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Friday, May 11, 2012

Increased mobile use could decrease Facebook's ad revenue

Mark Bridge writes:

With Facebook’s stock market flotation expected to go ahead next week and a company value of between $77 billion and $96 billion being anticipated, the social network is putting the finishing touches to its paperwork.

It’s just filed an amendment to its original registration statement in which it warns that the increasing use of its mobile services may cause a problem. It’s not the technical infrastructure but the fact that Facebook’s mobile offering isn’t as well-established as its conventional web-based service. Facebook has previously admitted that it’s not making much money from mobile, which means there’s an obvious problem if people abandon the money-making web service for the mobile service.

Mobile ads have now been introduced - but at the moment they’re largely unproven on Facebook. And that could worry some investors.

“We had 488 million Monthly Active Users who used Facebook mobile products in March 2012. While most of our mobile users also access Facebook through personal computers, we anticipate that the rate of growth in mobile usage will exceed the growth in usage through personal computers for the foreseeable future, in part due to our focus on developing mobile products to encourage mobile usage of Facebook. We have historically not shown ads to users accessing Facebook through mobile apps or our mobile website. In March 2012, we began to include sponsored stories in users’ mobile News Feeds. However, 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. We believe this increased usage of Facebook on mobile devices has contributed to the recent trend of our daily active users increasing more rapidly than the increase in the number of ads delivered. If users 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, or if we incur excessive expenses in this effort, our financial performance and ability to grow revenue would be negatively affected.”

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Opinion Articles

This week at The Fonecast: 9th July 2011

Mark Bridge writes:

Roaming charges are back in the news this week. Not the latest round of price cuts (or, to be technically correct, lower price caps) but the European Commission's plans for the future. As well as continuing the downward pricing trend for a few more years, Neelie Kroes also wants wholesale interconnection at capped rates and the option of a separate 'roaming contract' when you travel abroad.

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The changing face of app stores

Mark Bridge writes:

When applications first hit the headlines, there were many stories about developers making small fortunes just from selling applications. Now there’s much more focus on promoting the app.

To understand what's changed - and to discover how developers get their apps noticed inside ever-expanding app stores - I spoke to Carsten Frien. He's CEO & co-founder of mobile advertising marketplace madvertise, a company that's based in Germany and has recently opened an office in the UK.

Author: The Fonecast
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Recycling mobile phones from Africa to Europe

Mark Bridge writes:

Recycling an unwanted mobile phone makes sense. It's good for the environment and it generates cash as well.

Newer phones recycled in Western Europe are likely to be reconditioned and resold locally, while older models may be reconditioned for use in developing countries. Damaged phones are either used for spares or are broken down for the metals and minerals in their components.

But what happens when people in those developing countries need to recycle their phones?

Author: The Fonecast
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The story behind the Pizza Express iPhone app

Mark Bridge writes:

Recently Pizza Express introduced a new iPhone application that lets customers book a restaurant table and pay their bill. The app was developed by 2ergo, a UK company based in Manchester.

Last week I spoke to Colin McCaffery, Product and Technology Director at 2ergo, to find out how difficult it was to get the app and the restaurant's own technology working together.

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RIM denies fire but admits to presence of smoke

Mark Bridge writes:

Anonymous opinions about technology are all over the web... and they're not always pleasant. PC versus Mac. Apple versus Android. WiMAX vs LTE. Even a relatively light-hearted rant can be misinterpreted. Still, if some unknown voice is trying to irritate you, you just ignore them - right?

Wrong. Not if you're Research In Motion.

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Recent Podcasts

Reviewing our 2015 mobile industry predictions... and looking forward to 2016

Podcast - 15th January 2016

Iain Graham, James Rosewell and Mark Bridge return to review their mobile industry predictions from last year. Which mergers, partnerships and developments did they forecast correctly... and which didn’t work out as planned?

Later in the programme, the team anticipates some of the topics that will be hitting the headlines during 2016.

Author: The Fonecast
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Podcast from Mobile World Congress 2015

Podcast - 6th March 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

Author: The Fonecast
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Looking back at February: from security scares to multiple MVNOs

Podcast - 27th February 2015

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

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Interview with Chris Millington of Doro about mobile retailing, wearables and technology for older consumers

Podcast - 24th February 2015

In today's programme Mark Bridge talks to Chris Millington, who's Managing Director for Doro UK and Ireland.

They discuss the state of mobile retailing in the UK, the future of wearable devices and - as you might expect - smartphones for seniors.

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

Podcast - 30th January 2015

We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

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