Facebook may be working on delivering advertisements to its mobile users, addressing one of the biggest concerns from the company’s IPO filing. Marketing agency Razorfish said in a Digiday article posted yesterday that it has been working with Facebook on a test program to deliver mobile ads. The firm had been working with Facebook for the past two years, looking at various opportunities in mobile.
The glaring lack of revenue from Facebook’s mobile business was one of the red flags that popped up when it filed an IPO prospectus on Wednesday. Although there are over 420 million monthly users the facebook mobile does not generate any revenue because Facebook doesn’t deliver ads to its mobile Web site or smartphone app. This was a red flag raiser at the IPO filling. Reports noted that advertisers could reach all devices with a single buy, so the ads would run across different devices, operating systems, and mobile browsers.
Depending on the user experience this may create some upset facebook users, but in the other hand this may create opportunities for companies to expand their services through facebook mobile. Future developers to advertise their newly developed apps, such results could contribute to more app buyers from advertisers and more add buyers for facebook.