It is certainly no secret that Facebook has been betting heavily on mobile ads in recent years. In the 4th quarter of 2013, they brought in $1.25 billion in mobile revenue, which is over half the total ad income. According to recent reports, it seems that they will be doubling down on the mobile ads. They will apparently be announcing a Facebook Ad Network during the F8 developer conference, which takes place later this month in San Francisco, CA.
While few details exist about the ad network, it is a logical move for the social giant. They already have one of the largest databases of user information in the world, which can be used to deliver highly targeted ads. They already use this for ads displayed on Facebook, but with this network, they will be able to target users who are using other apps as well.
They will be jumping into an already compeditive environment. Google has the popular AdMob mobile network, and Apple has iAd mobile advertising, both of which are very popular and successful. Facebook, however, should not have any problems getting their share of the mobile ad network revenue. They already have name recognition, and many app developers will see a lot of value in adding the Facebook mobile ad network to their systems.
In addition, mobile ad spending is growing at a very rapid pace, so Facebook can easily jump in without having to steal away too much money from Google, Apple or the other smaller networks. In 2013, world mobile ad sales reached $17.9 billion, which is a jump of 105%. It is expected to grow another 75% this year, reaching as high as $31.45 billion.
Facebook already controls 17.5% of the mobile ad revenue, and that is just by having mobile ads on their own apps and websites. When they expand this to other apps as well, they may be able to compete with Google, which currently has 49.3% of the mobile ad revenue as of last year.
