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February 7, 2012

Facebook To Monetize its 550 million Mobile App users






Users of Facebook‘s apps — for Android, iPad and iPhone — may begin seeing ads as soon as early March,  which  is one of the ways Facebook will monetize as a source of revenue. Many Facebook users login through the social media’s mobile app for smart phones, and the service has been advertisement free---but that’s about to change, Reuters reports.

Up until this point, Facebook had not effectively made money off of the service, according to Fast Company .

Facebook is reportedly in talks with undisclosed ad agencies about displaying “feature stories” in the mobile news feed. These ads should appear on the mobile application in March.The extra source of revenue  is expected to raise $5 billion 

When Facebook filed its $5 billion IPO last week, one of the interesting tidbits to come out of its S-1 filing was the fact that the social network had 425 million mobile users, but was not making any money on them.



Facebook  had a trial run on  running sponsored stories in December 2011. Featured stories will appear in the mobile news feed — similar to Twitter’s promoted tweets — mixed in with posts from your friends.

Facebook's Feb. 1 IPO filing revealed that the company had more than 425 million monthly active mobile users  which makes 50% of its worldwide user base.
In Facebook’s paperwork for its Initial Public Offering, filed Feb. 1, the company pointed to mobile as a potential revenue source — and warned that the lack of mobile revenue was one of the things that could harm it. Nearly half of Facebook’s 845 million users access the site via mobile device.