Reports show that both analysts and those claiming to be in inner Facebook circles are stating mobile advertisements are on the way. This move would pinpoint a time between when the group has announced its Initial Public Offering and the moment it goes live. With the Facebook IPO announcement having come just last week and the actual sale of stocks looking to be somewhere around May, this mobile ads project, should it prove true, would be a power move by Facebook to attain hype and interest by the time that stock drops.
And everyone knows that Facebook needs more hype, right? For a company that’s already worth billions, it’s hard to imagine any move on their part creating more hype than their mere existence already does – but here it is. Facebook’s mobile ads will likely take the form of an in-feed set of images and text. That means below the gallery of your friends’ cats and above your own status update of “I just ate a scone.” Analyst Zeus Kerravala of ZK Research noted the following on the situation:
“The valuation at IPO is based on basic company fundamentals and hype. Hype can bring in investors that might not typically participate in an IPO, and another revenue stream adds to Facebook’s long-term potential.” Karravala
Of course ZK wasn’t quite so kind when mentioning the potential for the advertisements themselves, noting how users across the Facebook spectrum would likely revolt at any sign of another change to their beloved user interface. Yet Facebook continues to change and Facebook continues to grow. We’ll find out how well this all worked out when May rolls around – will you buy in?