More than half of Facebook’s 845 million members use mobile technology to access the service, yet ads aren’t nearly as dominant on mobile as they are on the traditional platform.
According to the company’s S-1 filing, �We do not currently directly generate any meaningful revenue from the use of Facebook mobile products, and our ability to do so successfully is unproven.�
That’s about to change. According to a report by the Financial Times, it looks like Facebook is planning to ramp things up. The plan is to use “featured stories,” which are advertising messages in a newsfeed. Expect these to start appearing sometime in March.
No doubt, this should result in a nice spike in revenues — which will help the valuation of Facebook’s IPO.
But Facebook will face some challenges. Perhaps the most important is that Facebook does not control its mobile footprint. Instead, it must deal with huge companies like Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG). One imagines they would want a piece of the action from Facebook’s mobile ads.
– Tom Taulli, InvestorPlace.com
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