Facebook is working hard to grab mobile advertising share

Article Submitted by iClimber Social Media Marketing Blog.

A year ago Facebook went public raising more than $16 billion in a devastating IPO. The stock hit a bottom in September 2012. Even after a year later, the stock is still down 29 percent of the IPO price and the company has a market value of $65 billion behind comparable EBay. What is going on with Facebook?

The Internet is buzzing with negative revenue outlook for Facebook and many question its ability to generate revenue. Why is that? Mobile computing is growing leaps and bounds while desktop sales are slowing down. Yet 30 percent of Facebook revenue comes from mobile advertising and expects to capture more than 13 percent of the mobile advertising by the end of next year according to Bloomberg Businessweek. Google is Facebook’s main competitor in this market. Mobile advertising is very sensitive and Facebook and others are trying their best to balance advertising and service without alienating customers. Facebook bought mobile photo sharing service Instagram for more than $700 million which has over 100 million users and it will help Facebook to increase revenue in the future. According to the Internet, Facebook is looking into acquiring other mobile applications that will give more opportunities for advertising.