VC View: Mobile Internet quickly become a new hotspot

Recently, according to foreign media reports, venture capital company Union Square Ventures famous investor Frede Wilson, Fred Wilson, wrote in his blog that the mobile Internet is rapidly becoming a new hot spot as desktop Internet traffic grows to a standstill. The famous VC is below the analysis of their own views, the following is the full text of the article:

In comscore, Quantcast, Alexa and other third party ranking service reports we can find that the first half of this year, the major sites of traffic rarely change.

You might think that all these big sites have stopped growing.

Similar phenomena have been observed in the companies we invest in. The board meetings of the companies look similar. The Web site is flat, but the mobile internet is just as wild as weeds.

I hinted at this in a post last week, when I wrote about the desire to have an audience monitoring service that integrates the desktop and mobile Internet.

This year, the shift from the desktop internet to the mobile side has been spectacular, compared to the changes we saw last year. This shift is especially noticeable in games, social networks, music and journalism, but it is happening in every corner, bringing not only great opportunities but also huge challenges.

Foursquare and Instagram are the biggest beneficiaries of the transition, from mobile-side services. And the hardest hit is Facebook and Google's feature-rich desktop apps.

The richness of function is not the object of the moving tide. It will bring rewards for small, focused and lightweight services. I have said this before, but I will continue to say that later. Mobile phones are like desktop Internet applications, and the software that is installed on the phone is the corresponding function.

That's why Facebook should (and it seems to) break the existing Web apps that contain all the functionality and turn it into a series of lightweight mobile apps. Messenger, Instagram, and camera are all examples of Facebook's mobile side.

The user experience is not the only challenge for companies hoping to make a difference in the transition. Profit patterns are also facing changes.

Traditional profit-making methods, such as display ads, do not perform well on the mobile side, as on the desktop side. And this way on the desktop side of the effect is not excellent. Overall, the display advertising model brings a lower average per user income (ARPU) to the mobile end.

On the other hand, with a good buying experience, the mobile side will have a good revenue position. Free Value Added (freemium) mode (whether it's a virtual product in the game or an application upgrade) has a good performance on the mobile side.

If you want to adopt a media model, you should look for inspiration from the Twitter business model. The ads on Twitter are based on their most basic content objects (tweets) and are put directly into the most important user experience (timeline). In this way, it is not surprising that Twitter's super half of its revenue comes from the mobile side.

All is good news for entrepreneurs who take advantage of the benefits of this transformation. For those of the big Internet companies that are still operating 5 years ago, the situation may not be very good. You have to turn right at an ultra fast speed, and you have to control it so you can't overturn it.

Over the past 15 years, we have seen Microsoft and Google from being invincible to becoming insignificant members of many emerging markets, and I suspect that we will see Facebook go into the same cycle. Rim is rapidly dying, and Yahoo has become a question mark.

In the technology industry, the more things change, the more stagnant they become. Your footsteps will never stop. Because the big changes that will break your perfect plan will come soon. Today, this change is mobile internet. And tomorrow's Revolution nobody knows. I am trying to figure out what will be the next change and profit from it. Because that's how the game is played. (Na Yan)