Facebook in-stream ads, also known as in-feed video ads, allow businesses to promote video content directly within a user’s News Feed. These video ads autoplay when sound is turned on and stop playing when scrolled out of view. In-stream ads are an excellent way for brands to capture attention and increase video views. But how lucrative are Facebook’s in-stream ads? Let’s take a closer look at how in-stream ads work and how much money you can expect to earn.
What are Facebook In-Stream Ads?
Facebook in-stream ads are video ads that play automatically when sound is enabled as users scroll through their News Feed on desktop and mobile. They provide an immersive viewing experience and high level of visibility since they appear directly within a user’s feed. Key features of in-stream ads include:
- Video format – Video files uploaded by advertisers or created with Facebook’s video creation tools.
- Autoplay – Videos begin playing automatically when scrolled into view.
- Sound – Audio plays by default if a user’s device settings have sound turned on.
- Call-to-action overlay – Option to add an overlay with a call-to-action button.
- Linkable – Videos can link to an external website or Facebook page.
In-stream ads leverage the engaging nature of video content to capture attention as users scroll through their feeds. They provide a native ad experience that feels natural within the Facebook interface.
How Do In-Stream Ads Get Pricing and Distribution?
Facebook holds an auction which advertisers bid on to determine in-stream ad pricing and distribution. Key factors that influence cost and delivery include:
- Ad Auction – Advertisers bid against one another for placement. Higher bids win more competitive placement.
- Relevance Score – An ad’s relevance to the target audience impacts delivery and pricing.
- Engagement – Ads expected to have higher engagement can command higher pricing.
- Inventory – Available ad inventory affects opportunities for distribution.
In addition to bidding, Facebook charges on an effective Cost Per Thousand (eCPM) basis. The eCPM is the actual cost charged per 1,000 impressions delivered. It factors in elements like competitive bids and predicted engagement rates.
What Are Typical In-Stream Ad Rates?
In-stream ad rates can vary significantly based on factors like audience targeting, competitive bidding, and seasonality. However, average costs generally fall within the following ranges:
- Broad reach campaigns – $10 – $20+ per 1,000 impressions
- Highly targeted campaigns – $20 – $50+ per 1,000 impressions
Higher levels of targeting and optimization allow for more competitive bids and higher potential ad rates. Driving qualified traffic to content aligned with viewer interests provides better engagement.
How is In-Stream Ad Revenue Calculated?
In-stream ad earnings are calculated based on the following:
- Impressions – The number of times an ad is displayed. Facebook charges per impression delivered.
- eCPM – The effective cost-per-thousand charged for each 1,000 impressions.
- Engagement – The percentage of viewers who engage with the ad content.
To determine potential revenue, multiply estimated impressions by the eCPM rate. Actual earnings may vary based on real-world delivery and engagement. Optimizing based on performance data will maximize revenue.
What is a Typical In-Stream Ad CPM?
Average in-stream ad CPM rates fall within these general ranges:
| Targeting | Avg. CPM Range |
|---|---|
| Broad | $10 – $20+ |
| Narrow | $20 – $50+ |
With broad targeting, CPMs often start around $10. With interests, behaviors, and lookalike targeting, rates typically exceed $20 CPM and can range upwards of $50+ for highly qualified traffic.
What Campaign Objective Maximizes In-Stream Ad Revenue?
The campaign objective focused on driving video views will maximize in-stream ad revenue. Key points on the video views objective:
- Optimizes for the most video views at the best rate
- Rewards engaging video content and targeting
- Increases video watch time, viewers reached, and frequency
- Grows overall impressions and ad distribution
Bidding and delivery focus on showing your ad to audiences most likely to drive video views and longer watch times. This increases revenue opportunities through expanded impressions.
How Do You Increase Earnings from In-Stream Ads?
There are a few key steps advertisers can take to boost earnings from in-stream ads:
- Refine targeting – Use interests, behaviors, and lookalikes to hone in on lucrative audiences.
- Test creatives – Develop engaging video content tailored to your goals.
- Set competitive bids – Bid higher to win more auctions and increase reach.
- Optimize placements – Focus spending on best-performing placements.
- Analyze data – Continuously refine based on performance indicators.
Monitoring metrics like view rate, completion rate, CPM, and relevance score allows you to identify optimization opportunities. Improving ad relevance, bidding strategy, placements, and creative will steadily increase your earnings over time.
What is the Facebook Advertising Potential Reach for In-Stream Ads?
Facebook opens up significant potential reach for in-stream ads across both desktop and mobile:
- Desktop – Over 1 billion monthly active users.
- Mobile – Over 2 billion monthly active users.
This huge built-in audience presents a major opportunity for brands. And Facebook’s advanced targeting options allow advertisers to hone in on their ideal demographics and interests within this vast market.
What Level of Scale is Needed to Maximize In-Stream Ad Earnings?
While Facebook’s ad auction model means any budget level can potentially earn money, larger ad spend and scale maximizes revenue potential. Some guidelines on ideal spending for earnings growth:
- $10,000+/month – Higher budgets open up more competitive bidding and placements.
- $25,000+/month – This level creates greater optimization opportunities from expanded reach.
- $50,000+/month – Big brands can take over premium placements, targeting wide audiences.
Testing different budget sizes can help identify the sweet spot for maximizing your return on ad spend. Steadily ramping up investment as performance improves will scale earnings.
What Content Types Perform Best for In-Stream Ads?
Certain creative content tends to drive higher engagement and earnings results for in-stream ads:
- Entertaining – Humorous, dramatic, or suspenseful video stories.
- Educational – “How-to” tutorials, recipes, lessons.
- Snackable – Shorter length videos under 60 seconds.
- Interactive – Polls, questions, choose-your-own-adventure formats.
Videos should showcase your brand personality and provide value to the viewer. Leveraging data on completion rates helps refine which types of content resonate most.
How Does Seasonality Impact In-Stream Ad Performance?
In-stream ad performance often fluctuates seasonally, impacting potential earnings. Here are some seasonal trends:
- Q4 – Highest ad rates due to holiday shopping and campaign competition.
- Q1 – Decline in engagement post-holidays but rates remain strong.
- Q2 – Ad prices decline but engagement stabilizes.
- Q3 – Lowest ad rates but engagement rises gradually.
Planning campaigns, investment levels, and content around expected seasonal patterns allows you to maximize performance. Larger budgets help secure inventory during high-demand Q4.
What are the Pros and Cons of Facebook In-Stream Ads?
Key advantages and disadvantages of running in-stream ad campaigns:
Pros
- High visibility – Appear directly in News Feed.
- Video impact – Powerful, engaging format.
- Targeting – Reach defined audiences.
- Measurable – Track views, completion rate.
- Affordable – Flexible pricing and minimums.
Cons
- Ad blindness – Users ignore ads.
- Low completion rate – Short average watch time.
- Declining organic reach – Paid strategy needed.
- Limited length – Up to 240 seconds.
Optimizing based on performance data and testing creatives helps maximize the benefits while mitigating the limitations.
In-Stream Ad Formats
Facebook offers a few different formats and features for in-stream ads:
- Video – Uploaded video or created with Facebook’s tools
- Slideshow – Sequence of still images
- Canvas – Interactive vertical video
- Call-to-Action Overlay – Customizable CTA button
Slideshows work well for showcasing products, while canvas enables polls and questions. Overlays help direct viewers to take action. Testing different options can improve results.
Ideal Video Length for In-Stream Ads
Facebook recommends these optimal video lengths for in-stream ads:
| Placement | Ideal Length |
|---|---|
| Desktop News Feed | 15-30 seconds |
| Mobile News Feed | 15 seconds or less |
| Instagram Feed | 30 seconds or less |
Shorter video ads tend to drive higher completion rates. Ad relevance has a bigger impact on performance than length alone.
Tips for Optimizing In-Stream Ad Relevance
Boosting the relevance of your in-stream ads can improve performance. Useful optimization tips include:
- Align video content with audience interests
- Highlight key features and benefits
- Use captions and text overlays
- Show product/service in use
- Leverage emojis and polls
- Test thumbnail images
- Refine targeting settings
Paying close attention to metrics like clickthrough rate and relevance score allows you to isolate areas for improvement. Small tweaks add up to big results over time.
How to Measure In-Stream Ad Effectiveness
Key metrics to track in-stream ad performance include:
- Impressions – Number of times ad is shown
- Reach – Total unique viewers
- Frequency – Average impressions per person
- Views – Number of times video is played
- View rate – % of impressions that resulted in a view
- Quartile completion – % watched to 25/50/75/100%
- Engagement rate – % that clicked or engaged
Continuously monitoring performance data enables optimization of targeting, placements, bidding, budget, and creative. This drives greater efficiency and return over time.
Conclusion
Facebook’s in-stream ads provide a major revenue opportunity through video ads directly in the News Feed. While earnings potential depends heavily on factors like targeting and bidding strategy, individual campaigns can generate over $10 CPM with averages ranging from $20-$50+ CPM for highly qualified traffic.
Optimizing based on performance data, testing creative, ramping up budget, and leveraging seasonal trends will help maximize earnings. At sufficient scale, in-stream ads can become a lucrative channel and strong addition to an omni-channel paid social strategy.