Saturday, February 01, 2014 2:44:23 PM
From Facebook's S-1: "We define a daily active user as a registered Facebook user who logged in and visited Facebook through our website or a mobile device, or took an action to share content or activity with his or her Facebook friends or connections via a third-party website that is integrated with Facebook, on a given day."
You're correct in that Facebook counts a user in a third-party app or website... but what you're incorrect about is that they just need to turn the app on ... they need to actually SHARE or perform a Facebook related activity to be counted. Why is this significant? Because a share or a Facebook activity creates content on Facebook which can be monetized to that user's friends. If the average user has 130 friends, then that's potentially the ability to monetize 130 people!!
Further... having Facebook Login or Share in third-party apps is not just for DAU/MAU padding like you think. It's actually a trojan horse play. Facebook's SDK has to be installed in those third-party apps in order to have Facebook Login integrated... but guess what Facebook just announced? The ability for any of those third-party apps to run Facebook ads directly in those apps and share the ad revenue with those third parties. https://developers.facebook.com/blog/post/2014/01/22/testing-a-new-way-for-developers-to-monetize-mobile-apps/ -- Guess who also does this? Google Admob (their mobile advertising arm). It's estimated that Admob is a $10B/year business.
Here's the kicker: More than 81% of top 100 grossing iOS apps and 70% of top 100 grossing Android apps integrate with Facebook. Source: https://developers.facebook.com/blog/post/2013/04/18/next-evolution-of-facebook-platform-for-mobile/
Oh, and Facebook acquired the largest mobile app development platform in the market: Parse.com who powers +100,000 apps. Not only do they already have the top apps, but they have mid-level apps too... They are getting ready to CRUSH the mobile ad network play and everyone in the mobile ad industry knows it. Source: http://www.wired.com/wiredenterprise/2013/09/facebook-and-parse/
Now with one line of code, those apps can run Facebook ads, and Facebook can begin to monetize users off Facebook and even users who never had a Facebook account. BOOM.
"The takeaway is that at least 50% of Facebook's claimed monthly users probably don't even look at the app. "
-- With the knowledge above it really doesn't matter if users are ON Facebook, huh? Facebook is coming to them in the apps they already use and Facebook is already embedded into those apps.
Questions?
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