With its initial public offering (IPO) turning out to perform below expectation, Facebook was recently predicted to run out of business in the next five years according to some analysts. There are rumors of Facebook developing its own mobile phone but we’re yet to confirm if this is true and there’s no official statement from Facebook to confirm it. Despite the huge number of users on Facebook, it’s quite obvious this social networking site is a struggling company. With a higher number of its users on mobile, only a little percentage of Facebook’s total traffic actually converts to profit.
In a bid to monetize its mobile version, Facebook now enables ads on its mobile version. I was rather surprised this morning to see those sponsored ads on Facebook for iPhone app and had to check the site again using Opera Mini browser but saw the same ads.
This is a clear indication that Facebook now takes its mobile traffic seriously and won’t be losing opportunity to make some extra profit but this raises the question if this is actually going to work for the company.
According to a Research from eMarketer Inc, this may turn out very good for Facebook. It predicts that that Facebook Inc.’s mobile advertising revenue will quintuple next year.
Facebook keeps changing and as a matter of fact, some of these changes frustrate users. A number of people using Facebook Mobile now complain about lengthy posts showing in full instead of the summary they were used to. Some changes also came to Facebook mobile in the last few days apart from the ads displayed in the news feed.
The ads are labelled “Pages you may like,” embedded within the news feed. It’s understandable the company must make money to survive but based on my opinion, ads shouldn’t interrupt user experience. Placing the ads at the footer would’ve been nice, don’t you think?