Facebook Inc (NASDAQ:FB) Can Earn More from Mobile Ad revenues


Facebook Inc (NASDAQ:FB) has not been able to do anything so far about monetising its mobile subscriber base, the major reason why it is seeing slowing revenue growth.

But all that may be about to change, according to Motley Fool.

Research firm eMarketer recently said that "Facebook's mobile-ad sales in 2012 will end up around $72.7 million, less than a 3 percent market share for domestic mobile ads and so far back that it can't even catch a glimpse of Google, whose Android platform has helped it dominate the mobile ad space with an estimated 55% slice."

According to Motley Fool's own estimation: Facebook could even bring in more mobile-ad sales than that, though, considering Mark Zuckerberg's comments on the last conference call that Sponsored Stories in News Feeds were already generating roughly $1 million per day in revenue, with half of that amount coming from mobile. That was as of the end of June, so mobile revenue of $500,000 per day for half the year comes out to roughly $90 million.

So surpassing eMarketer's estimates is possible for Facebook if Zuckerberg keeps the focus on News Feeds in the Sponsored Stories feature.

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eMarketer has also said that the social network’s mobile-ad sales will skyrocket to $387 million next year, more than five times its 2012 estimate, and enough to claim an estimated market share of nearly 9 percent.

in fact the research firm's analyst Debra Aho Williamson had told the Wall Street Journal that after this year, ""the experimentation phase will come to an end, and Facebook will figure out what works in mobile, both for the advertiser and the user."

Regardless of the specific estimates, the most important thing here is that Facebook is making progress on the mobile monetization front. That's long been derided as the social network's Achilles' heel and something of a dilemma as it focuses heavily on mobile development, Motley Fool said.
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