Facebook's stock price has bounced back, and one reason for that could be a report that says the company plans to charge as much as $2.5 million for TV-style video ads that would be featured on users' News Feeds.
The social network plans to start selling the 15-second-long video ads later this year, according to Bloomberg. Marketers will be able to target their ads to users depending on age and gender. Depending on the size of the target audience, the price for each video spot will range from $1 million to $2.5 million per day, according to unnamed sources in the report.
These types of ads have been rumored for a while, but it was unknown how much Facebook might decide to charge for each ad per day.
Previous reports have said these ads will be shown in Facebook's News Feed, or the main center rail of the website where users can see updates from their friends and the pages they follow. The video ads are said to begin playing on their own without needing to be clicked on by users.
So as to not drive away users with an abundance of video ads, the report says, Facebook will ensure users do not see a commercial more than three times per day.
Facebook declined to comment.
The report comes as Facebook's share price has been climbing; Wednesday morning, the stock surpassed its $38 IPO price for the first time since it began trading in May 2012.