Facebook Again Hints At Ad Network With Test Of Mobile App Ads

Maybe the third time's a charm. Facebook is again conducting a test of running ads in other companies' mobile apps, in another sign that the social network could be mulling a wider advertising network of the kind that has brought billions of dollars to Google and independent ad networks.

Indeed, the latest announcement, made in a couple of blog posts by the company today aimed at businesses and developers, comes closer to a Facebook ad network yet. Given that at least two previous tests didn't produce such a network, though, it could be awhile before anything materializes. Here's what Facebook says it's doing:
As mobile continues to move to more app-based experiences, advertisers want to reach people spending their time in apps and developers need new ways to make money.
To improve the relevancy of the ads people see, provide even greater reach for Facebook advertisers and help mobile developers better monetize their apps, we’re running a small test to show Facebook ads in mobile apps. Our aim is to demonstrate even greater reach with the same power of Facebook targeting for advertisers both on and off Facebook.
While we have run similar tests in the past, this current test is more like a mobile ad network in that we are working directly with a small number of advertisers and publishers rather than an outside ad-serving platform.
The current test is limited to a few advertisers and partners, and we will share more details over the coming months.
Facebook already runs an ad exchange that allows advertisers to use their consumer data to run ads on Facebook. This test goes the other way, allowing advertisers to use Facebook data such as Page Likes and expressed interests to run ads on other mobile apps. They wouldn't necessarily look like Facebook ads.
While Facebook has clearly been thinking along these lines for at least a couple of years, there may be more urgency now. Twitter bought the mobile ad exchange MoPub in September, independent ad network Millennial Media has recently expanded its reach, and Google continues to advance on several fronts in mobile advertising, so Facebook needs to make sure it has the broadest possible offering.

Pradeep K Shukla
PGDM 2 Sem