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Face those conference calls underway following its first quarter earnings at a short time ago it was a mixed picture for the company.
But regardless of what the earnings say it we discovered the real sign that companies days of coolness -- her very much numbered for more -- -- Evidently and the leader president Jeffrey's editor at investor -- dot com.
Welcome both you back to the show rob let me start with you what did you think of the earnings report.
Well what I can see so far as you pointed out it's kind of -- the bigger problem of course other reports they've lost a substantial number of users.
And while that come back and said the user mix is changing the mobile and that's a good thing because mobile advertising has yet to take up -- -- to be successful for anybody get have been Google.
I'm not convinced that's a good thing at all at least not -- they figure out how to get the ads to work.
And Jeff what about that because.
The business is turning to mobility almost no matter what and some people say that's just not a great business for them no matter how you slice it.
Yeah I mean the most telling thing to me -- -- -- earnings release I didn't listen at a conference bodies of -- going on right now with.
The release said that the breakdown of -- monthly active users -- one point one billion total in 750 of those are mobile -- -- 70% but then if you look at the revenue.
Only 30% of their advertising revenue comes from mobile also get 70% of the users.
But only generates 30% of the revenue I mean the math doesn't work on that the pushing more people -- mobile.
The pushing -- to a lower margin product it's not going to be able to monetize as well.
And it's a serious problem in all digital media companies have to deal -- this mobile ship the right smaller screen there's not much inventory for ads.
So even if they're growing their mobile users that there certainly are making any more money doing -- No it's certainly not a problem that's unique to them but rob.
Is it possible that the numbers aren't so great in terms of profitability on that business because -- just knew it may have figured out how to do -- right is their chance of they have a strategy up their sleeve.
That would make it more profitable.
Well you know there's always a chance there's there's there's there's there's a chance that aliens land on the planet tomorrow on and you know what I am saying -- -- element.
Do you get an out for an up but the but the problem problem is as was pointed out is the fact that the screens very small and it's very hard to deliver advertising that that is disruptive and knowing that the -- -- a TV we've got lots of real Stater PCs -- got lots -- realistic and put stuff on the sides not in the batter's.
Out of mobile -- your very limited which you can do and the and the end result -- we take up that real estate and try to put ads on it it tends to annoy or just for the usage patterns -- choices.
To remove dead it cheaper users user not generate enough cash or -- lose them all together.
Neither move sounds all that great they need to figure out a way to get get users back -- -- We're no it's true it's consuming more -- yet in -- in the meantime I mean it this is what I was teasing before that I saw but sure sign of their demise.
I was watching glee and sure enough there was an ad for FaceBook we're gonna run it for you on the side here.
It was not funny although was trying very hard to be and they sort of you can see it right there they showed Mark Zuckerberg is as kind of a -- -- the meeting.
And somebody in his meeting you -- was using their FaceBook app on their mobile phone unit was using FaceBook called my gets a wise.
To try and entertain themselves during -- meeting instead of listening to mark.
What do you think about this has this affected and what does it say that they're they're trying to advertise to cool kids -- commercials on network TV I mean.
Everybody was cool is watching -- they're gonna not like me I was folding laundry and didn't didn't come right remote controlled the Tebow threw the ad.
But most people don't watch -- so what are they doing.
Well I mean there's there's some anyways to -- -- -- you know yeah.
FaceBook -- marketing that you should experience the world through your mobile phones that are paying attention here employer I've got an early now that the good business strategy got preferred actually live my life rather than just be tied to a mobile phone that's what they think.
FaceBook home is gonna do is make you immerse yourself further in your gadgets -- -- that the bigger social problem but.
I mean I agree -- that ad really wasn't hit that was trying too hard I mean FaceBook.
I don't think they understand that I mean this is an operational thing they're trying to do with -- -- the most telling thing to me.
About -- home is that if you look at Google play which is they did you know iPad and android version of the Apple's App Store.
Reviews the average is two stars two so I mean it's just not really catching on the people they might be a small really loyal.
FaceBook crazy user base who wants to have everything in their phone -- you know like -- said it's partially because the ads are annoying but -- other -- a lot of people have privacy concerns for FaceBook and -- -- likely -- that if your privacy concerns you're -- hand over the operating system of your mobile phone -- that -- -- -- -- why -- is not a FaceBook looking to -- you know you're doing as well gentlemen we're out of time thanks for coming -- we appreciate it.
-- pleasure so.
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