You’ve probably seen lately the difficulties that Facebook is having on the stock exchange. Their shares hit an all time low this week, shedding some 50% of their IPO price. A major reason for that drop has been the sites difficulties with mobile.
The problem is two fold. Firstly more and more people are accessing Facebook via their mobile phone. Back in May it was revealed that Americans spend more time on the mobile version of Facebook than they do on the full version.
Whilst that in itself isn’t a bad thing, Facebook aren’t very good at monetizing the traffic that comes via the mobile version of the site. They conceded as much over the summer, warning investors that mobile revenues wouldn’t be very good. The problem was that Facebook have tried to use a traditional display advertising system, and of course when the screen is smaller, there’s much less space to display ads. They break that down as being 18% in the fraud camp, and 22% in the fat thumb camp.
It unfortunately joins a zeitgeist that’s been emerging over the summer. The BBC did a study showing that an ad campaign to attract likes to your Facebook Page is more likely to attract fake users than it is to attract real life human beings.