Today I am kicking it at VideoEgg, drinking lots of coffee and sitting in on a few sessions – part of the VideoEgg App Camp. As an unofficial representative of Bebo, my goal today is to learn as much as I can about the Application Platform business that has boomed on Facebook over the last few months. Here are my notes:
Session 1: Monetizing Apps through Advertising.
Monetizing Apps through traditional methods:
- Referrals / CPI
- CPM / CPC
- Leadgen?
Which app types are going to be the most successful, categorically?
- casual gaming?
- Media apps
- Utility apps – no
Do different demographics like different apps?
Is Group-based app activity vital?
- Groups are successful on myspace.
- Groups platform not robust enough on Facebook
- Integrating groups into the app experience can improve
Jerry Ablan, pogostick
- Harry Potter App – Which character are you? 40,000 new users per day.
- High Turnover = good for business?
- Doesn’t care about advertiser needs, why should he?
App developers may trade referrals from one platform for boosted distribution on other platforms…
Session 2: Valuing, buying and selling Apps.
Adonomics, valuation system/market for apps.
- Dramatic Whitespace, $700
- Favorite peeps vs. Top friends 10’s o millions of dollars.
- App developers will pay on average $0.50 per install
Developers often avoid using ads initially, but why?
- Troy thinks that most users will not react negatively to ads.
- Developers are leaving money on the table.
What is the critical mass for a Social Network App to become highly valuable?
- Number of registered users
- Number of active users
- Number of page views or interactions
- Growth rate
