Facebook’s IPO and its challenges in Mobile Advertising
By on May 14th, 2012

As the Internet continues to evolve, it has started becoming available to us on everything from our TVs, mobiles, to tablets. Of late, there are many stories on how mobile surfing is becoming the next big thing. Consider this, how many of us catch up on the latest Facebook news from our cell phones? A lot it seems. Comscore has recently discovered that users access Facebook on the mobile for nearly 7 hours versus 6 hours on the computer.

In fact, Facebook CEO, Mark Zuckerberg, has openly laid out the importance of being able to generate revenue using mobile advertising and promotions in 2012. On his road show to pitch the highly sought after IPO (initial public offering) that is slated for next week, Zuckerberg  has said that Facebook’s key priorities in 2012 are to work on its mobile application, to build stronger ties incorporating its social network with other online apps, and to create a “transformative” advertising experience.

There are claims that the Facebook IPO has been oversubscribed. It will be interesting to see what value Facebook can bring to its investors to make it worth close to $10 billion. Facebook has claimed that its advertising business was generating more revenues as marketers have began spending more. However, this only works when its users access it from their computer browsers.

It has been claimed that social ads would be able to address the problem of revenue generation on its mobile app. These ads are small and better suited for mobile screens. They show you which of your friends “like” certain products. Given the amount of user information that Facebook has already collected, it will allow marketeers to target consumers more effectively.

The true value of any investment is based on its long-term prospects. While Facebook moving on as an IPO is truly ground breaking for this new genre of organizations, it still has to be able to provide more concrete plans on its revenue generation. Having said that, Zuckerberg has made good decisions in the past about Facebook, this may just be another one of those.

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Author: Edrea de Sousa Google Profile for Edrea de Sousa
A textbook twister and a writing typhoon. You can also catch me on Twitter (handle: edrea20).

Edrea de Sousa has written and can be contacted at edrea@techie-buzz.com.
 
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