NEW YORK (TheStreet) --Shares of Facebook (FB) are gaining 0.72% to $86.41 on Tuesday after the company rolled out its new cost-per-view feature that offers marketers an option to pay for video ads only when they're viewed for at least 10 seconds, The Wall Street Journal reports.
Previously, marketers were charged on a cost-per-thousand impressions (CPM) basis when their video ads were instantly shown. However, marketers wanted to make sure that consumers were actually seeing their video, rather than quickly scrolling past it, the Journal noted.
In response, the social network introduced the new approach and marketers can choose to buy either on a CPM basis and a cost-per-view (CPV) option, where the view is a 10-second increment.
"Facebook ads are sold on an auction basis, so it's possible marketers will wind up paying more for the 10-second option," industry experts stated.
A Facebook spokeswoman said, "We strongly believe in giving marketers flexibility over how they buy video ads," according to the Journal.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."