Facebook Targets Mobile Ads By March 2012
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Facebook will launch its mobile advertising unit by March next year, giving the social media giant a new revenue source ahead of its upcoming IPO, said sources close to the company in an interview with Bloomberg on Tuesday.
Facebook will launch its mobile advertising unit by March next year, giving the social media giant a new revenue source ahead of its upcoming IPO, said sources close to the company in an interview with Bloomberg on Tuesday.
According to Bloomberg sources, the social-networking giant intends to launch a version of their Sponsored Stories ads into the News Feeds of their mobile users, while incorporating any interaction made between the users’ friends and the brands.
Related: Facebook to Delay IPO Till Late 2012?
Related: Is China Looking to Invest in Facebook?
The company had originally expected to roll out the new advertising service on mobile devices earlier this year, but the plan had to be delayed said one of the interviewees.
The social network, with more than 800 million users, is increasing its focus on mobile technology as it aims to take advantage of the shift from smart-phones to tablet, noted the report. The company expects its next 1 billion users to come mainly from mobile devices, rather than through desktop computers. More than 350 million users already access Facebook through their mobile devices, according to the site.
When Facebook does eventually enter the mobile market, it will have to work its way uphill against other mobile advertising giants such as Google, Apple, and Millennial Media. In 2011, Google controlled about 24 percent of the $630 million US mobile display advertising market, with Apple’s share approximately at 15 percent.
When questioned by Bloomberg, Brandon McCormick, a spokesman for Facebook, declined to comment. The Palo Alto-based company though, is said to be expecting to raise about $10 billion for its much-anticipated IPO, that could come either before the end of this year or early next year.
The IPO could value the company at over $100 billion, said most analysts’ estimates.
Related: Facebook Co-Founder Eduardo Saverin Bets Big on Asian Internet
Related: Infographic: How to Land a Job at Google, Facebook or Apple
According to New York-based research firm EMarketer Inc is likely to see revenues of up to $4.27 billion this year. Almost 90 percent of this will come from advertising revenue, added the firm. Facebook also makes money from its Credits business, which takes a commission on transactions in certain applications, such as games.
By 2012, Facebook’s revenue could climb to as high as $6.9 billion, said the research firm.
