Facebook
has started to generate revenue from mobile apps. Yesterday, Facebook announced
that its mobile revenue grew faster than expected in Q2 2012.
Facebook
reported the following:
- The company now generates 14 percent of its revenue from mobile ads.
- Mobile usage rose 61 percent from year to year with a monthly average of 604 million users. The company also reported an average revenue per user rate of $1.29, up one percent from last quarter earnings, but still down 9 cents from Q4 2011.
- Revenue from payments increased 13 percent to $176 million.
- In total, advertising revenue increased 36 percent to $1.09 billion, up from 28 percent in Q2.
News for Developers
Facebook
also announced an SDK update for Android last week, designed to
make it easier for developers to distribute and promote apps. The company noted
the release is the largest overhaul to date for SDK Android. Developers may
download the release in the Android Dev Center.
Earlier in
the month, Facebook announced that it has almost completed its redesigned
Google Android app. It is supposedly in the testing phase, but the company has
not released specifics or a date.
Concluding
Thoughts
Facebook
has made steps to improve mobile apps for its users and developers, and Google
left an opening. While Google remains the number one provider of smartphone
software, it missed targets because if its increased reliance on lower-priced
ads.
While all
of these details bring some good news to Facebook, the company will have to
maintain a balance with its mobile ad stream without damaging a user's
experience with too many ads, and it will need to drive the price of its mobile
ads up. At the same time, the company needs to retain its focus on improving
the Android experience.
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