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Yesterday, Facebook updated its filing with the SEC to warn that its ad rates will, on average, go down, now that it starting to sell ads on mobile.This has a lot of people worried about Facebook, suddenly, because mobile was supposed to be on of the company’s big growth opportunities. CNBC asked Henry about this problem earlier today, for example.
Everyone can relax.
There are two reasons this is not a big deal, according to BI Intelligence analyst Pascal Emmaunuel-Gobry:
- The disclosure was a risk factor in an S-1.Y ou have to have everything but the kitchen sink in there. It’s probably a lawyer who asked them to put it in there. The fact that it’s in there, by itself, doesn’t mean it’s a big deal.
- Right now, Facebook is not monetizing mobile AT ALL. Whatever it does there, it’s going to bring in more revenue. Worrying about smaller margins in mobile is like saying that mcdonald’s will make less money if it sells coke on top of burgers because cokes are less profitable.