Wednesday, October 24, 2012

Billion trickle down

Like an analyst explained in the middle of the Facebook IPO debacle before being silenced by the crowd: With so many users they -Facebook- are bound to find a way to profit. With a billion people registered, if they find a way to monetize just 10%, it becomes a 100 million revenue. And this is what they did. From nothing, Facebook now has 150 million in revenue from mobile advertisement.

It is not just Facebook. It is also the amazing alliances Facebook is able to forge now that they have so many investors and users locked in.

In the earnings call, they explained the vision: Mobile advertisement will resemble more TV advertisement with more videos and interactions than in the desktop. The last earning calls were about trying to figure out the new mobile advertisement. Probably, they were looking at the same channels as their desktop counterpart. Their Vision Quest has delivered answers, and it has trickled down from the Dream world for everyone to follow.