Facebook tests ad network business on other companies' mobile apps

SAN FRANCISCO Thu Jan 23, 2014 1:25am IST

Men are silhouetted against a video screen with an Facebook logo as he poses with an Nokia Lumia 820 and Samsung Galaxy S4 in this photo illustration taken in the central Bosnian town of Zenica, August 14, 2013. REUTERS/Dado Ruvic

Men are silhouetted against a video screen with an Facebook logo as he poses with an Nokia Lumia 820 and Samsung Galaxy S4 in this photo illustration taken in the central Bosnian town of Zenica, August 14, 2013.

Credit: Reuters/Dado Ruvic

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Facebook Inc (FB.O) said on Wednesday that it is displaying ads from a small group of marketers on other companies' smartphone apps, the latest sign that the world's No. 1 online social network is closer to launching an ad network business.

Facebook said that the test is currently limited to a "few" advertisers and mobile app publishers.

"Our aim is to demonstrate even greater reach with the same power of Facebook targeting for advertisers both on and off Facebook," the company said in a post on its official business blog.

Facebook generates the bulk of its revenue from ads that appear on its own pages and in the Facebook mobile app. It has experimented with offering ads beyond the confines of its own social networking website in the past, including an effort last year in which it partnered with other ad networks and a previous experiment with social game company Zynga Inc (ZNGA.O).

Ad networks, which distribute online ads across a constellation of independent websites and apps, typically share a portion of the ad revenue with their partners.

Selling ads that appear in mobile apps could provide Facebook with a new source of revenue by expanding the amount of ads it sells. In the current test, Facebook said it will effectively operate its own ad network.

Analysts expect Facebook, which has roughly 1.2 billion users, to report revenue of $2.34 billion for its fourth quarter next week.

Facebook declined to comment on the financial aspects, including any revenue sharing arrangements, of its mobile ad network test.

(Editing by Amanda Kwan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Wipro Results

People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro sees rosier end to year as U.S. clients spend

India's third-biggest software services firm Wipro Ltd , under pressure to improve lacklustre sales growth, said it saw a rosier end to the year as more confident U.S. clients increase spending.  Full Article 

Reuters Showcase

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Apple-1 Auction

Apple-1 Auction

Early Apple computer sells for $905,000 at auction.  Full Article 

No More Nokia

No More Nokia

Microsoft looks set to drop Nokia name from smartphones.  Full Article 

User Data Security

User Data Security

Apple CEO discusses security with top Chinese official amid hacking claims - Xinhua.  Full Article 

Patent Wars

Patent Wars

Big Tech winning battle with 'patent trolls'.  Full Article 

Record Season

Record Season

FedEx expects record peak volume of 22.6 million packages on Dec. 15.  Full Article 

Yahoo Earnings

Yahoo Earnings

Yahoo ekes out Q3 revenue gain despite display ad weakness.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage