New York Ad Week Reveals Facebook’s Problems

New York Advertising Week was very revealing, both about the state of the industry in general (existential angst), and about Facebook’s problems in particular. I predict by next year there not only won’t be a duopoly–that’s well on the way because of Oath and Amazon–but will be a considerably more open marketplace.

Facebook has begun selling video ads through a program called In-Stream Reserve. Similar to YouTube’s Google Preferred program, In-Stream Reserve puts a velvet rope around Facebook’s most prized video inventory and sells it as a standalone package. However, what Facebook considers prized programming may not match with advertisers’ expectations, especially among TV ad buyers who are accustomed to buying individual programs on linear TV and may be unfamiliar with Facebook shows like “Fear Pong” and “Truth or Drink,” which along with MaxNoSleeves are also part of In-Stream Reserve.

When Facebook pitched the program as a test earlier this year, it asked advertisers to commit to spend $750,000 over three months. The price tag has since dropped to roughly $250,000 over three months, according to two agency execs with knowledge of the matter. A Facebook spokesperson declined to comment on pricing.

And from Casey Newton’s newsletter, another problem:

“One, my people are mad at Facebook…