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Facebook Revenue Could Be Affected By Growth In Mobile Usage

August 2, 2012

Lee Rannals for redOrbit.com – Your Universe Online

As Facebook users continue to adapt to using their smartphones to access the social network, Mark Zuckerberg and his staff have new problems confronting them.

According to Facebook’s 10-Q SEC document posted on Tuesday, the social network has seen a 23 percent increase in its mobile traffic from March to June.

The problem Facebook faces is that its mobile advertising cannot generate income like its desktop version software. So, the more mobile traffic the site sees, it could reflect poorly on its stock-value.

The Facebook document showed that 18.7 percent of its 543 million monthly mobile users do not even visit the desktop site.

On the brighter side of its SEC filing, Facebook’s monthly users in Brazil grew 146 percent this year to 54 million, and India was up 84 percent to 59 million.

The desktop version of Facebook shows up to seven ads per page, while the mobile versions accessed through tablets and smartphones shows only the occasional Sponsored Stories ad.

Facebook said that overall, the number of users using personal computers was essentially flat, but declined in certain key markets like the U.S. and Europe.

During the report, Facebook also pointed out that its overall U.S. growth was only 10 percent, while the global average grew 29 percent. Brazil had a 146 percent growth, and India grew by 84 percent.

Part of the lack of growth in the U.S. could be due to the fact that the social network has already tapped the market pretty hard since its launching. It´s also important to note that the U.S. was the first country Facebook was made available too back in 2004.

Non-U.S. Facebook users make up 81 percent of Facebook’s nearly 1 billion monthly active users. However, the U.S. audience brings in more revenues than the international side does. According to Facebook filings, 50 percent of the revenues made last quarter came from digital goods and advertising for the U.S. audience.

Mark Zuckerberg said during an earnings call that Facebook users who login through a mobile service are 20 percent more likely to log in daily.

In other Facebook news, the company finally turned on its App Center internationally, which was previously only available in English-speaking countries.

Facebook’s App Center debuted in June, and it gives users a new way to find apps, such as Pinterest, Spotify and Viddy. It also acts as another form of revenue by offering up apps available for purchase.


Source: Lee Rannals for redOrbit.com - Your Universe Online



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