FB posed to $1.2 Bn ad revenue, if it forays into mobile ads

February 20, 2012 17:05
FB posed to $1.2 Bn ad revenue, if it forays into mobile ads

FB is on the brink of making $1.2 billion ad revenue if it launches mobile ads, say experts. With its vast base the social network will make a fortune within a short span of its launch.

Stunning but true, say experts should the social networking giant Face book decides to foray into the mobile ads segment, is sure to reap in rich dividends. UK-based analyst firm Mobile Squared, which has worked out that Facebook will rake in $1.2 Bn annually in the mobile ads segment. The predictions of revenues are based on its penetration in US, UK, France, Germany, Italy and Spain.

As per the analyst quoted in Techcrunch, Facebook will be making an average revenue per mobile user of around $6.50 per year — some $2 more than Facebook currently makes per users online, using figures supplied in its S-1 earlier this month. The caveat here is that the modeling appears to be hinged on mobile display-style ads, while in truth it’s not known what Facebook will do when it comes to formats; and several reports have pointed to them first opting for something altogether different — sponsored stories.

A detailed analysis is projected by the company which summarizes the incomes levels in various countries as, The U.S. will account for roughly half of that revenue, at $653.7 million in 12 months, with the UK bringing in $166.6 million, $100 million in France, Germany and Italy, and $70 million in Spain. As of now, things look positive for FB to foray into the mobile ads segment. But how far it would add value to the manufacturers and how its followers would react to, is another unanswered question. All these would get the right answers only if the social networking site launches. (With inputs from internet: AarKay)

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