In Q1 2013 Facebook helped 3800 developers drive 25M mobile downloads.
Adam Rifkin stashed this in Facebook!
Josh Constine notes that Facebook is winning in mobile -- now 30% of their ad revenue:
40% of the top 100 iOS and Android app developers bought these ads in the last week of Q1 alone. Mark Zuckerberg meanwhile said, “We’re starting to see real revenue from selling mobile app installs.”
Zuckerberg noted that with the rise of iOS and Android which it doesn’t own, it wasn’t clear how Facebook would add value to developers. But now Facebook has settled into helping developers build and growth their apps.
In terms of building apps Facebook already offers free SDKs that make it easier for developers to build in Facebook login and sharing options. Then just last week, Facebook acquired mobile app backend platform Parse, which handles servers, data storage, and more for developers so they can focus on creating enjoyable mobile app user experiences. While a relatively small business now, Parse subscription fees could contribute a few million dollars per quarter to Facebook in the future.
Where Facebook really stands to earn money is app discovery. Sandberg said “We’re uniquely positioned to offer developers massive reach”, alluding to its 751 million monthly users. Regarding app install ads, Zuckerberg explained that “Even if every recommendation isn’t one you take….we think [app discovery] is good for the community.”
Facebook’s CEO went on to note that the ads work well because they’re mobile by design. “Most ads make you visit website”, said Zuckerberg, while app install ads just open the app stores which users are already used to visiting. And since people already have their payment info loaded into these stores, the commerce experience is quick and easy.
Zuckerberg sees the app ecosystem continuing to get larger and more competitive, which will make Facebook’s app install ads increasingly more crucial. They helped Facebook boost its mobile ad revenue to $375 million, or 30% of its total ad revenue, up from 23% last quarter. Zuckerberg concluded that “this market is already big and I expect it to grow quickly.”
Mobile developers paid a lot of money for downloads. Is that sustainable?
Will companies like Path and Pinterest have to pay a toll to Facebook to increase their download count?
Is doing so a good use of venture capital -- converting $10 million to 5 million downloads?
I am speculating about those numbers, but I truly am wondering.
751 million people a month use Facebook mobile.
Facebook mobile ads made $375 million in Q1.
The 25 million mobile downloads represent how much of that $375 million?
I can't find the answer.
25M is the new 1M for mobile apps....
750 million monthly users x 3 months = how many ads needed to be shown to procure 25 million downloads?