Linkedin shares drop after weak forecast

Following the release of a weaker-than-expected forecast for the current quarter, shares in Linkedin dropped by more than 10% in after-hours trading in New York.

Analysts had expected revenues of around $359m (£230m) for the April to June quarter, however, Linkedin announced it expects revenues of between $342m to $347m (£220m to £223m), raising concerns that the pace of growth may be slowing.

The lower than expected forecast came despite the firm reporting that profit in the first quarter more than quadrupled from a year ago. Linkedin made a net profit of $22.6m in the three months to the end of March, up from $5m during the same period last year.

Linkedin said that its revenue in the current quarter will be impacted as it looks to adopt new approaches to advertising, particularly in the mobile segment.

Steve Sordello, head of finance at Linkedin said “We are seeing some encouraging early signs, but it’s of a very small scale right now.”

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Facebook continues to be bolstered by mobile revenue

With Facebook audiences reaching an average of 1.1bn per month, figures released recently show that in the last quarter, Facebook’s revenue rose 38% year-on-year to reach $1.46bn (£938bn). This rise is based largely on its ability to monetise its mobile audience.

In the three months up to 31st March 2013, advertising revenue reached $1.25bn (£803m), showing an increase of 30% on the same period last year. Mobile advertising accounted for approximately 30% of this revenue; however, the profit margin fell 10% during the same period to 26%.

On-going investment in technology is a factor in the fall in profits, plus the acquisition of the Atlas Advertising Suite from Microsoft.

It has been reported that average monthly mobile audience figures reached 751 million, with the picture-sharing service Instagram topping 100 million monthly users.

Facebook CEO Mark Zuckerberg says “Overall, there are three main parts of our strategy. Build the best mobile product, build a platform with new services that leverage the social graph, and build a strong monetisation engine.”

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Mobile spending predicted to double in twelve months

Following recent research, it has been suggested that spending via mobile devices is set to double over the next twelve months.

Mobile spending has risen 55% compared to last year, however, with the promise of universal 4G coverage – offering speeds around five times faster than most current connections – reaching 98% of the UK within the next year, frustrations of slow connectivity will be a thing of the past and it is predicted that the amount of money spent via mobile devices (m-commerce) will rise a further 115% in the next twelve months.

It is believed that the introduction of 4G coverage will add £1.8billion to the economy in the UK, made up of £800million from existing mobile shoppers and a further £1billion from new consumers.

Neil Saunders, director of Conlumino, who carried out the research, said “Retailers today must take every chance to engage consumers, giving them every possible opportunity to buy and interact with their brands. An ‘Omnichannel’ approach is key to making this happen and retailers can’t afford to stand still.”

The Senior Director of m-commerce at eBay, who commissioned the survey, said “Consumers today want convenience and speed. The arrival of universal 4G will bring with it a more immersive, instant and intimate shopping experience than ever before. Retailers must act now to turn this opportunity into an exciting reality.”

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No advertising allowed on the Google Glass

Developers working on apps for the smart glasses being developed by Google have been informed that they will not be allowed to put advertising within the display on the device.

The recently published terms and conditions for the developers working on ‘Glass’ have also stated that companies are not allowed to charge for apps.

The devices, which have voice-activated controls and also include a five megapixel camera, have started to be distributed, with the first glasses being sent to developers and “Glass Explorers”.

The glasses allow the user to hear audio without the use of in-ear headphones – instead, sound waves are delivered through the user’s cheekbones into the inner ear via a bone conduction transducer.

Japanese firm Telepathy Inc. are keeping a close eye on the excitement these developments are generating as they work on their own device, the Telepathy One, which is considered by some as a possible competitor.

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20% of Facebook ad spend goes on mobile users

Recent research has revealed that despite its premium cost, one in every five pounds (20.3%) spent on Facebook advertising now targets mobile users.

The claims were made after research was carried out by one of Facebook’s strategic preferred marketing developers, media agency Kenshoo Social and followed analysis of more than 2m Facebook ad clicks and conversions by global advertisers.

Kenshoo CMO Aaron Goldman says “The world’s top brands have embraced Facebook mobile advertising and we expect the channel to become increasingly competitive as new devices, like those on display at the Consumer Electronics Show this week, deliver enhanced interactive experiences.”

Further analysis of the ad formats revealed that Android dominates Facebook spends on smartphones, controlling 71 % of all spend, compared to just 29% for iOS. However, in terms of Facebook spend on tablets, 97% targets iPad users, with only 3% targeting the Android user.

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