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Monday, February 8, 2016

Surprising Value Of A Mobile User

The Surprising Value of a Mobile User

Cory Bergman | January 31, 2016

Eight years ago, Jeff Zucker warned that the media industry was “trading analog dollars for digital pennies.”  A year later, he upgraded those pennies to “digital dimes.”
Then in 2012, Ad Age’s Jason Del Rey wrote that “digital dimes are turning into mobile pennies” as the shift to mobile began in earnest.  It became a widely-held belief in media and advertising circles that mobile yields less revenue, is less engaging and is less immersive than larger desktop displays.
Until it wasn’t.
Led by Facebook, those mobile pennies have graduated into dimes with no signs of slowing down. What’s even more surprising is we’re seeing early signs that the value of a mobile user is greater than a desktop user.

After Facebook’s latest blockbuster earnings report, a16z’s Benedict Evans crunched the data and discovered the company’s shift from desktop to mobile has led to much higher engagement (first chart) and average revenue per user (second). Source: 

<more at; related links: (Will Mobile's Massive Growth Ever Equal Real Revenue? Media Companies Once Lamented That Ads Worth Dollars Offline Were Only Worth Dimes on the Web. It's Even Worse on Mobile. October 1, 2012) and (Mobile-Minded: The Small Screen Isn’t So Small. June 24, 2015)>

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