Home > Paid Traffic Sources > Facebook & Instagram

Facebook Admits Mobile Shift Damaging Business Faster Than Expected (17)


05-10-2012 06:34 PM #1 rafael (Member)
Facebook Admits Mobile Shift Damaging Business Faster Than Expected

(Not sure what part of the forums to post this in.)

I find the huge explosion of mobile traffic amazing. The shift from desktop to mobile is even affecting a company as big as FB.

Link to the article:

Facebook has just admitted that the weak Q1, which was initially attributed to “seasonality” (a claim repeated personally by Zuckerberg live at the New York road show) is actually caused by its rapid mobile growth and their inability to monetize mobile. This shift is now badly harming the current quarter as well.
The article even claims this is one of the reasons for the sudden purchase of Instagram.

How can FB monetize mobile users?


05-10-2012 07:37 PM #2 Ryan Eagle ()

Simple: Adding advertising.
Not rocket science. You cannot monetize it without advertising, lol.


05-10-2012 09:44 PM #3 rafael (Member)

Quote Originally Posted by Ryan Eagle View Post
Simple: Adding advertising.
Not rocket science. You cannot monetize it without advertising, lol.
Yes but mobile advertising is not as simple as in the desktop space. This is FB we are talking about, not Angry Birds or Draw Something. I highly doubt they are simply gonna stick some banner ads in the FB app.
They have very little screen real estate to monetize, in comparison to the desktop. As mobile usage grows, they are gonna have less space to stick ads in front of people's eyes. This might definitely hurt their earnings.

This is just my humble opinion of course hehe


05-10-2012 09:59 PM #4 philme (Member)

Well I suppose most people would be using their app to access Facebook through their phones. What they can do is integrate maybe 1 ad at the top in the news feed so it loads at the top whenever people access their news feed to look at other peoples statuses and whatever, and the ads can be formatted so they blend well with the news feeds. I think this sort of integration won't really diminish the user experience and won't be as obnoxious as having a banner framed that is constantly showing as you use the app.

Obviously people will complain about it at first because everyone loves to bitch when something changes, but they will get over it.


05-10-2012 10:39 PM #5 zeno (Administrator)

In-line sponsored stories/ads. Put them in the news feed. Easy. Might have to restrict them to FB pages only to keep things uncluttered.


05-10-2012 10:56 PM #6 deondup (Member)

Quote Originally Posted by rafael View Post
Yes but mobile advertising is not as simple as in the desktop space. This is FB we are talking about, not Angry Birds or Draw Something. I highly doubt they are simply gonna stick some banner ads in the FB app.
They have very little screen real estate to monetize, in comparison to the desktop. As mobile usage grows, they are gonna have less space to stick ads in front of people's eyes. This might definitely hurt their earnings.
This is not really a problem. Like any other mobile site there is less real estate - 1 ad/page is all you get on an App. However, this is why CTR's are so high. There may be less impressions but with CTR's commonly reaching 2-5x that of web you will make it up that way.

If 40% of Facebook traffic in USA is mobile then they are missing a huge chunk of cash. I don't see what their problem is. Sticking an ad unit on their App. is not rocket science.


05-11-2012 02:50 AM #7 Ryan Eagle ()

Sticking any ad unit whatsoever is better than none, they can ease it up from thereon out. PoF can do it, so why not Facebook? PoF even quoted saying half their traffic (or may revenue) is mobile now.


05-11-2012 04:55 AM #8 dario (Member)

I feel wonderful every time I read bad news about FB's earnings


05-11-2012 04:58 AM #9 mgrunin (Member)

Quote Originally Posted by dario View Post
I feel wonderful every time I read bad news about FB's earnings
Why so? Even though I have a certified C&D from them, they've made me a great deal of money for me. Would rather see them prosper, especially when I buy 2,000 shares in their company next week.


05-11-2012 05:37 AM #10 dario (Member)

Quote Originally Posted by mgrunin View Post
Why so?
they don't want my money


05-17-2012 09:01 AM #11 dario (Member)

Another not-so-good news

GM Says Facebook Ads Don't Pay Off
http://www.guardian.co.uk/technology...rs-advertising

Also here
http://marketingland.com/wsj-gm-to-d...proaches-12111
http://online.wsj.com/article_email/...TExNDUyWj.html


Beside this, I honestly wish to people involved in buying the stock to make the best gain from it.


05-17-2012 10:55 AM #12 tijn (Moderator)

Im sure facebook has got somwething in the works and has been testing it.

1) their mobile clients are shit! notifications dont work and they are a pain to use -> its unlike them to not fix this which suggests to me they are putting all resources into a new client

2) facebook app store + new client = better use of fb apps and games on mobile platforms

3) pay for post exposure -> this was being tested in nz i think, where you could pay $1 and increase the reach of your post. This news feed items that have expanded reach

4) announcement a while about premium ads (sponsored stories) for mobile


Re: the IPO

* GM's announcement could have been a publicity stunt. They got more exposure from that announcement then they had from the ads and saved $10m

* Too much bad news in the week leading up to the IPO can not be an accident - these are carefully orchestrated events run by the best PR people and financial strategists money can buy. I dont know the end game but im sure there is one


05-17-2012 11:12 AM #13 dario (Member)

Quote Originally Posted by tijn View Post
* Too much bad news in the week leading up to the IPO can not be an accident - these are carefully orchestrated events run by the best PR people and financial strategists money can buy. I dont know the end game but im sure there is one
You're right,
and the end game could simply be "buy low, sell high"


05-17-2012 11:15 AM #14 tijn (Moderator)

yep! very possible./


05-17-2012 03:31 PM #15 kokofai ()

Tijn really has some sick point of view!

There are more things happen behind the scene and whatever we see and read from the news now are somewhat "surface". Facebook is such a huge beast and I don't believe the fact that they will fail to monetize the mobile traffic. As the saying goes, "if there is a will, there is a way". Furthermore, it's facebook! Not anyone else! With the amount of money they have, I see no reason they can't do anything they want while there are still "At the top" of the trend.

And I agree with dario, they want to "buy low and sell high". Let's grab some FB shares, if you are able to.

Heard that even if you have the money, it is very unlikely that you can buy their shares also. Having considered that so many hedge funds and financial institutions are going after it. Read more here --> http://stmforum.com/forum/showthread...-After-Its-IPO


05-17-2012 04:01 PM #16 marketone (Member)

Tijn is 100% correct. There is to much money involved and one of the most anticipated ipo's in a long time. Believe fb has something up its sleeve. No need to break any good news before the they go public. Save it for shareholders. A giant like fb has a plan and will monetize their mobile traffic efficiently. You can hate fb all you want but Marks a fuckin Genius! I dont do much advertising on fb. To scared, lol. I will how ever grab some stock if the opportunity arises. I use to trade and loved watching ipo's run.


05-17-2012 05:16 PM #17 tijn (Moderator)

You can hate fb all you want but Marks a fuckin Genius!
Some call him lucky....but my view is you create your own luck.

There have been enough vultures circling around facebook for a long time.

For him to retain over 50% of the shares is to me enough evidence that he is one shrewd and bright cookie!


Home > Paid Traffic Sources > Facebook & Instagram