The big advertising gambit for 2013 will be the roll-out of Facebook’s own mobile ad network as this will give networks the ability to serve ads placed with Facebook – and based on the social media giant’s user data – on third party sites and apps, says M&C Saatchi’s Inside Mobile Advertising: Top 5 Trend & Insights report.
How it will work is that when a Facebook user visits an app or site where the ad exchange has an agreement with Facebook, the exchange will check if there is a bid set to target them. If there is, an ad will be displayed and Facebook will receive its cut.
“In theory this is an extremely exciting move, given the wealth of data Facebook can accumulate based on its users’ behaviour,” says the report. “But, it is the true value of this data that is in question. At present, for example, sponsored stories are first distributed to users who have chosen to be fans of an advertiser’s Facebook page. Fine. Thereafter, the ad is displayed to that fan’s network of friends, whether they liked the advertiser’s page or not.”
Facebook doubled its mobile advertising revenue in the fourth quarter as more social networks migrated to smartphones and tablets. CEO Mark Zuckerberg said he thought his company would be able to make more money for each minute people spend with Facebook on their mobile device.
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