Why mobile matters- even if it is not paying off today
Here is something interesting from Facebook’s S-1 filing. Take a read ( it’s informative) and you will come across this.
“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.”
Yes. That’s Facebook’s own admission. A company at the brink of a $100 billion valuation.
So even with a cool $100 billion dangling in dreams, they know that they don’t really have skin in the game when it comes to mobile.
Now let’s rethink why they bought over Instagram for $1 billion, even though Instagram’s only claim to fame is a growing user base and some filters. No revenue strategy yet.
The only thing Instagram has is a completely mobile user base, who use the app only on mobile. Instagram does not even have a web interface.
In an application led, cloud communicating walled garden, it is the mobile app which will be in focus.
It is good to get some skin in the game today, where it would matter tomorrow.