Facebook to target mobile ads based on app usage
This is one way for the social network to monetize its rapidly expanding portable devices user base.
Many popular mobile apps use Facebook Connect to quickly attract users and improve engagement by using Facebook's inherent social integration. Facebook Connect enables users to quickly use any app without the need for signing up for each separately.
With the new mobile ad unit, Facebook plans to target ads at users based on their app usage data using Facebook Connect. This could be a potentially lucrative revenue stream as Facebook could serve up ads for apps and drive downloads by using data for each user and suggesting apps and other products based on a user's interest, as indicated by the kind of apps and games they use.
With the mobile app economy set to further explode in coming years, Facebook could be looking at a potential gold mine. This could be one of the many ways in which Facebook can monetize its rapidly expanding mobile user base, which has been a concern that led to a drop in its stock price following the IPO. It would also tie in nicely with the recently launched Facebook App Center.
We currently have a $33 Trefis price estimate for Facebook, which stands just above its market price.
More from Trefis
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.