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Facebook Tests Mobile Ads for External Apps Amid Revenue Hunt

Facebook Inc. (FB), owner of the world’s most popular social network, is testing advertisements for external mobile applications, potentially adding another source of revenue from wireless devices.

The effort comes after a similar experiment about a year ago that ran on mobile gadgets that the Menlo Park, California-based company called a “small test” at the time.

“We’re currently running a second test to show Facebook ads off Facebook in mobile apps and on mobile sites,” the company said in an e-mailed statement. “Our goal is to improve both targeting and relevancy of the ads people see. Since this is a test, we don’t have additional details to share.”

Facebook, which has more than 1 billion users, is looking for new ways to beef up its mobile-advertising efforts as consumers shift to smartphones and tablets. While the company got more than 40 percent of its ad revenue from mobile in the second quarter, Facebook remains a distant No. 2 in the market.

Google will capture about 53 percent of the mobile ad market this year compared with Facebook’s 16 percent, according to EMarketer estimates.

To contact the reporter on this story: Brian Womack in San Francisco at bwomack1@bloomberg.net

To contact the editor responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net

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