Facebook Planning To Get Into Mobile Ads
Social networking company Facebook.com is planning on getting in the mobile advertising business by the end of March according to sources with Bloomberg. This would be an entirely new revenue source for Facebook before their potential IPO.
One of the ideas being considered is Facebook Sponsored Stories ads, which would feature a friends’ interaction with brands on the mobile News Feed. Facebook would have to quickly catch up to Google’s AdMob, Apple’s iAd, and Millenial Media.
Facebook currently has 800 million users and the company expects its next 1 billion users to come primarily from mobile devices. Over 350 million users currently access Facebook from their mobile devices.
Facebook is considering raising about $10 billion in an IPO, which would value the company at higher than $100 billion. Facebook’s revenue is expected to be as high as $6.9 billion in 2012. This year, Facebook will see about $4.27 billion in revenues. About 90% of these revenues are from advertisements according to research firm EMarketer Inc.