I’m not sure how it happened but I’ve become a mini-financial advisor for several of my Phamily members. As a result, I’ve been thinking a lot about Facebook’s latest stock surge which is more or less a direct result of their latest earnings report.
I won’t bore you with the stats but here’s my key takeaway:
41% of Facebook’s revenue came from mobile…and that number is climbing. Despite the fact that I routinely get dating ads for “Biker Chicks”, the ad model appears to be working. More importantly, the business model appears to be working.
I’ve come to realize that this has major implications, not just from an investor’s point of view, but also from a business,consumer, and advertiser’s point of view. Between Google and Facebook, they account for 70% of all mobile ad revenues. Estimates are that in 2013, Google will rake in $8B (double that of 2011) and Facebook will take in $2B in mobile ad revenue.
Two years ago FB had ZERO mobile ad revenue.
Businesses need to start planning their mobile strategy immediately…or not. I guess if you’re lucky you can always sell your dying business to Jeff Bezos.