By the end of March, Facebook will reportedly dive headfirst in mobile advertising. What does that mean for the network’s expected IPO, and others trying to compete in the mobile space?
First and foremost, it should give Facebook “a fresh source of revenue ahead of a possible initial public offering,” reports Bloomberg.
“Since mobile ad spend is predicted to reach over $1bn this year, and grow to $4.4bn by 2015 according to eMarketer, this could create a healthy additional revenue stream ahead of a suspected IPO from Facebook next year,” seconds Eonsultancy.com.
“If Facebook's really does put ads on its mobile device in March … it could set off a fascinating corporate strategy fight with Apple and Google,” proposes Business Insider.
“But Facebook could have a leg up on the two Silicon Valley titans,” NBC Bay Area points out. “The social network has so much data and so many users that it could, at least in theory, target its ads incredibly specifically.”
“Despite being late to the party, Facebook already has access to data of a large mobile user base that could help advertisers more accurately target potential customers than a mobile browser or app,” CNet notes. “Facebook says nearly half of its nearly 800 million users already log in via mobile devices, giving the network momentum in a market estimated to be worth $630 million.”
At least initially, Facebook’s mobile ad effort is expected to be modest -- with "Sponsored Stories" appear in users’ News Feeds -- “but their appearance will be significant,” adds BI. “Until now, Facebook apps on Android and iPhone have been completely ad-free.”
Writes VentureBeat: “‘Like’ it or not, Facebook mobile ads appear to be inevitable, even if they will create an uproar among the company’s more than 350 million mobile users.”