Tags: Facebook | Mobile | Ads | tests

Facebook Testing Mobile Ads for Applications Made by Others

Wednesday, 19 Sep 2012 10:15 AM

Facebook Inc., seeking to boost revenue from marketing over wireless devices, is testing a service that places advertisements on mobile applications other than its own.

“Showing mobile ads outside of Facebook is another great way for people to see relevant ads and discover new apps,” Menlo Park, California-based Facebook said in an e-mailed statement. The service is part of a “small test,” the company said.

By placing ads on third-party applications, Facebook follows competitors, including Google Inc. and Apple Inc., in acting as a so-called ad network. The strategy would let it collect part of the revenue generated from mobile marketing and benefit from rising demand for ads that reach the growing number of people who download apps onto mobile devices.

Facebook, owner of the most popular social network, is under pressure from investors to do a better job wringing sales from mobile services. The company may claim only 2.8 percent of the $2.61 billion U.S. mobile-ad market this year, ranking it sixth, behind No. 1 Google, which is expected to have 55 percent of the market, according to EMarketer Inc.

Pandora Media Inc. is second, with 8.7 percent, and Twitter Inc. nabs the No. 3 spot, claiming 5 percent.

Facebook, which makes most of its money from advertising, didn’t roll out its first mobile-ad service until March. The company announced last month that it would let application developers target Facebook users on mobile devices.

Shares of Facebook rose less than 1 percent to $21.99 at 9:52 a.m. in New York. The stock has lost 42 percent since the company’s May 17 IPO.


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Facebook Inc., seeking to boost revenue from marketing over wireless devices, is testing a service that places advertisements on mobile applications other than its own.
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2012-15-19
Wednesday, 19 Sep 2012 10:15 AM
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