Facebook plans to roll video advertising

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SAN FRANCISCO -- Facebook on Tuesday said it plans to begin video advertising, a move that takes aim at massive spending for television ads.

The social networking giant says marketers will be able to tap into video ads in a 'short amount of time.' Facebook is testing out an ad for the film Divergent this week.

Shares of Facebook rose 1.6% to $54.67 in morning trading action following the news.

'Big brands are eagerly awaiting to increase their FB spending through video,' says Brian Nowak, an analyst with Susquehanna Financial Group, who increased his price target to $68 from $52 ahead of the announcement.

Spending on television ads is expected to reach $68.5 billion this year, according to eMarketer. U.S. digital video ad spending is expected to soar 39.5% to $5.79 in 2014.

Facebook's video ads will begin running automatically across its News Feed but will remain muted until people turn on their audio. The new ad forms will begin on both desktop and mobile.

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