While many analysts currently bear a negative outlook towards Facebook Inc (NASDAQ:FB), analysts at Morgan Stanley (NYSE:MS) have taken note of a promising lineament that may finally pull the embattled company out of a familiar gutter.
A report compiled and published by Morgan Stanley (NYSE:MS) reveals that Facebook’s shift towards mobile is taking a turn for the better. Mobile monetization has begun materializing, and Facebook Inc (NASDAQ:FB) is heightening the tempo with regard to its mobile apps.
The report quotes, ‘Facebook Inc (NASDAQ:FB) has improved the speed and functionality of its mobile apps and appears to be monetizing more aggressively with mobile sponsored stories.’
The whole report basically revolves around the improved mobile outlook and highlights some interestingly overlooked aspects in Facebook’s mobile operational structure.
Here is an inside scoop of some of the major highlights in the report.
Bettered mobile user experience
In its attempts to improve functionality and probably lure in more mobile users, Facebook Inc (NASDAQ:FB) released updates to some of its IOS mobile apps at the end of last month; August 23rd to be exact. Similarly, the number of mobile sponsored stories has increased substantially in comparison to July. Back in July, the stories came in at 0-1 per day while at the moment the stories range between 2 and 6 per day.
Morgan Stanley analysts further note that mobile ads may be 4 times as valuable as desktop ads, tracing their outlook on increased click-through rates.
Noted elsewhere in the report is the gigantic number of active Facebook users and its domineering nature in the social networking frontier. With the inevitable shift from PC to mobile, Facebook Inc (NASDAQ:FB) users are slowly but progressively embracing the idea of mobile Facebook.
Steady trend
Back in 2007 and 2008, the number of mobile users was less than a paltry 1 percent of the total Facebook users. The number however increased by more than tenfold, leaping to 28 percent at the fall of 2009. At the moment, more than 50 percent of Facebook users access the social network through a mobile device.
In addition to that, the report indicates that the average user spends up to 16 minutes on mobile Facebook Inc (NASDAQ:FB) each day.
In conclusion, the report gives many interesting insights on the advancements made in Facebook’s mobile sector. There is a possibility that Facebook Inc (NASDAQ:FB) could reverse its lopsided fortunes, if at all it maintains its aggressiveness with regard to mobile monetization.
All the same, its main challenge arises from the need to maintain a perfect balance in its ads. It still has to devise a mechanism through which it can share information effectively, without necessarily infringing on the privacy of users.
