Facebook mobile users braced for more ads

Charles Arthur writing in the Observer today explains how Facebook’s share price has bounced back thanks to an improved mobile offering. 

Analysts say around one in 20 items in a user’s Newsfeed is now an advert. This is the preferred revenue model as traditional banner ads just don’t work on mobile. Interestingly, all these commercial messages don’t seem to have annoyed users. Some predict that Facebook will push for one in 10 messages to be advertising related. Will this be too much? 

I agree with much of the analysis, it’s hard to see where Facebook will go next. If it’s a fad, it has had a decent run. But what we know is that there is always something better round the corner. My unscientific observations on the Singapore subway, which unlike in London has total net coverage, is that it could be in decline. Not sure about bigger markets like India. Of course in China where it is mostly banned. (Obv people VPN) 

 

Increased mobile usage boosts FB share price.


 

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