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The key to Whatsapp’s success? Focus on product

 

When I talk about our approach to investing I often say that the next generation of successful companies will be most notable for their amazing products. That contrasts with previous eras where great sales and marketing capabilities and great engineering were often more important than product (think about the great enterprise software [...]

Mobile now accounts for 53% of Facebook’s ad revenues

Two years ago Facebook had $0 from mobile and everyone was wondering if they would survive the transition away from the desktop. As you can see from the chart above 53% of their ad revenues now come from mobile. That’s an amazing story of business transformation, and their share price is now around [...]

Facebook remains the dominant social network

It may be that teenagers are deserting Facebook and that their future prospects aren’t as rosy as they were maybe a year ago, but the chart above makes it clear that Facebook is in a much stronger competitor than any of it’s competitors. LinkedIn, Pinterest, Twitter and Instagram are all great businesses that either [...]

Facebook is winning the identity war

I know a lot of people won’t be happy to hear this, but new data out from Facebook suggest they are becoming the dominant provider of online identity. The numbers are a little hard to interpret but my read is that 850m first time registrations to services are made using Facebook Connect each month, [...]

LinkedIn and Facebook – two very different approaches to going public

I just read How LinkedIn became a Wall Street juggernaut on Techcrunch. The article lists four things, three of which relate to being a great company (multiple growth vectors, a product that gets better as it gets bigger, deep competitive advantage). The fourth describes how their approach to the market, which was to under [...]

Facebook turns in a great set of results

Facebook reported strong Q2 results yesterday, bucking the trend in what has generally been a disappointing earnings season for large companies. For many people, Facebook is the company they love to hate, I suspect because of privacy concerns. That dislike often manifests itself in criticism of the company’s business model and long term prospects. [...]

Interesting stats show Facebook mobile ads are working, especially on Android

There was a good round up of Facebook mobile advertising stats on Techcrunch yesterday, culled from a number of different sources. These are the highlights:

20% of ad spend on Facebook now goes to mobile, from a standing start last March and up from 14% since October 71% of ad spend targeted to phones [...]

Great to see Facebook succeeding on mobile

As you may have seen Facebook announced their Q3 results yesterday, revealing 14% of their ad revenues came from mobile. This was ahead of analysts expectations and helped drive their shares 13% higher in after hours trading.

Since the advent of the web it has been harder to make money out of publishing. A [...]

Why clicks are the wrong metric for many brands

Last week I wrote about Facebook’s partnership with Datalogix to measure ad effectiveness by tracking whether people bought a product in store after seeing a Facebook ad. Since then more detail has been forthcoming about why this is a good idea, doubtless aimed at overcoming the privacy objections. This is the most telling:

Smallwood [...]

Measuring ad effectiveness by linking to offline sales

On Friday I wrote about how privacy advocates will welcome Facebook’s release of their Shared Activity plugin which makes it easier for users to control how their actions on Facebook-connected third party site show up in their Facebook feed. Today’s news points in the other direction. This morning I read of Facebook’s project with [...]