The deep analysis continues into Facebook's revenue streams as it prepares for the IPO and it has come to light that there are perhaps other reasons for their falling revenue.
Around half of FB’s 900m users regularly access the social network via the Smartphone App, however Facebook have yet to come up with a coherent advertising policy in a bid to generate income from mobile user.
Using the Desktop (web) interface users are presented with adverts and sponsored stories -- this is not transferred through to the mobile version. Given that Facebook's revenue mostly comes from advertising, this does seem like a glaring omission, and as more people use the mobile App this is clearly having an impact. I'm sure it will not be long before Facebook remedy this failing and we start to see adverts on the move!
In other news, the American Federal Trade Commission has begun a competition probe into the recent acquisition of Instagram by Facebook; this according to the Financial Times story. The Commission investigate all deals over $60m and this could delay the completion of the deal by as long as a year.
According to FB they aimed to complete the Instagram purchase by the end of May 2012 -- this appears unlikely.
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