Facebook Inc (FB) to Go Soundless in Pursuit of Better Advertisement Response Rates

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Facebook Inc (NASDAQ:FB), as we all know, relies heavily on advertising dollars as a majority of their revenue, so like other similar companies, they aim to find a way to maximize advertiers’ effectiveness via the platform. One such way, surprisingly is removing sound from video ads.

Sure, when it come to television ads, sound is a vital part, but Facebook Inc (NASDAQ:FB) has determined that when it comes to in-stream ads via their social platform, sound can be detrimental. Because of this, Facebook has now releasednew features for video ads, including automated captions so that users don’t need to be bombarded and surprised by loud, annoying advertisements.

“The value of your video ad—whether you’re measuring ad recall, brand awareness, or sales—happens quickly and increases with duration,” the company explained. “Facebook found with Nielsen that up to 47% of the value in a video campaign was delivered in the first three seconds, while up to 74% of the value was delivered in the first ten. With people’s growing control over what content they watch and for how long, the faster you communicate your message in a video ad and capture viewers’ attention, the better. That’s why today we’re introducing new features for video ads and sharing tips and examples of successful video ad campaigns.”
The stock is down 0.26% or $0.26 following the news, hitting $100.74 per share. Approximately 29.80M shares traded hands. FB shares have risen 17.92% since July 8, 2015 and are currently uptrending. It has outperformed the S&P500 by 27.39%.

From a total of 34 analysts covering Facebook (NASDAQ:FB) stock, 33 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 97% of the ratings are positive. The highest target price is $170 while the lowest target price is $88. The mean of all analyst targets is $125.06 which is 24.14% above today’s ($100.74) stock price. Facebook was the topic of 66 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Piper Jaffray maintained shares on January 28 with a “Overweight” rating. Suntrust Robinson maintained shares with a”Buy” rating and a $120 target share price in their report from a January 25. Stifel Nicolaus maintained FB stock in a recent report from January 28 with a “Buy” rating. Morgan Stanley maintained the rating on November 5. Morgan Stanley has a “Overweight” rating and a $120 price target on shares. Finally, FBR Capital maintained the stock with a “Outperform” rating in a report they issued on a January 28.

The institutional sentiment increased to 1.73 in Q2 2015. It’s up 0.01, from 1.72 in 2015Q2. The ratio is positive, as 69 funds sold all their Facebook Inc shares they owned while 375 reduced their positions. 126 funds bought stakes while 643 increased their total positions. Institutions now own 1.55 billion shares which is 2.48% more than the previous share count of 1.51 billion in 2015Q2.

Millennium Tvp Management Co. Llc holds 52.76% of its total portfolio in Facebook Inc, equating to 639,552 shares. Parametric Risk Advisors Llc owns 7.97 million shares representing 46.51% of their total US portfolio. Moreover, Sc Us (Ttgp) Ltd. has 41.15% of their total portfolio invested in the company, equating to 1.04 million shares. The California-based Meritech Capital Associates Iii L.L.C. has a total of 37.81% of their portfolio invested in the stock. Duquesne Family Office Llc, a New York-based fund reported 4.09 million shares owned.

Since February 25, 2015, the stock had 0 buys, and 32 sales for a total of $57.08 million in net activity. Athwal Jas sold 30,000 shares worth $3.06 million. Stretch Colin sold 1,000 shares worth $98,710. Cox Christopher K sold 5,778 shares worth $561,622. Schroepfer Michael Todd sold 31,283 shares worth $3.00M. The insider Fischer David B. sold 15,000 shares worth $1.43 million.

Facebook, Inc. is a social networking company. The company has a market cap of $290.94 billion. The Firm is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It has 78.1 P/E ratio. It offers various services focused on people, marketers and developers.

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