The video ads will play with no sound until the user interacts with them, just like videos posted by individual users. The ads will show on both desktop and mobile news feeds of those included in the test.
The first video ad on Facebook is for Summit Entertainment's upcoming movie Divergent, which is based on the book by Veronica Roth. Facebook hasn't disclosed the pricing of the video ads, saying only that they are "a premium advertising format on Facebook, intended to reach a large audience at specific times."
Facebook claims that it recently made improvements to its videos that resulted in more views, likes, and comments per video. The social networker is clear that it is still testing video ads. The feature may or may not roll out to all users and advertisers.
Facebook shares are rising 2% to $54.88 in Tuesday trading.
TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about its recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."