Mobile ads, particularly app install and direct response ads, have become a big business for Facebook and are likely to become a big business for Twitter very soon. Much of the focus has been on the app install business and how large that line of business can become. But I think Twitter and Facebook could head in different directions.
I’ve been thinking a lot about what makes Craigslist so durable and why lots of vertical marketplaces have succeeded and failed in trying to unbundle the company’s myriad offerings.
I recently took a look back at a lot of the companies that I found really interesting, regardless of whether I invested or not, and tried to group them. It turns out that there is a large cluster in one theme – city living. While San Francisco is not as dense as New York or Tokyo, it does have sufficient density to unlock some really interesting businesses that maybe wouldn’t work as well in a more sparsely-populated area.