Facebook Building Its Own Phone???

Facebook denies the rumor, but is said to be planning on building and distributing its own mobile device.

You might wonder, if the rumor is true, why it might do so. Some speculate that Facebook might believe it cannot have as much impact on the mobile world as it has on the web without one.

Having its own device helps Facebook become a mobile platform, not just an app running on a platform.

Here's Why Facebook Is Secretly Building A Phone: It Needs To Be A Platform, Not Just A Service:

Will Verizon Launch Apple iPhone on its LTE Network?

It is questionable whether a faster mobile network automatically leads to consumer demand. "Hot" devices or lead applications tend to be required as well. All of which might suggest the best way for Verizon Wireless to stoke demand for its coming Long Term Evolution network is to launch the Apple iPhone directly on 4G, rather than its 3G network.

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Short Mobile App Shelf Life Isn't Necessarily a Bad Thing

Today the average smartphone has 22 apps on it, but the half-life of an app is about a month. In six months only five percent of them have been retained, according to Borrell Assoiciates.

That isn't necessarily a bad thing. The most-popular type of mobile app downloaded to smartphones is "games." People play them for a while, then move on.

Other types of content, such as movie or other content apps, will have a similar short shelf life. People watch TV shows or movies and then do not necessarily return to using them in the future. That's not a problem; it's an opportunity.

But the general observation still holds: few developers are likely to make much incremental revenue from their mobile apps. But that might not be the primary purpose for producing an app.

Promotion always has been a leading reason for advertising, and apps with short lifespan that promote purchases of movie tickets, content, games and other products still are worth doing, from that perspective.

Preference for In-App Advertising Strong Across Platforms

In-App Advertising Works

In-app advertising appears to work, according to Nielsen.

In-App Advertising Preferred by End Users

Mobile advertising is increasingly finding its way into mobile apps, with teenagers being much more receptive than their elders, says Nielsen.

Fifty-eight percent of teens say they “always” or “sometimes” look at mobile ads. In general, men of all ages are more receptive to mobile ads than women. Only 37 percent of men say they are not at all likely to respond to an ad on a mobile device, compared to 44 percent of women.

Across all operating systems, apps users would prefer to view mobile ads within an app. Android users are more likely to click on an advertisement within an application, while iPhone users are the least interested in having ads take them outside of their application.

Mobile Advertising Will Be Indistinguishable from Online Advertising by 2015

About one online marketing dollar in every five spent in 2010 will go to a mobile campaign, says Borrell Associates. By 2015, the mobile share will have grown to almost two of every three dollars spent. Part of the reason for this heady forecast is the expected growth in the number of smartphones, Borrell Associates says.

The rest of the spectacular gains are simply the growing "mobilization" of consumer devices. Within five years, the majority of phones, computers, game machines, e-readers, and GPS navigation devices will be true mobile devices, each capable of receiving mobile-targeted advertising.

In effect, there will no longer be any real distinction between mobile and online, says Borrell Associates.
The other big change is that mobile campaigns will assume greater prominence for local marketers as well.
Today less than seven cents of every mobile marketing dollar is spent locally, by locally owned businesses. About 93 percent of mobile advertising is "national" in focus.

This will change as the devices themselves improve and the tools available to local marketers become less expensive and easier to use. By 2015, a quarter of every mobile marketing dollar will be spent locally, Borrell Associates forecasts.