How American Retailers Treat Mobile: Facebook’s Success Story

Posted by Denys Shchotkin on

If you want to know how serious this or that company considers mobile market, you can review their annual or quarterly reports. While major Chinese retailers eager to share with their investors the success in the mobile segment sales and services, their American colleagues often hesitate to disclose such figures. This is especially true of the largest US retailers.

The results are striking

Only one out of two US Internet giants, Facebook, declared in details the performance of the mobile version of their website. Surprisingly, but Alphabet (Google) did not do so.

None of the top 10 US companies in the retail trade, from Wal-Mart to Amazon.com, did not provide statistical data on their mobile clients in the latest annual and quarterly reports.

Any American company, that does not believe that US investors take seriously success in mobile market segment, should take a precise look at the recent financial success story of Facebook.

One of the main reasons why the price of Facebook shares fell sharply in 2012, was a their investors disappointed with Facebook’s achievements in the field of attracting mobile users. And among the main reasons for the high cost of the company's shares today is that investors are impressed now with their achievements in the mobile segment.

As it was reported in Fortune magazine in 2015:

"Facebook has used its weakness in Mobile as a motivating factor. When the company became famous, it did not have a significant profit from the mobile segment. Within 18 months Facebook has developed a great mobile app and reassured critics. By the end of 2013 more than half the company profit came from advertising in mobile applications. In Facebook they said: "Do you want to profit from mobile users? We'll show it to you! ". Wall Street reacted back to this immediately with the growth of the company shares value. "

Today, Facebook wants their results in attracting mobile users to be greatly appreciated. In their report for the second quarter of 2016, the company could not declare their success louder:

Key performance indicators for the II quarter of 2016

- Daily active users in average for June 2016 - 1.13 billion increase of 17% compared to the same period of the previous year.

- Mobile daily active users on average for June 2016 - 1.03 billion increase of 22% compared to the same period of the previous year.

Other financial results for the II quarter of 2016

- Revenues from mobile advertising in the II quarter of 2016 accounted for approximately 84% of all advertising revenue. In the second quarter of 2015 the same figure was about 76%.

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The phenomenal growth of Facebook stock price (see FB) - That's all you need to know about the attitude of investors to the development of the mobile business segment.

If you haven’t started developing your business in mobile direction - it’s high time to have done so.

For online entrepreneurs opted to go with Shopify as their e-commerce platform, there is an easy and affordable way to go mobile - EasyMobile app.

The app converts your Shopify website to a native iOS app in seconds and allows rich and in-depth analysis of your mobile sales channel compared to the other channels you currently use.

Go mobile and use the most out of mobile segment to your business benefit!


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