Facebook To Target Mobile Ads Based On App Usage

July 9th, 2012 by Trefis Team
FB: Facebook logo
FB
Facebook

Facebook (NASDAQ:FB) is reportedly working on a new type of mobile ad unit which would target users based on their mobile app usage patterns. 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. [1]

Check out our complete analysis of Facebook

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.

Relevant Articles
  1. American Express Stock Is Up 17% YTD, What To Expect From Q1?
  2. Down 37% This Year, Will Roku Stock Recover Following Q1 Results?
  3. Will PepsiCo Beat The Consensus In Q1?
  4. How Will An Expanding Postpaid Phone Business Drive AT&T Stock’s Q1 Results?
  5. T-Mobile Stock Has Traded Sideways This Year. Will It See Gains Following Q1 Results?
  6. With The Stock Flat This Year, Will Q1 Results Drive SLB Stock Higher?

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.

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. Facebook to Target Ads Based on App Usage, WSJ [↩]