Facebook Mobile-Ad Tool Only a Small Step: Munster

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Oct, 2 (Bloomberg) -- Gene Munster, managing director and senior research analyst at Piper Jaffray, examines what Facebook’s new mobile-ad tool will mean to the company’s bottom line, growth in monetization of its mobile product and how much of a competitor Twitter will be for mobile ad dollars. He speaks on Bloomberg Television’s “Bloomberg West.”

He joins us from minneapolis.

I think with this does is it's another step in facebook goal to really take over mobile.

As you were talking about it, one year has made a huge difference in terms of the speed that facebook has gone after mobile.

Credit them for finding unique ways to do that.

If you're going to look at the levers that could move the needle for facebook, the this is probably a three or four on a scale of 1-10 and the big one is probably instagram which is a 10. it's important because it shows a willingness for to work with advertisers around mobile but in a different context, this re- targeting.

It is more about the platform than about necessarily impacting the numbers.

We know that mobile ad dollars account for 41% of ad revenue.

Do you see mobile ad revenue surpassing desktop ad revenue?

Yes, it will in about a year.

It is ultimately the way facebook talks about this is that the usage will rob a police lit somewhere 50/50. maybe 60 -- mobile, 40% dekes top that we are getting closer to that point.

To keep these revenues going, they have to come up with creative new products like we are talking about today.

We have been talking a lot about twitter which is a competitor to facebook.

We are waiting for their s1 to be revealed to the public.

How much of a challenge do you think twitter could be to facebook?

Do you worry about them as a competitor?

They are going after two different things within the social context.

People spend a certain amount of time on social.

If it is direct communication, that's where facebook wins.

If it is short to medication to a broad audience, that's where twitter wins.

The way we think about it is you don't want to be one-size-fits- all in social.

There are different applications that have gone at it at a different angle and twitter has their angle and their niche that has been carved out.

We don't really see this as being competitive.

In general, the social is a finite space.

The key players have kind of carved their areas out within that.

Will you be looking at the twitter s1 as a potential challenger to facebook?

Will you look at the numbers and what will you be looking for?

We will definitely look at the numbers.

One of the big topics over the past year has been mobile.

Twitter has had more success, speculatively speaking, around mobile.

That is what we will be looking at, is there mobile.

Gene munster, we will be back with you later in the show.

This is breaking news out of the

This text has been automatically generated. It may not be 100% accurate.


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