The inevitable has finally happened: Facebook (NASDAQ: FB ) will be rolling out video advertisements in users' News Feeds.
Facebook calls it a way for advertisers to "tell their stories." The videos will play automatically, but the ads will not have sound unless the user clicks on the video. The company has been testing this new ad format since September.
Motley Fool analyst David Meier believes Facebook's success lies in maintaining the balance between what users want and what advertisers need. He thinks Facebook's trove of data will help the company test and learn video ads, and enable the company to come up with the least disruptive way to feature video ads in News Feeds. Ultimately, David likes Facebook as a long-term stock pick.
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