Facebook Under Pressure To Show Results

"facebook mobile devices"Facebook may have become the first social network to boast one billion users globally but the company is struggling to convince investors of its value when it comes to creating real revenue.

An earnings report from Facebook is due to be released later today, the second since it became a public company, and Facebook is facing real pressures to come up with more revenue.

Two of the biggest issues facing Facebook are the problems of transferring profitability of Facebook onto mobile networks while the other problem worrying investors is the huge fall in profitability of the games maker Zynga.

Zynga is the company that developed the hugely popular Farmville games but the company has seen revenue tumble on the past quarter and analysts are worried about the affect this may have had on the overall revenue of Facebook.

Investors in the Facebook social network are looking for reassurances from Facebook as the value of shares in the company have halved in value since the company first went public in May.

With one in seven people on the planet using Facebook the task facing the company is how to turn this into a real source of revenue.  Pinterest is seeing its users spend cash all over the internet but Facebook users are less likely to spend any money.

Many industry experts have pointed to the slow development of Facebook software for mobile devices as being the main cause oif the downfall of the company in recent months.

Facebook was never originally designed to be used on a mobile device and the company were slow to come up with solutions for users to be able access their Facebook while on the move.

Now users can access Facebook on their mobile phone but the essential money making adverts are few and far between and it is here that Facebook needs to make some changes in these areas.

When advertising accounts for 85% of your revenue and you are effectively alienating the 102 million users who only access Facebook through their mobile device, than changes need to come quickly.

Meanwhile, the Zynga issue looks to have a big effect on Facebook earnings. In the last quarter Facebook revealed the fact that Zynga revenue was responsible for 145 of the total Facebook revenue so any fall in this area is bound to have a large knock on effect on Facebook.

The final figures from Zynga are not due to be released until Wednesday but a pre-release statement warning of poor earnings has been enough to leave Facebook investors expecting the worst for the second Facebook report.

avatar DSM Publishing is owned and operated by husband and wife team . They are also the founder and editor of the Affordable Internet Marketing Course and several other publications. Learn more about them here and connect with them on Twitter and Facebook also on Google+
   

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