This article on the rise of mobile internet use and the impact on Web 2.0 institutions is important reading for A2 media students:
When they look back at this era, Internet historians will mark Facebook’s Instagram acquisition as the symbolic moment when the Great Shift was confirmed. Significantly, it also came soon after Steve Jobs’ death. The device that Jobs created had, within the space of five years, allowed a 551-day-old company with 14 employees to become worth $1 billion.
On April 9, 2012, Web 2.0 lost its mantle as the most important Internet paradigm. We are now starting the Age of Mobile. Google and Facebook’s Internet dominance is no longer guaranteed. They face a threat from below and an army of smartphone-touting masses that sees little distinction between the piece of hardware in their hands and the Internet world it opens up.
The momentum has been shifting for a while, but now the trend is emphatic. People now spend more time in mobile apps than they do online. There are more than 500 million Android and iOS devices on the market, and giant countries like China and Indonesia are only just getting started in their smartphone and tablet push. Global mobile 3G subscribers are growing at over 35 percent, year on year, and there’s a lot more room to move – there are 5.6 billion mobile subscribers on our fair planet. Even in developing countries, cheap smartphones will soon rush into the market. And who here doesn’t think tablet sales are going to go gangbusters pretty much everywhere?
This is a new phenomenon. Steve Jobs brought the first iPhone into the world in 2007. Android soon followed. The iPad is only two years old. Google, on the other hand, has been around for 14 years. Facebook: eight. They’re veritable geriatrics. And that’s why they’re behind on mobile.
They know this much themselves, and they’re worried. Just look at Facebook’s S-1 filing. After noting that it has more than 425 million users who accessed the social network via mobile in December 2011, Facebook noted [my emphasis]:
We do not currently directly generate any meaningful revenue from the use of Facebook mobile products, and our ability to do so successfully is unproven. Accordingly, if users continue to increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, our revenue and financial results may be negatively affected.
In his latest earnings call, meanwhile, Larry Page was bullish on mobile, even as Google revealed that the average price of its bread-and-butter cost-per-click ads dropped by 12 percent year on year.
It’s clear: The centre of gravity is shifting. Google and Facebook especially will have to do more to adapt to the new reality.
via Web 2.0 Is Over, All Hail the Age of Mobile | PandoDaily.