Meeker on Mobile Monetization

If you’re a regular reader you know that I’m a Mary Meeker fan. In her latest presentation Meeker, one of the smartest people on the planet when it comes to mobile trends, said that the mobile opportunity continues to be huge. IPhone’s impressive game-changing adoption rate has been dwarfed by that of IPad and Androids, and despite the tremendous pace, smartphone adoption has a huge remaining upside.

Mobile traffic now accounts for 10% of the Internet. Up from 1% in late 2009. And despite all the negative things you may have heard about mobile monetization, Mobile Commerce accounts for 8% of eCommerce, with spending practically keeping pace with time spent with the medium.

Unfortunately, as you have probably also heard, average revenue per user for mobile is not keeping pace with desktop stats. Meeker uses Pandora, along with Zynga and Tencent as examples and actually Pandora is doing a pretty good job of monetizing mobile ad revenue, compared with some of the others. (Personally I think it’s all about the user experience – those ads on Words With Friends are so annoying!)

Actually, what has happened is that mobile activity has helped boost clicks, which is driving down the cost per click. For now. The good news is that mobile monetization will catch up. In fact Meeker says that in 1 – 3 years it will surpass desktop.

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