Thursday, April 7, 2011

Facebook Challenging Google (GOOG) (YHOO) (MSFT) (AOL) for Mobile Advertising Dollars?

It appears Facebook Mobile is ramping up its growth with the goal of competing for advertising dollars in the mobile space, challenging Google (NASDAQ:GOOG), Yahoo (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT) and AOL (NYSE:AOL) in the segment.

As of March 2011, Facebook Mobile has about 250 million users, up from 100 million in February 2010.

The battle is in search, text and display advertising. If Facebook is able to continue to expand at this type of rate, it could significantly boost the value of the company.

Facebook offers both cost per click (CPC), for which advertisers pay only when users actually click on the advertisement, and cost per thousand impressions (CPM), for which advertisers pay based on the number of times these advertisements are displayed on user pages.

Text and display advertising probably accounts for over 60 percent of the value of Facebook at this time.

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