Facebook (FB) is only days away from launching its own mobile advertising network, Re/code reports. Citing sources familiar with the matter, the publication says the social network giant will introduce its plans for a mobile ad platform at its “F8″ developer conference later this month in San Francisco.
Facebook, whose more than half of its ad revenue, which totaled $1.24 billion in Q4’13, came from mobile ads, will demonstrate its platform to publishers and devs as a way to leverage the company’s incredibly rich database of user information for more specific and effective ad targeting, says the report.
World mobile ad spending increased 105% to total $17.96 billion last year, according to research released in March by eMarketer. The mobile market is on pace to rise another 75% this year to $31.45 billion, accounting for nearly one-quarter of total digital ad spending globally.
Facebook’s new ad platform would allow the company to bring in revenue from its users even when they are not on Facebook – think any app on the App Store. Note, however, that the social network isn’t the only tech giant on the mobile ad space, as such a move would be a direct challenge to Google (GOOGL)’s AdMob ad network and Apple (AAPL)’s own ad platform for iPhones and iPads called iAd. Twitter (TWTR) also has jumped into the frey of mobile-ad networks. The company announced last week it would be adding ads for apps to its Twitter apps and for its MoPub network. That said, Facebook has worked hard to get where they are now in the mobile market. And that effort appears to be paying off.
According to eMarketer, while search giant Google still owns nearly half of the market, grabbing 49.3% of mobile ad revenue last year, Facebook in particular is gaining significant market share. The social network took home 17.5%, a significant increase from the 5.4% it commanded in 2012.
Shares of Facebook gained 3.26% to $60.87 in midday trading Monday, putting them on track to extend their 52-week gains of 134%.