Latest attempt by the social giant to make money from mobile.
Facebook is launching a new type of mobile advertising that will target users based on which apps they use.
The company will use Facebook Connect to track consumers' app use and tailor ads for them, according to a report in the Wall Street Journal.
The newspaper also said that, as well as looking at which apps are used, Facebook may attempt to track how those apps are used, but a final decision has not yet been made.
The plan is already generating discussions about privacy, as the scheme would go further than current mobile-ad networks, which track ads viewed by consumers on their mobile phone's web browser. However, the initiative will likely prove to be highly lucrative for Facebook, which is eager to monetise mobile as more and more users access the social network from their smartphones.
The ads, slated to be announced next month, will appear on mobile devices in Facebook's News Feed and it's hoped that the company will allow users to opt out of receiving the targeted adverts.