There has always been a big question about Facebook that whether its mobile app benefits the company by anyhow or not. The accessing of Facebook through the mobile devices is increasing with dizzying pace. A majority of Facebook users are still access the website through their PC—where Facebook makes lots of money from ads served on its web pages. Facebook hasn’t yet started ads display on its mobile app, because these ads are considered to be a disruptive for the users’ experience. Facebook has just released its S-1 filing which provides a better picture of how the company is going to assert the mobile sphere.
Facebook has filed its S-1 form with SEC due to its intention to go public. S-1 filing is generally a security registration of Public companies with US Securities and Exchange Commission (SEC) as the registration statement under securities act of 1933. The company had more than 800 million users along with 425 million monthly active mobile users in December 2011. In S-1, the company has claimed that the Facebook application is the most frequently downloaded app across all major Smartphone platforms in US. It’s expected, due to a wide use of Smartphone, facebook application across mobile devices continues to grow especially among the youth.
Facebook states, “We also believe that younger users have higher levels of engagement with the web and mobile devices in general and with Facebook specifically. We anticipate that demographic trends over the long term may contribute to growth in engagement as a greater number of users will come from demographic groups that have grown up with the web and mobile devices and who spend more time online every day.”
The global mobile advertisement market in 2010 was $1.6 billion and it’s expected to witness six fold serge–$20.6 billion—by the end of 2015. The company has mentioned that there are lots of challenges in the advertising campaign on different mobile platform. The company is trying to develop new advertising and marketing product to meet the challenges from the competitors like Google and Apple in this space.
Facebook said that its mobile app effectiveness will depend on the contribution of other players such as Google and Apple—dominated over mobile OS—and also some popular are still not featuring “facebook” prominently. Facebook seems very aggressive about to generate its revenue from its mobile app, along with users’ experience.