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.

Buying / Investing in Business

Big Investors Are Betting on This 'Unlisted' Stock

You can join them as an early-stage investor as this company disrupts a $1.3T market.

Buying / Investing in Business

From a $120M Acquisition to a $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

AI Could Cause 99% of All Workers to Be Unemployed in the Next Five Years, Says Computer Science Professor

Professor Roman Yampolskiy predicted that artificial general intelligence would be developed and used by 2030, leading to mass automation.

Franchise

The Compensation Strategy That Builds Sustainable Franchise Growth

When team members think like owners, they make decisions that protect and grow the brand for the long haul.