The Wrong Way to Profit Off Mobile

The following video is part of our "Motley Fool Conversations" series, in which Motley Fool senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss emerging trends in technology.

In today's edition, Jeremy and Eric look at the struggles Pandora is having monetizing its exploding growth on mobile. Only about 1% of ad spend is on mobile despite 70% of its usage being on mobile devices. That's a huge gap, and it underlines the extreme difficulty of having an advertising model in mobile or Internet multimedia in general. Eric and Jeremy suggest that if investors want to try investing in the growth of media on the Web, they look to companies with a higher level of recurring revenue from a large subscriber base.

Thanks to increasing streaming of multimedia, Internet traffic is growing at a level where it's expected to quadruple by 2015! The Motley Fool has compiled a new report called "The Motley Fool's Top Stock for 2011," which highlights a company that's set to profit handsomely from the booming amounts of data flowing across the Internet, no matter which company delivers the video. Thousands have requested access to this special free report, and now you can access it today at no cost. You can get instant access to the name of this company by clicking here -- it's free.

At the time thisarticle was published Eric BleekerandJeremy Phillipsown no shares of the companies listed above.Motley Fool newsletter serviceshave recommended buying shares of Walt Disney and Netflix. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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