The first thing that came to my mind when I read the title "Facebook Mobile Ads Work" was - "What ads?"
As a recent convertee to the iPhone family, my Facebook usage has quickly evolved from desktop only to probably an even 50/50 split now between desktop and mobile.
In the desktop platform I barely notice the ads in the sidebar anymore and there is maybe 1 in 1000 that I will actually click. But that's not different for any other website I use - I very, very rarely click ads anywhere online.
I thought it was really interesting that "sponsored stories" have a higher click-through rate and earn more money per impression than the ads posted to Facebook's non-mobile version and that ads are slipped into the user's newsfeed and appear as content from their friends or pages that they follow.
The thing is I can't say I've ever noticed an ad while mobile browsing on Facebook and I definitely don't think I've ever clicked on one.
Now that's probably the point, and as you said "Users don't realize they're clicking on an ad".
As it shows here
there is a tiny bit of text in the mobile post that clearly states the ad is sponsored.
So with this new-found info I went back to my iPhone Facebook app and diligently searched for posts with the "sponsored" tag. I went through almost a days worth of newsfeed updates and yet I still can't seem to find any Facebook ads in my mobile feed.
So what does this mean? Zuckerberg and his team did only start testing out mobile ads in February... so maybe they haven't rolled it out for all users yet? Maybe I just didn't get any ads on this particular day when I was paying closer attention?
Who knows... at the end of the day it doesn't bother me if I'm not seeing any ads. I still remember 2006 when FB was clean and clear and I hope it doesn't fall victim to the cluttered spam that sent Myspace to the graveyard.