It is therefore surprising to hear that Facebook Inc. has reported a reduction in advertising growth in its latest filing with the Securities and Exchange Commission. The figures are said to be indicative of the fact that that their advertising business is struggling to keep up with the shift to mobile devices.
Many people now access Facebook on mobile devices such as smartphones and tablets. Recent statistics issued by comScore show that consumers spent an average of 7 hours and 21 minutes using Facebook on their mobile devices in March 2012, compared with 6 hours and 31 minutes on their personal computers.
In light of this increased usage of mobile devices for social networking, it is of huge importance that Facebook brings its mobile ad facilities up to scratch. Although the company announced plans to sell mobile ads in February, fewer ads are being shown on mobile pages, as the company has said it does not want to sacrifice user experience for short term sales growth.
However, Facebook do appear to be dedicating time and money to improving their mobile service; a commitment reflected in its recent acquisition of photo sharing mobile app Instagram, which at $1 billion, was a hugely significant investment.
Facebook has more than 900 million monthly users, an enormous available market. If they manage to update their mobile advertising strategy, the marketing possibilities will be immense.