must<\/strong> benchmark yourself against benchmark yourself against the leaders, rather than the other 90% of Facebook developers who are merely scrambling to find two nickels to rub together…<\/p>\nA business must be able to generate positive cashflow and must be able to sustain a comfortable lifestyle for the application creators. Anything less and you’re running a charity.<\/p>\n
Let’s break this down for a moment…<\/p>\n
An “average” application might generate $10,000 to $15,000 a month, which could be fairly reasonable…until you break that $15,000 by 30 days, or $500 a day.<\/p>\n
$15,000 a month or $500 a day, with an assumption of 50,000 daily active users means you are generating 1 cent per daily user…that’s pretty pathetic<\/em>…<\/p>\n–<\/p>\n
Instead, if you want to go big with Facebook Applications, you need to define your goal and reverse engineer the process.<\/p>\n
I think $100,000 per month <\/strong>is a decent benchmark. (as a starting point…)<\/p>\nWith an average of 100,000 daily active users that’s an average revenue per user (ARPU) of $1 per user per month.<\/p>\n
Which is going to be hard to achieve if you’re using “traditional monetization” routes like CPM (pay per 1,000 impressions) or CPC\/CTR (pay per click) methods like most applications are doing.<\/p>\n
Some of Jason’s findings:<\/p>\n
<\/p>\n
Based on the BEST case scenario for a CPM payout of $2 per 1,000 eyeballs, that’s going to take a lot of churning to reach that level.<\/p>\n
Adsense and other CPC measures could perform even worse with a $0.05 pay per click payout (with a clickthrough rate of sub-1%).<\/p>\n
Here’re 4 other “traditional” monetization systems:<\/p>\n
<\/p>\n
You can pretty much expect all these to underperform because using these website monetization media to try to monetize off a dynamic application is like putting a motorcycle engine into a Ferrari…the $*#&@ thing just won’t fly.<\/p>\n
Among the reasons why it doesn’t work…<\/p>\n
\n- Banner Blindness<\/li>\n
- Irrelevant ads being served up<\/li>\n
- Horrible CTRs<\/li>\n
- Zero marketing support<\/li>\n
- Low trust<\/li>\n<\/ul>\n
The key factor is that these systems are prime examples of interruptive marketing.<\/p>\n
Most application developers will shove these ads and banners at the top or bottom of their app as an afterthought…<\/p>\n
So if your clickthrough rate is 0.05%, you’ll know why…<\/p>\n
Instead to construct a commercially viable Facebook Application, the monetization systems need to be integrated<\/strong> into the application design. Do the equivalent of product placement where you see the BMW automobile or Omega watch in a James Bond movie. You can’t really do a Tivo timeshift out of that, can you?<\/p>\nBetter yet, integrate your monetization system into the heart of your game logic and development process…<\/p>\n
If completing an offer is part of the application, you’d be able to see the 75% CTRs that have formed the foundations of $uperRewards payouts…<\/p>\n
<\/p>\n
The above stats for $uperRewards applications $10-50 earnings per 1,000 daily active users. CPM of $50-300. CPC revenue of $0.15 – $0.20 with CTR of 75%.<\/p>\n
For more information, visit: $uperRewards<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"In a couple of hours time I’ll be on the panel at the second Singapore Facebook Developers Garage, which features the topic: “Marketing and Monetization of FB Applications: Hype or Goldmine?” The session moderator Bernard Leong has posted a kickoff post: Marketing and Monetization of Facebook: Prologue If you’ve spoken to me or exchanged emails, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[98,22],"tags":[1222,1219,1814,1102,1223,1174,1225,1218,1163,123,1177],"_links":{"self":[{"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/posts\/546"}],"collection":[{"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/comments?post=546"}],"version-history":[{"count":0,"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/posts\/546\/revisions"}],"wp:attachment":[{"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/media?parent=546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/categories?post=546"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/whoisandrewwee.com\/wp-json\/wp\/v2\/tags?post=546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}