The move is set to put the social media company in the front of the mobile advertising market.
In September of 2012 Facebook began to test its new mobile ad campaign for target ads to app stores and web sites. The idea is to bring a more relevant ad to each individual mobile device user, without filling up its own apps with more ads. Facebook decided to put it on the back burner after the attempt failed, but decided to bring it back to life in 2013 once they tweaked the program.
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The new version allowed advertisers and publishers to keep more of the money being generated off the ads on their apps. This new method proved effective for all three partners that were trying to put a foothold on the mobile ad market. After the 2014 Q1 earnings report, Facebook officially announced the ad placement program would go into full swing, calling it Fan Audience Network (FAN).
During the Q1 2014 earnings call, COO Sheryl Sandberg mentioned how the expansion of this ad program was providing a significant boost to revenue saying "We’re really pleased with these results and the level of execution in our ads business. The team is staying focused on each element of our monetization strategy: capitalizing on the shift to mobile, growing the number of marketers who advertise with us, and investing in our ad products."
"Mobile continues to be a big driver for us – and a big opportunity. Mobile comprised 59% of our ad revenue in the quarter, up six percentage points from Q4. We continue to believe this is because Facebook has the best mobile ad product in the market."
According to Techcrunch.com, Facebook will begin arranging deals with new and current advertisers. The ad space will be stored on each individual app instead of taking up space on Facebook's ad system. This will allow for them to push an extra 1 million plus ads onto the market, which will spread the revenue out between FB, the advertisers, and application owners.
Some ads will also be target specific by taking personal information off of peoples profiles to ensure they receive ads that are relevant to what they are interested in purchasing. This can include information people have volunteered on their FB page such as work history, education, hobbies, and location they live.
The goal for Facebook FAN is to send users ads that are more relevant to their individual needs, compared to advertising that is currently going on. They believe this will give them a jump on the market, and ensure they have the lead over other mobile advertisers when it comes to marketing.