Facebook has around 850 million users. About half of the users access Facebook from mobile devices where Facebook does not show display ads. Today 85% of Facebook revenue from display advertising on a desktop browser and mobile traffic is not monetized.
That is a growing problem considering the portion of mobile traffic continues to increase. In its SEC filing Facebook outlined the following mobile related risk factors:
· Growth in use of Facebook through our mobile products, where we do not currently display ads, as a substitute for use on personal computers may negatively affect our revenue and financial results
· Facebook user growth and engagement on mobile devices depend upon effective operation with mobile operating systems, networks, and standards that we do not control;
· Increased user access to and engagement with Facebook through our mobile products, where we do not currently directly generate meaningful revenue, particularly to the extent that mobile engagement is substituted for engagement with Facebook on personal computers where we monetize usage by displaying ads and other commercial content
As the filing said: We do not currently directly generate any meaningful revenue from the use of Facebook mobile products, and our ability to do so successfully is unproven. Accordingly, if users continue to increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, our revenue and financial results may be negatively affected.
MMO also expressed the same concern and made case about monetizing search. One thing at a time.
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