Facebook Inc (NASDAQ:FB) To Sell Advertising Space
Facebook Inc (NASDAQ:FB) is without doubt the most popular social networking site on the planet and with their acquisition of the Instagram mobile application, which allows users to share pictures from their smartphones, their domination of the arena seems complete.
Facebook Inc (NASDAQ:FB) is now looking to parlay some of this dominance into earnings by selling advertising space on the Instagram app. More and more persons are accessing internet services directly from their smart phones and with the popularity of Instagram, and Facebook by extension, the scope for exposure is huge.
Developers have been quick to point out that the advertising content will not impact the natural look and feel of the application, a concern that many users have raised over the years about web content. The information can be removed if the user is not interested and there will also be no obligation to make any purchases or complete any other activity that is not voluntary. Advertisements will be more complementary to the app and will be similar to what customers would expect from a magazine layout, for example.
If this effort is successful, it will help Facebook Inc (NASDAQ:FB) to further its mobile revenues which have seen a commendable increase in the last quarter. Mobile ad revenue has gone up from 30% in the previous quarter to 41 percent in this quarter but while this positive trend is in itself noteworthy appeal, Facebook Inc (NASDAQ:FB) is still running a distant second to the industry leader Google.
The users that are to be targeted by the advertising campaign are going to be the essential element in the success of the venture and upgrades to Instagram are constantly being done to ensure that the user experience remains of such a high quality that when the products and services of familiar companies are introduces the customer goodwill will be extended to them as well, resulting in a win for all parties involved.