Facebook Introduces Ads In Their Mobile App: Risky Business?

Facebook turned around the whole social networking game when they introduced ads on the website. Over the years it has become a very profitable entity and at the same time has managed to keep its service absolutely free.

There has been a lot of buzz lately about the Timeline for brands after their official announcement. All brand pages will be shifted to the new look in 30 days.

The announcement is most important in terms of mobile advertising. They have announced that they will now show sponsored stories in the Facebook mobile news feed. This is very similar to what Twitter is doing with ads on its platforms. Twitter is adding promoted tweets straight in the timeline. This move has been received less enthusiastically by users on Twitter.

Inserting ads in mobile is a risk for Facebook and they have even listed their mobile offering as an investment liability in their IPO filing. Now, this is where the challenge lies for the giant which has already conquered most of the social networking world. Sponsored stories might work but they depend on the quality and types of those ads. People interact with brands more on Facebook than Twitter. A cleverly worded update with an image which can resonate with a particular type of audience may just do the trick for Facebook. Facebook will need to sort out its ad targeting mechanism and put the impetus on brand marketers to be creative with the ad content.

As far liabilities are concerned, Facebook doesn’t stand to lose much because of their large user base. Normally, after a feature change, Facebook sees a dip in engagement but slowly the changes are adopted by everyone and become the new standard. This is exactly what might happen here.

What are your thoughts on Facebook putting ads on its mobile apps?

3 Responses to “Facebook Introduces Ads In Their Mobile App: Risky Business?”

  1. March 2, 2012 at 1:36 pm #

    As we all know, Due to the popularity of Facebook, Most of us use our mobile for log in Facebook. it will definitely increase the profit of Facebook but lets hope it should not hamper user experience.

  2. March 2, 2012 at 9:49 pm #

    This is definitely one of the things which would make people fled Facebook … I have written a post and identified a few other decisions which could trigger the downfall of Facebook… Find it @ – http://gluelike.blogspot.com/2012/02/what-would-be-facebooks-jump-shark.html

  3. Denzil
    March 6, 2012 at 4:02 pm #

    It depends on how they can make ads aesthetic and natural looking in the mobile space. Read your posts. I echo your points on people transitioning from Facebook to the next cool platform like Path or Pinterest but Facebook is very different from its predecessors in terms of user base and engagement. It is still very dicey to say that Facebook is past its prime. The opposite might happen too! :)

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