updated 08:50 pm EST, Fri February 3, 2012
Facebook looks to plug weakness in revenue stream
Facebook may run mobile ads before its IPO takes effect. Its S-1 filing revealed that one of the company’s revenue soft spots was in the level of income generated from mobile devices. With mobile devices rapidly becoming one of the most common ways of connecting to Facebook and the Internet for users, the company looks to be moving quickly to address the perceived weakness.
Business Insider claims that an unnamed source has information that the company wants to demonstrate that it is capable of generating ad revenue from the 425 million of its users who access its site through smartphones and the iPad. ‘I heard it from five people in the Palo Alto office,’ said the source who requested anonymity because they ‘don't want to get them into trouble [and] I don't want to get in trouble either!’
The source added, ‘Obviously it depends on when the product is ready for release of course, though—time scales are not guaranteed by engineering on anything at Facebook.’ Whether the leak is legitimate, or even planted by Facebook, there is little doubt that it would be actively pursuing a mobile revenue strategy. By going public, the social network aims to maximize its value on launch.