Facebook's new mobile ads could be a $1bn moneyspinner
FACEBOOK, the social networking site that is soon to be floated, is expected to announce the launch of advertising on its mobile sites this week in a move that could rake in more than $1.2 billion (£758 million) a year.
The site, founded by Mark Zuckerberg (left), stands to generate most advertising revenue from the US and Europe as it looks to further monetise the social network ahead of its $100 billion initial public offering later this year, according to MobileSquared.
Analysts at the research firm said: “Facebook would generate $653.7 million (£413 million) from mobile advertising in the US alone over one year.
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“Obviously, the US is Facebook’s biggest market but it can still look to generate mobile advertising revenues of $166.6 million (£105 million) in its first year in the UK, about $100 million (£63 million) in France, Germany, and Italy, and $70 million (£44 million) in Spain.”
Facebook would generate $653.7 million (£413 million) from mobile advertising in the US alone over one year
MobileSquared added: “We expect this to be the most significant development to the mobile advertising industry to date.”
Facebook made $3.1 billion (£1.9 billion) in advertising revenue from its traditional online platform in 2011, a 69 per cent increase on 2010.
Advertising accounts for 85 per cent of Facebook’s total revenue.