Report: Facebook launching mobile ad platform next month

Facebook is poised to roll out a mobile advertising platform in early March 2012, a move intended to create a new revenue stream before the social networking giant goes public this spring.

Citing sources familiar with Facebook's plans, The Financial Times reports the company is pitching advertising agencies on what it calls "featured stories"--i.e., promotions inserted into user news feeds. "We currently do not show ads or directly generate any meaningful revenue from users accessing Facebook through our mobile products, but we believe that we may have potential future monetization opportunities such as the inclusion of sponsored stories in users' mobile News Feeds," Facebook wrote in its IPO filing last week.

Facebook will hold an event for marketers on Feb. 29 in New York City. The Financial Times states the company is expected to introduce additional advertising opportunities as it looks to persuade brands to increase their marketing spend across the platform. Facebook declined to comment.

Facebook plans to raise $5 billion with its IPO and will trade under the symbol FB, though it has not yet disclosed if it will trade under NASDAQ or the New York Stock Exchange. International Financing Review notes that Facebook's filing timetable indicates the IPO process likely will conclude in May 2012. Recent trading of Facebook stock on private exchanges points to a valuation of more than $80 billion; last year, the firm reported revenues of $3.7 billion, driven by online advertising and sales of virtual goods.

According to Facebook, worldwide users now exceed 850 million, with more than 425 million active on mobile devices. "We are devoting substantial resources to developing engaging mobile products and experiences for a wide range of platforms, including smartphones and feature phones," the filing states. "In addition, we are working across the mobile industry with operators, hardware manufacturers, operating system providers, and developers to improve the Facebook experience on mobile devices and make Facebook available to more people around the world. We believe that mobile usage is critical to maintaining user growth and engagement over the long term."

For more:
- read this Financial Times article (sub. req.)

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