Facebook Inc. (NASDAQ:FB) continues to be focused on improving its presence and its revenue-creating opportunities on mobile, which is the fastest-growing part of the universe that is Facebook Inc. (FB). One recent testing opportunity that would allow some mobile app developers to get a foot in the door with the social network’s one billion users is moving out of the beta phase and just might be a solid opportunity for the network to establish some revenue on mobile devices like smartphones and tablets.
A recent piece highlights a new advertising opportunity for mobile app developers. Facebook Inc. (NASDAQ:FB) is taking its test program and expanding on it, giving game developers and other app developers an opportunity to buy advertising space on a mobile user’s news feed. When a user clicks on the ad, he or she is redirected to the Android or iOS App Store to purchase the game or app.
In a recent Facebook Inc. (NASDAQ:FB) developer page post, Vijava Raji wrote, “With these new ads, mobile apps and games of all sizes across any category can reach the right audience, at scale.” Raji boasted that several developers saw dramatic increases in sales through their Facebook Inc. (NASDAQ:FB) advertising, with TinyCo for example experiencing a 50-percent jump in click-throughs compared to other mobile avenues.
The opportunity here for Facebook Inc. (NASDAQ:FB) comes from the opportunity for developers to pay to advertise in a user’s news feed, even if users or friends haven’t necessarily “liked” the brand before. With its immense library of data about its users, Facebook Inc. (NASDAQ:FB) is able to help these advertisers target their ads to the audiences they wish to reach – the challenge, though, is to do so without adding too much “clutter” to an individual user’s news feed. If Facebook Inc. (NASDAQ:FB) can find the balance with this opportunity, it could be a nice revnue stream for the company to discuss with investors like billionaire fund manager Steven Cohen of SAC Capital Advisors when it holds its earnings conference call next week.