Numbers Do Not Lie: Big Things, Small Packages

June 21, 2012

Big things come in small packages, and that is the challenge desktop internet is currently facing when compared to mobile devices. The mismatched growth in mobile usage and monetization now casts a shadow that looms over the internet industry according to Mary Meeker Explains the Mobile Monetization Challenge. Mobile usage hit 10% of the total global Internet traffic as of May 2012. That may not sound like much, but it was only five percent at that time last year.

According to Meeker, cost and ecommerce are playing a big role as:

“There are lots of places to find evidence of the mobile monetization gap. Effective desktop CPMs are five times the price of mobile Internet CPMs in the U.S.: $3.50 versus $0.75. And companies like Pandora, Tencent and Zynga currently report that average revenue per user is as much as five times lower on mobile.”

“Mobile e-commerce is 8 percent of the total e-commerce market in the U.S. Today, payments for and within applications account for 71 percent of revenue versus 29 percent for mobile advertising”

Right now there are over 1.1 billion global mobile 3G subscribers as compared to the 2.3 billion global internet users. The mobile device offers desktop accessibility with the added convenience of portability at a reasonable price. When you consider all the details, it isn’t surprising the hard number results favor the smaller package.

Jennifer Shockley, June 21, 2012

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