Top 2 mobile ad challenges Facebook faces

By IVCPOST Staff Reporter

Jul 25, 2013 03:00 PM EDT

Undoubtedly, Facebook's mobile ad business has grown. Facebook ads are paid advertisements that are "relevant and interesting" to a user. Currently, the internet giant has 819 million mobile monthly active users. It's a big audience, which was actually 71% of all active users. However, a monetization gap remained. Also, there were a few key issues left unanswered.

First, there was a tendency for Facebook to go overboard. Nate Elliot of Forrester Research said, "Facebook seems to have taken the affront of not being able to monetize on mobile a little too much to heart." With ads being one in every 20 stories on the newsfeed (5%), Elliot believed that Facebook may be "pulling the mobile ad lever too hard".

Despite being presented with these ads, Facebook reported that these had no significant impact on user satisfaction. However, perhaps the company's toughest challenge was to balance pressure from shareholders and consumers' ability to receive.

Another challenge Facebook faced was how to monetize its audiences from emerging country including the Philippines, Malaysia, and Indonesia. Facebook announced that it had more than 100 million users making use of app designed for simpler mobile phones. It seemed that most of its marketers came from the US.

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