Is Facebook set to launch a Mobile Ad Network?

The Internet is abuzz amidst rumors that Facebook is going to create its own mobile ad network. Facebook is expected to announce this carefully crafted innovation at their F8 Developer Conference on April 30th in San Francisco.

If the rumors prove true, this would mean that the social networking company with over a billion users is going to leverage, as only they are able, their large collection of user data. Facebook users, by interacting on its platform, actually keep the company updated to some extent on changes regarding what they like and may purchase. That kind of insight is very appealing from a marketing perspective.

Facebook is already making a lot of money off of mobile advertising. According to their 2013 4th quarter financial report, “Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012.” The numbers break down to $2.59 billion in ad revenue and $1.25 billion representing that 53% share of mobile ad revenue. Make no mistake about it, even with $1.25 billion in mobile ad revenue, Facebook wants more.

That desire for more could come from having a true rival. Google, with its mobile advertising platform is the king of the mobile ad mountain. According to the eMarketer, “Net Internet Ad Revenue Share Worldwide” predictions for 2014, Google will have 46.8% of the market with Facebook coming in a distance second at 21.7%, and #Twitter coming in Third at 2.6%.

While the position of Facebook in the mobile ad market is clearly stated, what remains to be seen is what they may do to make up ground. The current Facebook mobile construct puts ads into the newsfeed, appearing to be one of your likes or friends, if not for the small “sponsored” indication below the post. With the potential for the creation of this Facebook mobile ad network, one has to ask what Facebook might allow (itself to do) in terms of redesign, and how users would react. How could this change their mobile site, app and messenger app?

By now, we all know the drill. Facebook changes its design. Many complain. Eventually (after about a week) it’s accepted. However, this pattern of evolution refers to things such as including a “cover photo” or changes to the “news feed,” not a possible addition or increase in visible advertisements.

Whether or not Facebook is going to make this change has yet to be confirmed by anyone at the California-based social media giant. No one has been made available for comment, and no press releases have been issues on this subject. However, that goes both ways as Facebook hasn’t come out and denied this mobile ad network possibility, despite widespread rumors and articles such as the one that you’re currently reading.

Could this change help you sell more cars? How this can relate to dealers depends, as it often does, on your marketing strategy. If you’re already using Facebook or Google for your web or mobile marketing purposes, you may watch this development to see how it may affect your active campaigns. By the same token, if mobile or Facebook marketing is a realm that you have hesitated to dabble in, it’s worthwhile to know that Facebook could make changes, and your time to start targeting potential customers may be on the horizon.

Finally, If you’re reading this and have a moment, I want to ask a question. I would like to know how the news of Facebook (potentially) creating its own mobile ad network could impact you or your dealership? Does mobile advertising matter to your dealership? I look forward to interaction on this subject in the DrivingSales Community.