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Facebook Rolling Out Dynamic Streaming Ads

By Eric Volkman - Apr 5, 2021 at 7:16PM

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The social media giant hits a new all-time stock price high on the back of the announcement.

Facebook (META -0.79%), a company heavily dependent on ad revenue, is launching a new, next-generation offering for its advertisers. On Monday, the social media giant announced Dynamic Ads for Streaming, a product that laser-targets the growing legion of streaming video service providers.

"With Dynamic Ads for Streaming, when people see an ad for your service in their feed, they can swipe through the ad to see personalized, relevant titles they might be interested in, based on interests they've shown on Facebook and Instagram," the company wrote, referring to both its eponymous social networking site and its high-profile photo-sharing site.

"Audiences can also follow your call to action to start a trial or subscribe," Facebook added.

A couple on a couch watching and listening to a laptop PC.

Image source: Getty Images.

The company boasted that before Dynamic Ads for Streaming, advertisers were forced to promote each of their titles separately. That can be a big headache for a well-stocked streamer like Netflix (NFLX -1.37%) or Walt Disney's (DIS 0.56%) Disney+, two companies that not only have big libraries but are constantly premiering multiple big-ticket new movies and shows.

Facebook cited research from Kantar indicating that 64% of people considering a subscription to a streaming service are doing so based on its library, not an individual title.

Dynamic Ads for Streaming has a very limited advertiser base, even if it's growing. Still, it's an encouraging sign that Facebook is trying to stay one pace ahead of its rivals with a product that can be very useful to its target clientele.

Perhaps that's why the market pushed Facebook 3.4% higher Monday, to its new all-time closing high of nearly $309 per share. The S&P 500 index, meanwhile, increased by 1.4% on the day; Disney and Netflix essentially traded sideways.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Volkman owns shares of Facebook and Walt Disney. The Motley Fool owns shares of and recommends Facebook, Netflix, and Walt Disney. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
META
$179.47 (-0.79%) $-1.42
The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$124.96 (0.56%) $0.70
Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$245.69 (-1.37%) $-3.42

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