The Mobile Paradox | TechCrunch
Google’s stock declined by over 4% yesterday. Many have put this down to the company’s decision to create a non-voting class of stock as part of a control-retention exercise as the founders sell shares.
In the same week Facebook acquired Instagram for $1 billion as part of its efforts to be more relevant on the growing mobile platform, Google, for the second consecutive quarter, suffered a decline in “Cost Per Click” rates that is in large part attributable to the shift in traffic from the desktop/laptop to the mobile platform.
I believe what we are seeing here is the start of a secular trend that represents nothing less than the end of the web 2.0 era where we all consumed services through a browser on a computer. Replacing that era is a new, app-based, message-centric mobile Internet. In this new era the essential unit of advertising (a page based ad, whether text, display or anything else) is simply the wrong monetization vehicle. Something new has to emerge.