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Facebook Inc.'s Newest App Could Help Generate $1 Billion a Year


Facebook Messenger App Could Help Generate 1 Billion a Year FB

Source: http://fool.com/investing/general/20...

Facebook has rapidly grown Messenger to 500 million users since forcing users to download the app to use the feature on mobile. Still, there's no clear path for Facebook to take advantage of that huge user base and actually make some money from them. Stickered for Messenger may open the door for Facebook to make some money selling stickers.

Source: Facebook

Facebook currently has a sticker store, but all of its stickers are free. While some come from Studios like Pixar and Lions Gate, which might be pitching in advertising money, there's no direct revenue from sticker sales.

Competing messaging service Line has a sticker store that's averaged $10 million in revenue from sponsored and user-generated stickers every month at the end of last year. With a user base less than half the size of Messenger, Line has generated a revenue stream that accounts for about 1% of Facebook's expected revenue in 2014.

It's very likely that if Facebook chose to pursue a sticker store with paid stickers and user submitted creations, it could have a $1 billion business on its hands within a few years (assuming continued adoption of Facebook Messenger). Analysts expect the Facebook to generate over $17 billion in revenue next year and approximately 30% more revenue growth the next year. $1 billion in additional revenue creates about 4.5% upside for Facebook in 2016.

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It's hard to think of branded stickers as a billion dollar business unless you see them as mobile ads.

There may be other ways to monetize Messenger such as person to person payments. 

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