"Facebook Is a ‘Mobile Company,’ But Is That a Good Business? (Bloomberg)": YES: Facebook is the new Google (Davis).

The results just came out for Facebook showing that 23% of their revenue is now from mobile ad (up from 14%). The question is; is this good news?

The full article is here (Facebook Is a ‘Mobile Company,’ But Is That a Good Business? by Bloomberg)

My view is yes. For two reasons:

1. Consumers Pay: Primarily because in the mobile market consumers are happy to pay. Small amounts. But they pay. Comparatively to the Internet. Well, consumers expect everything to be free.

2. Measurement: the mobile channel is perfect for the automated measurement of actual customer behavior;  See this paper – Robert Davis and Laszlo Sajtos (2008), “Measuring Consumer Interactivity in Response to Campaigns Coupling Mobile and Television Media.” Journal of Advertising Research 48 (3): 375–391 . The idea of the LOOP model was conceptualised in 2003.

3. Ubiquitous Integration: the mobile channel is the link or coupling channel to all other channels. The mobile is now available on so many device types. What I mean by this is that when companies implement campaigns or services it always includes the mobile channel these days. So, like Google, Facebook now has a place in that integration of customer behavior.

I would go so far to say that when looking to the future; Facebook is the new Google. Why? Because Facebook has a stronger base of permanent social networks and communities of communityies. Google in my view does not have that strength of customer base. We could compare this to the historical rise of Microsoft against IBM. Microsoft’s market power grew from its customer/desktop presence.  IBM came to the consumer IT market from the wrong ‘tech end’. Hence, Microsoft WON.

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