Facebook Mobile Ads to Generate 1.2 billion Dollars

18 February, 2012 Social Networks

Facebook


Amid all the IPO hysteria that has recently surrounded Facebook, the social network also made news by announcing it plans to introduce mobile advertising for users who connect to the site through a smartphone app. In just its first year, where the ads will only be active in six countries, that initiative could bring in more than a billion more dollars to the soon-to-be public company bottom line.


Specifically, moblie research group MobileSquared predicts that within the first 12 months after Facebook mobile ads go live, there will be a $1.2 billion revenue stream that did not exist before. That may sound impressive, but when you factor in the number of users who are active in the mobile Facebook world, that is only around $6.50 per user per year.


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