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.
David Meier owns shares of Facebook. Erin Kennedy has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.