Facebook is offering an “upfront” buy through a new program called Showcase.
The details:
1) Video ads bought at a fixed/negotiated price
2) Verified by Nielsen
3) CPMs are ≈ $23–25
4) 43% of Facebook Watch audience is 18–34 vs. 28% for linear TV
5) ≈ 100M users in U.S. consume premium video content through Facebook
Video: Facebook Is Going After TV Ad Dollars with Brand-Safe Shows
U.S. share of digital time per day for Facebook:
1) 2017–9.0%
2) 2018–8.9%
3) 2019P — 8.9%
4) 2020P — 9.1%
Keep in mind: Facebook accounts for ≈ 20% of digital ad spend!
Facebook ad revenue per user hour (YoY growth):
1) 2017 — $0.45
2) 2018 — $0.60 (↑ 33%)
3) 2019P — $0.71 (↑ 18%)
4) 2020P — $0.82 (↑ 15%)
Quick math on linear TV ad revenue per hour assuming:
1) 12 minutes of ads/hour
2) 24 spots/hour
3) $25 CPM
4) $0.60/hour of viewing time
If we assume both figures above, then 1 hour spent in the Facebook news feed is delivering more ad revenue than 1 hour watching linear TV (100% video).
More #1: ‘Decent learning curve for them’: Facebook will need to adapt its pitch to crack TV upfront market
More #2: Facebook Watch has a new program to fund publisher shows starring influencers
More #3: Social Video Also Needs A Measurement Standard. Fortunately, Help Is On The Way
