Wednesday, October 17, 2012

Facebook Inc (NASDAQ:FB) Rebound On Optimistic Report About Mobile Advertising

Shares of Facebook Inc(NASDAQ:FB) are trading higher by about 4.50% this morning as reports revealed that the world’s largest social networking site is performing better than estimated in making money from mobile advertising.

Shares of the company had been tumbling on severe criticism about the company’s potential to monetize the mobile advertising, where users are growing rapidly.

The company is “further along in monetizing mobile advertising” than is generally believed, according to Martin Pyykkonen, an analyst at Wedge Partners Corp.

On the other hand, An increased number of Facebook Inc(NASDAQ:FB) users are accessing the site through mobile these days. This is the key fact behind the growth of Facebook. However, a recent report from PageLever revealed that page owners require taking a closer look at mobile promotion since more fans are now coming from the mobile platform than ever.

As per the study that involved more than 500 different pages with minimum 1,00,000 likes, about 19% of new fans are coming from mobile as of month of August. That is compared to a mere 5% coming from mobile in the month of May.

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The study took account of mobile fans per total fans instead of measuring just mobile fans in order to ensure that such figures were not affected by fluctuations in overall fan growth.

It is still not cleat why has this figure jumped so fast. Whatever be the source of mobile likes, mobile ads or organic roots, they are growing exponentially.

The question remains. What could be the possible reason that is driving this flood in mobile-generated likes? Facebook’s mobile-only ads could be a pointer here. Rewinding back to June, Facebook had given its marketers the choice to target Sponsored Stories to just mobile news feed. Initially, advertisers could not specify exactly where their Sponsored Stories must show up. Facebook has also exposed Promoted Posts for pages. However, this works the same on desktop and mobile platform.

Earlier this summer, Facebook had unveiled a giant ‘like’ button spanning the whole bottom section of posts from pages on mobile. Presently, when one can see particular posts in the news feed on mobile versions, it is possible to like the page without having to navigate to the page. This could have been working as a driving force in the spike in fans that Facebook is experiencing with the help of the mobile platform.

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