Tag: Facebook

Facebook could be showing more enthusiasm for mobile commerce

It is no secret that Facebook is looking to appeal more heavily to mobile consumers. The social network has begun seeing its place as social media dominator slip over the past year as a growing number of tech-savvy and younger consumers begin to look elsewhere for their social networking fix. Facebook recently identified mobile as its future, but the social network’s exact plans therein are still somewhat vague. Mobile commerce, marketing, and mobile games may be part of the company’s plans to solidify its grip on the often fickle realm of social networking.

Facebook acquires Osmeta

Facebook has announced its acquisition of Osmeta, a software startup with a focus on the mobile sector. The acquisition comes on the heels of the launch of the Facebook Home application. The app serves as a sort of faux operating system, changing the way a smartphone’s interface looks and functions. The goal of the application is to make Facebook ever-present in the lives of mobile consumers by, quite literally, making the social network the first and last thing people see on their mobile devices.

Mobile plans are not yet clear

Exactly what Facebook plans to do with Osmeta is not clear. Osmeta notes that it has been working on a large project for some time, but details concerning this project are equally unclear. The company currently accounts for 19 software engineers from varied backgrounds. There is speculation suggesting that Facebook has plans for a new mobile commerce application or mobile commerce features that will be incorporated into the Home application. Facebook has shown some interest in mobile commerce in the past and has even recently begun charging for certain services it used to offer for free; services that mobile consumers must pay for if they want to use them.

Facebook may eventually address mobile commerce

Like other social networks, Facebook is currently at a crossroad. The social network is becoming increasingly enthusiastic about the concept of monetization, while it is also facing strong feedback from its users who want to see the social network remain a free platform. Whichever path it chooses, the company will remain focused on the mobile space, which will eventually bring Facebook to confront the prospects of mobile commerce more aggressively.

Recent research reveals mobile publishers are overtaking mobile advertising networks.

One of the latest reports published by IDC found that social media marketing giants like Facebook, Twitter and Pandora, are now dominating the mobile ad market industry, which was previously controlled by Apple and Google, as well as other large and small mobile ad networks.

The report results show there has been a big shift in mobile advertising.

According to the study, social media marketing claims 52% of the display advertising space. Mobile publishers are no longer taking a backseat to the usual mobile ad frontrunners. Instead, the IDC report shows that they are consistent in their overtaking of the ad market. This is a significant shift in mobile marketing advertising trends.

Mobile advertising networks are anticipated to continue to lose market share to social media marketing.

The report not only highlights that social media marketing publishers are dominating market share, but that is highly likely they will continue to do so. Karsten Weide, IDC’s Vice President of Media & Entertainment, observes that “Networks, especially independent ones, are entering a difficult phase, in which, with an ever smaller share of revenue, they’ll have to compete with publishers, which will only grow in strength.”

The growth rates of the mobile ad market in the U.S. continue to drop annually. In 2012, the market increased by 88%, which is quite the drop from 2011 when its growth rate had increased by 125%. That being said, despite the decline in market growth, mobile advertising has experienced a major increase in terms of spending. Last year, total spending amounted to $4.5 billion which is significantly larger than the $2.4 billion total in 2011.

In addition, the proption of the market that was represented by mobile from among all online advertising was up from 7% in 2011 to 11% in 2012. As for the future, IDC anticipates a 55% to 65% growth rate for the mobile ad market and for the U.S. to spend about $7 billion in mobile ads.

Based on what was revealed in the report, it appears that with social media marketing gaining a lot of strength, mobile ad networks will need to prepare for stiff competition in the mobile ad market.