The world of mobile advertising and ubiquitous computing is still relatively new. Most companies have not had the time to optimize ad space or traffic, and in some cases, even begin to do so. The fact that tablets are loading the same mobile sites designed for smartphones demonstrates a serious lack of efficiency in this space that is hurting companies, especially Facebook Inc (NASDAQ:FB).
Business Insider predicted back in 2010 that mobile data traffic would grow 26x through 2015. This doesn’t just spell opportunity, but rather is a danger for companies that don’t adapt. As more people gravitate to smartphones and tablets, we are increasingly forgoing the desktop to the access the Web. Between 2008 and 2011, the percentage of U.S. adults who accessed the Internet from PCs every day grew to 62% from 54%. In the same period, the percentage of daily mobile Internet users rocketed to 26% from 4%, according to Forrester Research.
Even after its IPO crash, Facebook Inc (NASDAQ:FB) is still a Wall Street gem. Despite the company’s perils, mobility is key, since the company is earning only 15% of revenues from mobile devices.
Facebook Inc (NASDAQ:FB) advertisers can now choose which mobile devices their ads appear on, and is making a big bet on the app market. Facebook has been allowing all developers to buy mobile app install ads to appear on mobile feeds. The more Facebook optimizes, the more it will make in the mobile sphere.
In my opinion, the hard numbers are not what’s important, but rather the direction. Facebook Inc (NASDAQ:FB) must overcome the stigma that it cannot capitalize on the mobile market. Once it shows it can, and with at least steady growth in the mobile sphere, it will have overcome major downward pressure on the stock price.
The Mobile Newspaper
The social network has been quietly working on a service, internally called Reader, that displays content from Facebook users and publishers in a new visual format tailored for mobile devices, people with knowledge of the matter said, aiming to become a newspaper for mobile devices. It’s unclear when Facebook Inc (NASDAQ:FB) will be ready to unveil the product, if it ever is, the Reader project is a sign the company is trying to get users to spend more time with it on mobile devices—and to see more ads.
It was recently announced that Facebook Inc (NASDAQ:FB) is testing what could finally bring it direct revenue from the mobile gaming ecosystem beyond advertising.
The company is working with a handful of small mobile game developers by offering distribution through mobile ads in exchange for a cut of revenue. Facebook confirmed it’s working on tests for new mobile game distribution, but hasn’t shared more details publicly.