Facebook is working on a location-based mobile advertising product.

As Facebook's VP of global marketing solutions, Carolyn Everson, explained to Bloomberg: "Phones can be location-specific so you can start to imagine what the product evolution might look like over time, particularly for retailers."

"We've had offers being tested over the last couple of months," said Everson, adding that there had already been "really significant interest" in the mobile news-feed ads Facebook has started selling this month.

Meaningful revenue

Facebook can boast more than 901 million users - 500 million of whom access the site from their mobiles - but the social network has so far found it difficult to monetise these mobile users effectively.

In fact, despite advertising being far and away the company's largest source of revenue, Facebook "does not currently directly generate meaningful revenue" through mobile ads, as revealed in the S-1 documents released in the run up to its IPO.

Facebook hasn't yet indicated when it might roll out any location-based mobile advertising product, but Mark Zuckerberg has promised investors that Facebook on mobile will be a priority for the company.

[source: Bloomberg]