jozecuervo.com

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