Facebook users may not be excited to see video ads hit their News Feeds, but company stockholders should be. A report released by Morgan Stanley on Wednesday predicts that Facebook’s video advertisements will generate more than $1 billion in 2014 — a lofty total considering they don’t exist yet.
This total would constitute 1% of all television ad spending in the United States. Morgan Stanley predicts Facebook’s video ads could generate as much as $6.5 billion by 2020.
The report, which was compiled by analysts Scott Devitt, Jordan Monahan and John Egbert, is based primarily on media reports from sources like Bloomberg and The Financial Times. It predicts that Facebook video ads will first roll out later this year (a view widely held among reporters covering Facebook) and remain a U.S.-only feature through much of 2014
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