Facebook recently announced that for the first time, its mobile app revenue surpassed its desktop revenue. In Q4 of 2013, 53% of the company’s revenue was generated from its mobile apps. This reflects the overall shift in the market towards mobile devices. Nielsen’s most recent Digital Consumer Report states that 65% of all Americans now own a smartphone, up from 44% in 2011. The study also found that Americans now spend an average of 34 hours a month, an increase of nearly 10 hours from 2012, using mobile apps and browsers on their smartphones. Meanwhile, internet surfing via desktop devices experienced a decline of almost 2 hours to an average of 27 hours a month.
Facebook is moving with this market shift as it attempts to strengthen its mobile presence. In early February, Facebook released another mobile app, Paper – stories from Facebook for iOS. Paper gives users a more elegant interface to interact with their news feed. So far, the app has experienced mostly positive reviews from critics and users with a score of 76 on Applause. On Wednesday, Facebook COO Sheryl Sanberg confirmed that Paper will be ad free for the foreseeable future. However, the company has been heavily reliant on ads for revenue, accounting for $2.3 billion during Q4.
As Facebook, and other developers, continue investing more resources into the mobile app market, it is important not to lose sight of app quality. Before developers can think about monetizing their app, they first must create compelling content that will engage their users. Also, it is important for developers to test their apps to ensure that it will delight everyone. Based on initial feedback, Facebook has met these criteria and is allowing Paper to gain a foothold before bombarding users with advertisements.