Google Inc (GOOG): 3 Ways Facebook Inc (FB) Can Make Money With Mobile

Engaging with brands
Not only does Facebook’s app have an enormous amount of users and massive potential for app install ads, but the company has another trend working in its favor — brand engagement. About 39% of smartphone users read posts from brands in their social media apps, and 47% do the same on tablets. To put those numbers in context, engaging with brands is the fourth most popular activity in social media apps. The graph below shows the distribution.


Source: comScore.

Brand and product engagement comes in fourth place behind reading a friend’s status, accessing a picture/video, and posting a status.

Facebook is constantly tweaking how companies can advertise through its app and with its recent updates to the News Feed and Graph Search, investors can expect that Facebook will continues to make updates and changes with advertisers in mind.

Slow going, but in the right direction
Facebook investors have been right to worry about the company’s mobile strategy in the past, but Facebook is finally starting to move in the right direction. Mobile revenue made up 23% of the company’s total ad revenue this past quarter, up from 14% the quarter before. While mobile ad revenues weren’t as high as some analysts or investors wanted, the company is just getting started with mobile and will need to time to get it right.

Investors may need to be patient with Facebook Inc (NASDAQ:FB)  as the company tries new ways of making money with mobile and tweaks current strategies. The mobile industry can be a tricky one to get right, and Facebook will likely have a few missteps along the way.

The article 3 Ways Facebook Can Make Money With Mobile originally appeared on Fool.com and is written by Chris Neiger.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Facebook, and Google Inc (NASDAQ:GOOG). The Motley Fool owns shares of Facebook, and Google Inc (NASDAQ:GOOG) Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.