Facebook Is Planning On Television Advertising

Denver, CO, 08/01/2013 (Avauncer.com) – Facebook Inc (NASDAQ:FB) closed in the previous trading session at $36.80 after going down by 2.20% (or -$0.83). The intra-day range of the stock is $36.33-$38.31. The market capitalization of the company is $88.72 billion.

Advertising in the television has been the realm of television stations since a long time. However, many social networking sites are changing this thinking. The company, Facebook

is looking to change this and join AOL, Inc. and Google Inc. in the competition for this market. There are about 1.2 billion users who are enjoying Facebook free of charge. Therefore, the company feels that it can charge companies as much as $2.5 million dollars per day so as to air their 15 second spots. In this way, it can cash in some money for the company.

The advertisers of the television covet those who watch prime time television and there are number of users of Facebook who view its site within that time frame of advertisement. Last week when the Chief Operating Officer, Sheryl Sandberg, was on a conference call in order to discuss 2nd quarter results, he said that in the United States alone, during the prime time TV hours, every night, around 88 million to 100 million people actively uses Facebook Inc.

According to a research unit of Publicis Groupe SA, ZenithOptimedia, advertisers plan to spend about twice as much on television as on digital media this year.  Internet ads are expected to reach 22 percent of all media purchases and will garner $36.2 billion while TV advertising will garner 38 percent of all media purchases and about $63.9 billion. Hence, the company, Facebook intends to target that $63.9 billion.

The company is hoping that it will target nearly $70 billion which can be spent next year on television advertising. It is hoping to achieve this target through its partnership with Neilsen.