Facebook Application Monetization - Case Studies

Facebook App Monetization: Case Studies Niraj Ranjan Rout (niraj@mobicules.com) Mobicules Systems (www.mobicules.com)‏

Facebook app monetization: The lowdown
Too many apps. More coming
Possibility to grow very fast.
The lowdown on monetization:
Very low CPMs: $0.5-$2 per 1000 impressions
Earning per click: $0.05-$0.10
CTRs of less than 1%
Leading to typical earnings of $10 per 1000 daily active users. Absymally low.

Low Earnings: Why
Apps designed to grow fast. And not do much more.
“ Traditional” CPM/CPC advertisements are not “interleaved” with social apps, which are very dynamic and interactive in nature.
There is a need to go beyond traditional CPM/CPC
Lets discuss a few which have done that.

Mob Wars
A thriving crime economy, where the user earns virtual money by performing tasks.
A very competitive virtual economy.
2,686,376 monthly active users

Mob Wars
Innovative use of all monetization possibilities.
Biggest money-churner: CPA as Buy Favor from Godfather.
Estimated earnings of over USD 100 per 1000 DAU.

iLike
Agenda: Connecting musicians directly with fans. With a difference-Lots of musicians, Lots of fans. Only possible on a Social Network.
5,133,469 monthly active users.

iLike
Huge growth, riding on Facebook.
$10 million already spent by users to buy ring-tones, tickets, music.
Collects a fee for every paying customer sent to iTunes or TicketMaster. From record labels for streaming.
Coming: Ad network for concerts

MineKey
440,000 monthly active users.
People express opinions, agree/disagree, discuss opinions.
Already has a huge number of opinions on any topic.

MineKey
Exceptional user generated content
Potential monetization from – Reputation Management, Companies interacting directly with users, highly targeted advertisements.
Endless possibilites around high quality people interactions.

To conclude
Engagement is the key.
Mobwars creates engagement by being an addictive game, iLike by connecting with artists, Minekey with great UGC.
Monetization should be driven by flavor of engagement.

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Facebook Application Monetization - Case Studies

by Mobicules Technologies on Oct 11, 2008

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