Facebook Inc (NASDAQ:FB) announces the new strategy
to grow its new ad products for the app developers.
The social network site has announced in a blog that
it will let the app developers pay to have ads for their apps shown directly
into a users’ mobile news feed. The ads will direct the users to an app store
where they can purchase that ad . The charges for app developers will be on
cost per click basis but later in a move to bring more revenues from the ads
Facebook Inc will charge the app developers each time their app is downloaded.
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FB had in the last reported quarter posted growth in
advertising revenue of 27.8% yoy on an increased ad pricing growth of 9% yoy on
the ramp in Sponsored Stories and News Feed ads, which drove higher conversion.
But, the Company still could not achieve the
expected ad growth (ad growth in the quarter was 18% yoy) and ad impressions
continued to grow more slowly than users, largely due to increasing Facebook
usage on mobile devices.
Also, with the loss of Wildfire, the preferred app
developer of Facebook site, to Google last week has raised a new concern for
the social network site. The preferred app developer have been developing
applications for the social networking site for four years and had posted
revenue leap of 300% in FY 2011.
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Shares of Facebook Inc (NASDAQ:FB) were down 5.47%
at $20.72 after soaring 15% in the past two trading sessions with trading
volume being 36.78 million shares.
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