It seems like mobile apps have higher retail conversion, at least according to a study conducted by Criteo. Source: State of Mobile Commerce Report Q4 2015 These higher conversions play specifically to the strengths of Amazon and Facebook. Amazon currently has 244 million active users on its retail site, and has the strongest mobile franchise among e-commerce names. The added conversion rate from its mobile app creates another dimension for Amazon to boost its average sales per user. At least, according to CIRP estimates the average Amazon Prime user spends $1,500 per year on the e-commerce site, compared to $625 for nonmembers. Therefore, the incremental impact from mobile convergence could mean an additional 20% in revenue per mobile user that converts over to the mobile app, i.e. $1,800/year in spending for Prime Members and $750/year from non-prime members. Facebook launched Carousel ads towards the end of 2015, and added Canvas ads in the past couple weeks to help mobile conversion metrics. I anticipate that Facebook’s higher conversion metrics from mobile will translate into even higher ARPU in the United States and rest of world. The company has sustained its revenue growth due to higher pricing, which is driven by conversion metrics, and a real time bidding network native to Facebook’s portfolio of apps. I believe, the opportunities to monetize via mobile are much more meaningful than originally anticipated, as many were concerned about the small screen format, and how it would affect ad conversions. It seems like ads gain better impressions due to the limited screen format, and non-intrusive nature in which Facebook displays ad units. Facebook reports that the average user spends 31 seconds on its Canvas Ads, which provides tremendous value when compared to TV spots. It seems we can put to rest the notion that mobile isn’t a profitable medium for advertisers and publishers alike. Furthermore, well positioned e-commerce plays like Amazon are direct beneficiaries as well.