Facebook Set To Introduce Mobile Advertising Within Weeks

With so much hype and news surrounding Facebook over the last few weeks, the company are set to further shake things up with the introduction of mobile advertisements over the next couple of weeks. The move is to tap into new revenue streams before it eventually goes public, which is expected to happen around May.

The Financial Times are reporting that several people familiar with Facebook’s planning say that it has already discussed proposals with advertising agencies, some of which involve displaying “featured stories” in the news feed, similar to how Twitter advertise on their main site.

Facebook said that putting ‘sponsored stories’ adverts – where brands pay to highlight people’s endorsements or interactions with them in their friends’ list of online activity – on mobiles was one possible route it could take.

In its IPO filing last week, Facebook stated to potential investors that the lack of ‘meaningful revenue’ from mobile devices, used by half of its 800 million users, could negatively affect their revenue intake as more and more users turn to smartphones instead of PCs to connect with friends.

The challenge for Facebook is finding the balance between satisfying their future shareholders with their rapid revenue growth and their users. The latter, judging by reactions to previous changes Facebook has made to their site in recent times, may be resistant to the idea of being bombarded by advertising on both desktop and mobile platforms.

Considering their 800 million users, it’s practically impossible to make changes without upsetting a portion, but the company must figure out the best way to incorporate adverts without breaking up the experience. The small screen and streamlined presentation presents numerous headaches for Facebook who, if they create the perfect formula, could be set to uncover a revenue goldmine.

Facebook are exploring other areas for increasing revenue, for one, it is also holding an event for marketers in New York on February 29th where they are expected to unveil Timeline brand pages for companies to avail of. Also The Financial Times say that the company may go further towards incentivising brands to post ads that link back to Facebook, rather than external sites.