Are Small Businesses Helped or Harmed By Putting Video Advertisements on Facebook?

Throughout the summer, Facebook has been educating small businesses on advertising on the social media giant with video content.

But as ad space grows continuously more limited and more expensive — and aren’t guaranteed to produce sales– are small businesses really benefiting from putting video ads on Facebook?

According to an August 6 Wall Street Journal article, the cost of advertising with video on Facebook grew by 123% over the last year, while ad impressions went down 25%.

And while some businesses are reaping the benefits of video advertising on Facebook, others — especially those with limited financial and human resources — are struggling with creating a successful social media-based video advertisement campaign on their own, the Wall Street Journal reports.

Currently, Facebook has approximately 1.5 million advertisers from small- to mid-sized businesses, according to an August 5 ReCode.net article. And when Facebook’s cost per ad is currently somewhere around $600,000, it remains to be seen if small businesses will be able to generate the funds necessary to pay for the ad space, let alone the cost of producing video content.