POP - PATIENCE ON POYNT
Meeker on why Facebook’s having trouble making money on mobile
May 30, 2012, 12:20 PM
Mary Meeker, the former Morgan Stanley Internet analyst who now works for the Silicon Valley venture capital firm Kleiner Perkins, opened the second day of the D10 conference in Rancho Palos Verdes, Calif., with an in-depth look at the sharp growth of the mobile Internet – and why companies such as Google and Facebook have been struggling to make money off the shift.
In a rapid-fire presentation on Wednesday morning, Meeker pointed out that CPMs, or the cost per impression metric that is crucial for advertisers, is five times lower on mobile platforms than it is on desktop computers. She also noted metrics at major Internet players such as Google GOOG+0.02% and Facebook FB-0.07%, such as cost-per-clicks and annualized average-revenue-per-user, or ARPUs, that show those companies struggling to monetize their users over mobile platforms, even though the number of users accessing the Internet over mobile devices is growing faster than those using desktops.
She sounded a hopeful note, though, saying the mobile ad market is still in very early stages, so companies are likely to figure out how to make money more efficiently in this business.
“These companies will be fine. But it will take some time before mobile comes to the same monetization level as desktops,” Meeker said.
She also called the recent IPO of Facebook a “financial share tsunami,” noting that the huge amount of shares in the offering combined with the technical problems on the Nasdaq combined to dent the social network’s debut, adding that “confidence and momentum in markets is so important.”
She added, though, that Facebook “is a great company that will do well over time.”
-Dan Gallagher
https://blogs.marketwatch.com/thetell/2012/05/30/meeker-on-why-facebooks-having-trouble-making-money-on-mobile/
Guys, I just believe we need to have patience with our Poynt platform, Its just not us who's in the red!!!