Facebook has, for now, shuttered the development of its advertising network, reports AllThingsD. Although the firm had been testing the system, its competitor to Google's omnipotent AdSense, with a view to putting Facebook ads on other developers' mobile apps, it's also put a stop to the plan of running ads on other publishers' mobile websites. A Facebook statement said it had "learned a lot" from the test but "our focus is on scaling ads in mobile news feed before ads off of Facebook."
The firm is pushing hard with developing the advertising side of its business, with the expected launch of video ads in users' news feeds coming early 2013. It's not known, however, whether the firm pressed the pause button because it is looking to buy an existing ad system--last month it was rumored to be in talks with Microsoft over the acquisition of Atlas Solutions--or whether the home-grown system needs more work.
With yesterday's news that Morgan Stanley, the bank that handled Facebook's IPO, was fined $5 million by Massachusetts officials, Facebook is thought to be vulnerable to similar legal challenges. Seems Morgan brokers allowed analysts to be privy to financial information that Facebook had not made available to the general public, which leaves questions about just how forthcoming the firm was in the run-up to going public.
[Image by Flickr user marcopako]