Although mobile may be all the rage among social media users, will this burgeoning trend actually work to the detriment of Facebook’s business model?
This week, Mark Zuckerberg and company revealed that growth in the number of mobile users on Facebook is expanding rapidly. But this user base is, which is exposed to fewer ads on the small screen, is tough to monetize. And that “may negatively affect our revenue and financial results.”
In an amended regulatory filing obtained by CNBC, Facebook says that the number of people logging into Facebook “is continuing to grow more quickly than the number of ads delivered.”
This implies that Facebook has room to grow in the still-nascent mobile advertising space.
Facebook is delving into previously glossed-over criticisms and concerns before the social networking giant finally goes public in the coming days.
CNBC speculates that the added paragraphs (in the regulatory filing) related to mobile usage probably came “in response to questions from investors.”