Everyone has a mobile problem: not just Facebook
It’s the question that has dogged Facebook all year and likely contributed to its IPO fiasco: does Facebook have a mobile problem? According to Mary Meeker of Kleiner Perkins, it does: but then so does every Internet company trying to figure out how to make money in the mobile landgrab.
During her latest presentation on the tech landscape at D: All Things Digital, Meeker pointed out that the factors that caused Facebook to warn investors about how increased mobile usage is changing its business model are universal. Mobile traffic now accounts for 10 percent of overall traffic and overall mobile revenue is surging, but companies built around desktop-web economics are scared by the fact that mobile ads are seen as far less valuable: five times less valuable than desktop Internet ads, Meeker said. And even companies that have figured out how to get users to actually pay them for their products–think Tencent and Zynga–are taking in far less revenue per mobile subscriber than per desktop subscriber. That implies that companies born entirely of the mobile era might have an advantage, but not necessarily, as those companies haven’t really figured this out yet either.