Growing mobile access spells trouble for Facebook

Increased mobile usage could damage Facebook, claims report.

The growing popularity of smartphones and availability of reasonable data plans has led more and more users to Facebook from their handsets and tablets. Though an opportunity for growth, this trend poses a risk for the social network’s profitability.

In December of last year, Facebook revealed that almost half of its active monthly users – 425 million people – had accessed the site via their mobile phones. Though an increased mobile usage offers Facebook an opportunity for growth, it is not without its problems. 

Cnet came across Facebook’s concerns in the document that it filed with the Securities and Exchange Commission yesterday in preparation for its IPO.

A major issue that worries Facebook developers has to do with ad revenues. As present, Facebook does not have an advertising system developed for its mobile platform, which is a major source of revenue on its website.  

Another threat that faces Facebook is its lack of ownership of software and hardware platforms.

Unlike Google, Facebook does not own an operating system and is dependent on builders like Android and Apple for space on mobile devices. 

Though Facebook also views Microsoft and Twitter as competitors vying for mobile space, the real threat comes from Google.

The Android operating system is growing in popularity and if Google decides to introduce its own social network Google + into the OS mix, Facebook with be in trouble.  

After all, if users can access web search, email and social networks with a single account on Google, why would they bother with a separate app for Facebook?

Despite the big worry, all is not lost for the social networking site. Facebook’s trump card is the fact that it is the most popular social networking site in the world with new users being added every day.

The key to its continued success lies in a revamped mobile app that is so much fun and so easy to use that users just can’t keep in down. And if it is able to completely integrate its services across operating systems, there’s no stopping its growth.  

Since ad sales are a primary source of revenue for Facebook, it needs to develop some quality advertising for its mobile app – and fast.

Luckily for the network, Facebook users gladly share information about their interests, likes, dislikes, profession, sexual orientation etc, making it easier to develop targeted advertising. 

With a sound development strategy and an IPO just around the corner, Facebook can turn its mobile worry into its biggest platform of growth yet.