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Facebook Offers Mobile Promotions Aimed at Boosting App Usage

Oct. 2 (Bloomberg) -- Facebook Inc., operator of the world’s most popular social-networking service, unveiled a mobile-advertising tool aimed at encouraging people to use applications already installed on their smartphones.

The new service links users to other apps via promotions that appear within Facebook’s main news feed, directing them to a specific product, such as a song or hotel booking.

Facebook is stepping up efforts to lure advertisers on mobile as more members access the service from smartphones and tablets. More than 40 percent of ad dollars came from wireless devices in the second quarter, up from about 30 percent in the previous period. While software developers have used Facebook ads to drive more than 145 million downloads of their apps, they need to keep users engaged and coming back, Menlo Park, California-based Facebook said in a blog posting yesterday.

“Our aim is to provide an end-to-end mobile solution that helps app developers reach the right people, acquire new users, keep those users engaged, and measure the performance of their campaigns,” Facebook said on its website.

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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