Cyber Monday Sale! 50% Off All Access

Facebook Video Ads Coming to a Screen Near You Facebook will start testing its video advertising this week with commercials for the film 'Divergent.' The videos will appear in feeds and play automatically with the option to click for sound.

By Arjun Kharpal

This story originally appeared on CNBC

Stephen Lam/AFP

Facebook has confirmed it is testing video advertising, following media reports that it will roll out video commercials later this week.

The social networking website said on Tuesday that it would be promoting a series of videos for the upcoming film "Divergent" this week -- but stressed it was only a test run.

It comes after the Wall Street Journal reported that video ads would begin appearing in Facebook users' feeds on Thursday.

"As this is a test, we don't have additional details to share at this time, but rest assured we'll continue to refine this new way for brands to tell stories on Facebook," a company spokesperson told CNBC in an email.

The videos will run automatically in Facebook users' news feeds without sound; users will be able click on the video to hear the audio.

If the test is judged to be successful, Facebook will be in a good position to capture a share of the lucrative U.S. television ad space -- which is expected to hit $81.6 billion in 2017, according to PwC.

Earlier this year speculation that Facebook would introduce 15-second video ads surfaced, but it is unclear how long the "Divergent" commercials will be.

Facebook is looking to further increase its advertising revenue which saw a 66 percent rise in the third quarter of 2013 compared with the same quarter last year, with mobile advertising representing almost half of that figure.

But earlier this year, it struck a cautious note about advertising amid fears that an increased number of commercials would push users away.

The social networking giant must balance its drive for revenue with the user experience, according to Ian Maude, an online media analyst at Enders Analysis.

"So far there hasn't been a negative reaction from Facebook users and video advertising will really reinvigorated Facebook's business. The tricky part is getting balance between maximising revenue and not annoying users to the point they leave Facebook," Maude told CNBC.

News Assistant, CNBC EU News Digital Team

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Growing a Business

Her Restaurant Business Is Worth $100 Million — Here's Her Unconventional Advice for Aspiring Entrepreneurs

Pinky Cole, founder of Slutty Vegan, talks about going from TV producer to restaurant owner, leaning into failure and the value of good PR.

Business News

Elon Musk Still Isn't Getting His Historically High Pay as CEO of Tesla — Here's Why

A second shareholder vote wasn't enough to convince Delaware judge Kathaleen McCormick.

Legal

How Do You Stop Porch Pirates From Stealing Christmas? These Top Tips Will Help Secure Your Deliveries.

Over 100 million packages were stolen last year. Here are top tips to make sure your stuff doesn't get swiped.

Leadership

Leadership vs. Management: How to Understand the Difference and 6 Ways to Bridge the Gap

Here are the key differences between leadership and management, highlighting their complementary roles and providing six strategies to develop managers into future leaders.

Business News

'Something Previously Impossible': New AI Makes 3D Worlds Out of a Single Image

The new technology allows viewers to explore two-dimensional images in 3D.

Business News

'I Stand By My Decisions': A CEO Is Going Viral For Firing Almost All of the Company's Employees — Here's Why

The Musicians Club CEO Baldvin Oddsson fired 99 workers at once over Slack for missing a morning meeting. But there's a catch.