Inc (FB) Helps Netflix Inc. (NFLX) to Kill TV

Facebook Inc, Netflix Inc are still a buy despite market

Facebook Inc aims to appeal to more video advertisers. The firm wants to convince ad clients that their money will be better spent on mobile platforms rather than on TV. This comes nearly three weeks after the social giant made plans to release updated ad packages. Lately, the online firm has been offering a range of new services that aim to promote the business end of Facebook. Its latest advertising product was announced on Sunday and focuses on video ads.

Facebook Inc, Netflix Inc are still a buy despite market

The amount of money spent on video advertising is rising. Spending is projected to rise 13 percent through to 2019. This would place the video ad market at $15 billion according to eMarketer. The same time period is expected to show a 2 percent growth for TV ad spending. This market is expected to be worth $78 billion by 2019.

As cable networks worry about Netflix Inc taking their viewers away, they may want to cast an eye on the advertising dollars they’re losing to Facebook.

Facebook moves video to mobile

Making the most of its strengths on mobile is Facebook’s objective when it comes to ads. The firm’s app is the most used mobile app in the world. Facebook gathers more than 3/4 of its more than $10 billion ad turnover on mobile. The new ad services will also be made available on the firm’s Instagram platform.

“Facebook is listening to the ad community and giving them what they are looking for,” said Debra Aho Williamson, social media marketing analyst with eMarketer. “Does Facebook want video ad dollars? Yes.”

With new ties to enhance monitoring and feedback, Facebook is vying to appeal strongly to video advertisers. The social giant wants to assure ad clients, specifically those with video ad campaigns, that their money will be better spent on mobile instead of any other platform.

The products were rolled out just ahead of the 12th annual Advertising Week held in New York City. The event spans a week. It houses the largest advertisers and companies in the world.

Facebook helps Netflix

Facebook announced that it now has 2.5 million active advertisers in total on Sunday. The world’s largest social network has gone up by half a million since February. Its 1.5 billion active monthly users makes the entity just as large as most major TV stations.

While Facebook focuses its ad nature to TV, by improving its brand ads the platform is becoming a formidable alternative to TV, CNBC Reports.

Ads are sold based on how many people they will reach on most digital media. What makes entities like Facebook more desirable is their ability to advertise specific products to specific users. If you wished to advertise a specific product or service to a particular subset of users, there is only so much one can do to an ad on TV to ensure this. Facebook trumps TV with its ability to easily cater for custom advertising.

Netflix is forging ahead without ads, and is competing most directly with the Pay TV market. If Facebook can convince those buying ads to shift money away from TV firms, however, it’s likely to help Netflix CEO Reed Hasting’s toward his goal of putting the majority of TV on the web.

“We want to be the single-most important platform for all businesses,” said Carolyn Everson, Facebook  vice president for global marketing solutions.

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