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Video Ads Could Change the Game for Facebook Inc Investors

By Andrew Tonner – Mar 20, 2014 at 6:02PM

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Looking at the potential implications the addition of video advertisements could have on Facebook and its shareholders

Facebook (META 2.24%) has been on an absolute roll lately. The company seems to have convinced investors that its $19 billion purchase of WhatsApp makes sense, and it could ultimately prove right. On top of that, Facebook has also made meaningful progress on further monetizing its Instagram photo-sharing platform too boot.

With its shares soaring over 150% in the last 12 months, and expectations sitting sky high, it seems that Facebook can do no wrong in investors' eyes. And, in another recent move, Facebook appears prepared to continue to make good on its truly eye-popping financial potential.

Source: Facebook

Fishing in a bigger pond
Facebook has had video advertisements in the works for some time now. 

However, after months of rumors, video advertisements have finally rolled out to Facebook's advertising partners and will begin to appear in users' newsfeeds in the not-to-distant future. Investors should be jumping for joy as the market for video ads dwarfs the online advertising space by a healthy margin. In effect, this more than doubles the potential sales opportunity for the world's largest social network.

In the video below, tech and telecom analyst Andrew Tonner discusses the news, and what it means for Facebook investors.

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Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. 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.

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