Facebook is testing a new mobile ad product that will allow app developers to advertise their products on mobile news feeds.  

App developers will be able to purchase mobile ads that will appear as a recommendation beside apps that are coming up organically and will be marked as “sponsored”. 

These ads will click through to Android and iOS App Store purchase pages and will be charged on a cost per click rather than a cost per-install basis. 

Facebook started beta testing the new mobile app unit and revealed more details in its company blog yesterday. 

Facebook confirmed in June that 543 million active users accessed the site from a mobile or tablet device and said it planned to concentrate on mobile services. 

Facebook founder Mark Zuckerberg said: “On average, mobile users are around 20% more likely to use Facebook on any given day. So mobile not only gives us the potential to connect more people with our services, but it also gives us the ability to provide more value and a more deeply engaging experience.”

The news comes just a week after it was announced that Facebook shares had fallen 10%. 

Posted by 

Smarayda Christoforou