The largest social network in the world – Facebook Inc. is trying to get a better position on the mobile-application business, which is why it revealed some new tools and login options, as well as opportunities for application developers.
The launch of the new network is supposed to make Facebook more competitive , especially to Twitter Inc., which already introduced its own mobile advertising network earlier in April. It will also drive revenue from a larger audience.
The company’s Chief Executive Officer Mark Zuckerberg made a statement at the F8 conference, which was cited by Bloomberg: “This is really the first time that we’re going to help you monetize in a serious way on mobile. (…) By giving people more power and control, they’re going to trust all the apps that we build more, and use them more, and that’s positive for everyone.”
The mobile advertising network revealed by the company is called Audience Network. Facebook Inc. also revealed a new technology, called App Links, which is an innovative way to link applications together. The company explained that the trial of the network began in January 2014 and has already proved to be profitable for customers, some of which are The Coca-Cola Co. and Target Corp.
The company is hoping to attract more developers with its new mobile tools. Facebook started its mobile business at the time its initial public offering took place in 2012. Currently, mobile accounts are considered to generate about more than half of the overall advertising revenue of the company. The unit’s revenue was reported to have amounted to 1.3 billion dollars in the latest financial quarter.
Recently the company has been focused on generating revenue not only through its main application, but also confront some of its major rivals such as Google Inc. and Twitter Inc. Google has been trying to tag and index content in mobile apps in order to expand its reach beyond its own search engine. The Chief Executive Officer of Facebook – Mr. Zuckerberg said that the two companies are having different views, which doesn’t have to put Facebook and Google in conflict.
As reported by the Wall Street Journal, Mr. Zuckerberg said the goal of his company is to “enable people to share content from different apps”. On the other hand, according to him, Google “is more about searching in apps”.
Facebook Inc. added 2.80% to close at 59.78 dollars per share yesterday, marking a one-year change of +115.28%. According to the information published on CNN Money, the 40 analysts offering 12-month price forecasts for Facebook Inc. have a median target of 80.00, with a high estimate of 90.00 and a low estimate of 60.00. The median estimate represents a +33.82% increase from the last price of 59.78.
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