Can Facebook Figure Out How To Monetize Mobile?
February 2, 2012 at 8:29 AM (PT)
While most people were blown away by the news that FACEBOOK filed to raise $5 billion in an initial public offering YESTERDAY (NET NEWS 2/1), TIM GREEN at MOBILE ENTERTAINMENT found something to be concerned about -- writing, "FACEBOOK: We have no idea how to monetize mobile."
In FACEBOOK's IPO, they wrote, "We do not directly generate any meaningful revenue from mobile, and our ability to do so successfully is unproven."
GREEN reacted by noting, "it's still pretty sobering to read in FACEBOOK's own words of its uncertainty around monetizing the mobile channel. The firm admits that it hasn't worked out how to make advertising work on the channel, and that its activities are, to a degree, controlled by third parties."
Elsewhere in the IPO, FACEBOOK admitted, "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."
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