Facebook to reportedly launch its own mobile ad network

Similar to Google’s AdMob and Apple’s iAds, social network Facebook is reportedly working to develop its own inhouse mobile ad network – to pitch ads to developers and publishers without having any need to outsource an ad-serving platform. The idea is to use Facebook’s vast user-database to better target/re-target ads – even outside its own properties.

This is according to Re/Code’s “multiple source” who have confirmed that the company is even expected to announce the development at the upcoming F8 conference in San Francisco, due to be held on April 30.

Re/Code also mentions that this development has come inline with Facebook’s earlier announcement it made in January. Under this, the company said that it is experimenting with ways to sell ads on other people’s apps. It described the test as “like a mobile ad network.”

Global Mobile Internet Ad Revenue in 2014 is estimated to grow by 75.1%, and Facebook and Google, together, are projected to control 68% of the total market. Where this new development makes perfect sense for Facebook – for Google’s digital ad business, it might create further market problems.

A recent report released by the research firm eMarketer moreover provided that in 2013, Facebook and Google together consolidated their places at the top of the market, accounting for more than two-thirds of mobile ad spending.

They accounted for over 66 percent of the world’s total mobile ad spending. But Facebook in particular is gaining significant market share. “In 2012, the company accounted for only 5.4% of the global advertising market. In 2013, that share increased to 17.5 %, eMarketer predicts it will rise again this year to 21.7%,” the report stated.

eMarketer Table.jpg

Facebook’s ad market share which stood at little over USD 3 billion in 2013, is now expected to eat into tech major Google’s mobile ad share, leave apart small players like Millennial Media and Flurry.

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The author can be reached at devesh@iamwire.com