London, Jan 11 : Shortly
after its historic IPO in May, Facebook (FB) stock lost half of its value as
investors became increasingly anxious about the social network’s ability to make
money from mobile advertising.
The stock has recovered some ground in
recent weeks because CEO and co-founder Mark Zuckerberg has publicly addressed
these concerns, according to David Kirkpatrick, author of The Facebook
Effect.
“People just needed to be convinced that Zuckerberg realized that
mobile was a big deal,” Kirkpatrick says in an interview with The Daily Ticker.
“He has made that extremely clear. They are explicitly putting mobile at the top
of the list in everything that they do.”
Effectively monetizing mobile
has become the core challenge for all websites and Facebook’s struggles to earn
revenue from mobile ads won’t go away in 2013, Kirkpatrick notes. But recent
efforts by the company to target its 1 billion global users on smartphone
devices and tablets could attract new advertisers. Facebook’s News Feed tool has
the most potential for mobile ad displays, according to Kirkpatrick, and
Facebook engineers are focusing on designing new apps and interfaces for mobile
first, with PC versions to follow afterward. Facebook’s problems are not just
how to increase mobile ads but also delivering and displaying them in a way that
are not intrusive or offensive to users, Kirkpatrick says.
Mobile
comprised 14% of Facebook’s $1.09 billion in total ad revenue in the
third-quarter and the company made roughly $3 million a day from ads shown in
its mobile News Feed.
According to eMarketer, Facebook could earn the
highest amount of mobile display revenue than any other mobile publisher next
year because of its ability to redistribute revenue from mobile to desktop. The
social networking site is also on track to reach 18.4% of the U.S. mobile
display advertising market in 2013.
Ends
SA/EN
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