Profit Drop: Facebook to inroduce Mobile Adverts?
Facebook is one of the popular social networking site which is used by almost world wide. Millions of users with huge hits everyday. Facebook has really got large number of users in its mobile based sites. After the increased number of users in smart phones, Facebook has become high value than ever. Most of the people who are in travel or people who can't reach a nearby computer for experiencing a social site.
Social sites are usually used for entertainment, sharing, business etc. Facebook earns from advertisements that were displayed on right sidebar of Facebook. But for now, Facebook doesn't displays any advertisements on their mobile sites. However, Facebook has started to display Sponsored Stories in the mobile site of smart phones. Advertisements in Smart Phones has increased the revenue of Facebook after the introduction of adverts on smart phones' mobile sites.
Users has now started to move from PC to mobile as per their schedule of work. Now-a-days, the users on Mobile has been increased where people not only use Smart Phone sites but also normal Facebook's mobile site which doesn't contain Adverts. Facebook has issued warning regarding this. Their profit has been dropped as the users moved to mobile site which have no advertisements. The advertisers has already reported to Facebook that the click rate has been decreased on advertisements on Facebook.
Now it has brought an issue of profit warning which could decrease their profit in future. Facebook has recently invested for the introduction of Instagram Apps and creating a Facebook Store. Facebook Store showed the popular Apps which could sell to bring profit.
Will Facebook introduce advertisements on Mobile? I guess, it might bring as Facebook is most worried in earnings and profit. Facebook is always clever in advertising things. You might have noticed in their site, how they sponsor advertisements. Sometimes, they show suggestions of friends, Pages or subscriptions but sometimes, they show Advertisements, thereby making the users to make notice of the area. If Facebook provides advertisements always in the right sidebar, users might ignore the area. This is what it happened in orkut from Google. They placed a Google Advertisement above the Friend list which was ignored by most of the people considering it as 'just adverts'. Facebook provides advertisers to advertise even their public post from their Page or promoting their page or selling their products directly by providing links.
What do you feel in this? Introduction of advertisements in mobile sites also lowers the speed of the site. Basically, a mobile site should be fast and simple as they use a GPRS or EDGE connection which can't be better than a normal Broadband internet connections. Share your comments here.