Monday, February 6, 2012

Facebook has taken the world by storm, since Mark Zuckerberg created it in his Harvard dorm room. The social media giant has nearly 900 million users worldwide and has seen considerable revenue through the use of its advertising. However, the creators of Facebook are struggling to convert their product into a viable application for mobile devices that generates revenue. The use of common ads has proven to be unsuccessful, because users find them to be annoying on a much smaller screen and therefore are far less likely to click on them. Facebook generates revenue everytime a user clicks on one of their featured ads. They are not satisfying this revenue stream with their mobile apps, therefore Facebook needs to figure out a way to incorporate their ads into their product layout. There is word however, that Facebook has looked to move into the smart phone industry. They have already collaborated with HTC on a mobile device with Facebook integrated into it, but this proved to be unsuccessful. But, with the recent backing of Twitter by apple, look forward to seeing Facebook pursuing the smart phone market with another manufacturer.