Facebook to Enter Mobile Advertising Market by March Next Year: Report

by kefuiex599 on 2012-02-20 15:59:46

December 14, Beijing Time - According to two sources, Facebook plans to enter the mobile advertising market by the end of March next year, bringing new revenue to the company before a possible IPO.

The sources said that Facebook is considering a plan to place sponsored stories ads (a feature that interacts with brands friends like) into the mobile News Feed (news delivery). In the news feed, status updates, pictures, and content can be seen.

Facebook is the world's largest social networking service provider and will chase Google, Apple, and Millennial Media in mobile advertising. Facebook has a potential advantage as it can collect large amounts of user interests and friend information, more accurately targeting potential customers than mobile browsers and apps.

Facebook claims to have 800 million users and is increasingly focusing on mobile technology, aiming to take advantage of the smartphone and tablet trend. Previously, the company had claimed that the next billion users would come from mobile devices rather than computers. Currently, over 350 million users access Facebook via mobile applications.

One source said that earlier this year, Facebook had planned to launch new mobile advertising services for mobile devices.

Last year, Facebook launched a mobile deal service that allows businesses to offer discounts to potential customers based on geographic location.

Last month, a source said that Facebook is considering an IPO, raising $10 billion, with a valuation exceeding $100 billion. Facebook may IPO before the end of this year.

According to eMarketer estimates, Facebook's revenue in 2012 could reach up to $6.9 billion, compared to $4.27 billion last year. It is estimated that 90% of 2011 revenue comes from advertising. Additionally, Facebook earns income from virtual currency Credits, mainly through transaction splits from some programs, such as game programs.

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