Since early this year, Facebook (NASDAQ:FB) has been testing an ad network that allows sponsors to place ads on sites outside the social network. But according to a post in AllThingsDigital, the company has halted the effort.
For Facebook bulls, it’s not good news. An ad network would certainly be a nice revenue generator. Just look at how Google (NASDAQ:GOOG) has minted billions from its own ad-serving platform.
Yet it’s far from easy to create an ad network, especially in terms of getting buy-in from a critical mass of publishers and advertisers. Keep in mind that Facebook also wants to leverage its huge user-information database as well as find ways to capitalize on its mobile traffic. Oh, and the company may even buy an existing ad network, such as Microsoft’s (NASDAQ:MSFT) Atlas.
Despite all this, Facebook is still expected to launch its platform, perhaps in a few months.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.