“Riches in mobile ads, just no profits”
Author: Spencer e. Ante - Suzanne Vranica also contributed
Smart phones have provided a new plat-form for revenue to be made in the months ahead. They have the potential to produce billion dollar valuations for makers of mobile software and services. However, it’s turning the number of users to actual revenue that has been difficult for companies to capitalize on. The article I read uses companies such as Pandora internet radio and Instagram, Facebook’s recently acquired interest for 1.2 billion. The problem is the cell phones that deliver these services to people do so on smaller screens as opposed to lap-tops or home computers. Therefore marketing and advertising on these devices has become tricky.
Venture capitalist have pumped 5.8 billion into mobile start ups last year, accounting for 42% of all technology venture invesments, according to investment bank Rutberg & co. This is a huge increase of devices and money spent on technology for smart phones, however the revenue from advertising and the rate at which cell phone users are using Pandora and Facebook as mobile apps are growing the rate of growth for advertising and marketing campaigns has not seen the same result and have been ineffective thus far. Pandoras deficit currently is 44 million since 2006. A number of stock holders and investors have growing concerns about the advertising revenue stream but are not deterred from their goals.
I think as an iphone user myself, I feel that most of those adds are irritating or annoying. Unfortunately I think we are going to be seeing something like the pop-up like adds or things you have to wade through to get to the function of the free service, compared to trying to make people pay for the service instead of being subjected to forced adds or via email. However if it works there is money to be made in the new technology needed. Writing techniques
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