LONDON (CNNMoney)– Facebook is rolling out a feature December 17 that will allow advertisers to play videos in users’ news feeds.
The feature offers companies a new way to promote movies and products on smartphones and computers, and is being tested with a small group of Facebook users.
“Rather than having to click or tap to play, videos will begin to play as they appear onscreen — without sound,” Facebook (FB, Fortune 500) said in a statement. When users tap the videos, the sound will turn on and the video will play in full-screen mode.
Investors cheered the news. Shares of Facebook (FB, Fortune 500) gained nearly 2% in early trading and hit a new all-time high on hopes that the new video ads will boost the company’s revenues.
Related: Instagram launches direct messaging
Analysts at Oppenheimer estimate Facebook could gain as much as $8.4 billion per year in revenue once the program is fully rolled out.
But don’t expect a flood of video to start clogging up your online experience just yet.
