UPDATED 07:40 EST / APRIL 08 2013

Facebook Home’s Mobile Ad Strategy: A Bait-and-Switch Plan

When Facebook started sending out invites for a mobile launch event last month, the blogosphere exploded with rumors:  some pundits speculated that company is developing on a social OS, while others predicted that Zuckerberg will unveil homegrown phone. Last week, Facebook finally let the cat out of the bag.

The social media giant is hoping to capture mobile audiences with something called Home, an interface that sits on top of Android and keeps the user connected with Facebook at all times.  SiliconAngle contributing editor John Casaretto discussed the update on Friday’s NewsDesk segment (full video below).

Facebook Home consists of four components:  a Cover Feed that serves as a lock screen and home screen, an alert service, an app portal and Chat Heads, an IM service that notifies you of new messages with a pop-up that displays the sender’s profile picture.   The platform will become available in the U.S on April 12.

Casaretto says that on launch, Home will only be available for download on a few high-end Android devices and the HTC One, a purpose-built phone commissioned by Facebook.  The company didn’t mention plans for iOS version, which suggests that it’s looking to test the waters before taking the next step.

Mark Zuckerberg recently confirmed that this is indeed the case. When asked whether users might see ads in Cover Feed, the CEO said that yes – eventually.

“It’s a bait-and-switch situation because the ads are planned to be there but they won’t be there at first,” Casaretto says, adding that the success of Home will all boil down to the execution. “If you think about your Facebook experience there’s ads in there, and they can be pretty subtle. It’s a very fine line between what’s considered subtle…there is a lot to be seen on how they do that. On the flip side, some people like to be told about products that are relevant to them.”


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