Facebook said that it is currently planning an income-generating strategy that would allow it to steal the television industry's advertisers. Fifteen-second long high-quality video ads that would be similar with the commercials on the television would be worth US$2.5 million each day for advertisers.
Facebook reported that it has more than 1 billion users. The social networking site believed that charging advertisers US$1 million to US$2.5 million each day was reasonable considering its increasing number of users. The price of the advertisement would depend on the number of people advertisers want to reach. Facebook said it could sort the users by their age and gender.
Facebook generated 85% of its US$6.8 billion earnings this year from advertisements. Sir Martin Sorrell, WPP's CEO, spends US$73 billion on advertising each year. WPP was the world's biggest marketing group. Facebook was able to earn US$200 million from WPP while Google earned over US$2 billion from Sorrell's company.
"Facebook has a great understanding of people's interest graphs," Anne McCreary, Carat's digital strategy director, said. "Add real time [knowledge] to that, and you get a very powerful offering". McCreary is an expert in social dynamics and has helped clients through clients in maximizing opportunities in social platforms like Facebook, among others.
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