Archive for May 10th, 2012
NEW YORK: Facebook says the number of people logging in is continuing to grow more quickly than the number of ads delivered.
This is in part because more people are using Facebook on mobile devices, where it shows a very small number of ads, Facebook said Wednesday. The finding implies that Facebook has room to grow in the still-nascent mobile advertising space.
Facebook says it saw that trend in the first quarter, and that has continued in the current quarter.
Facebook Inc., which is expected to begin trading publicly next week, added three paragraphs on mobile usage to regulatory filings. The changes came after executives met with prospective investors in New York and Boston ahead of its initial public offering of stock. The additions were likely in response to questions from investors.
The Menlo Park, Calif.-based company is expected to price its IPO next Thursday and start trading on the Nasdaq Stock Market on Friday. It said last week that it expects its shares to price at $28 to $35 each, which could value the company at close to $100 billion.
SAN FRANCISCO: Facebook Inc unveiled a new hub for consumers to find games and other apps on the social network, including its first storefront for selling paid apps, in the company’s latest effort to expand the ways its makes money from its massive audience.
The new App Center, which Facebook said will launch in the next few weeks, comes as the company is preparing an initial public offering that would value the company between $77 billion and $96 billion.
A key concern for investors is Facebook’s slowing revenue growth, due in part to the widening trend of consumers accessing its service on smartphones, where Facebook provides limited ads.
In an amended prospectus filed with the Securities and Exchange Commission on Wednesday, Facebook said the popularity of mobile devices has caused its number of daily users to grow faster than the number of ads it is delivering.
Facebook described the number of mobile ads it has recently begun showing to users as “immaterial.”
Facebook makes the vast majority of its revenue from online ads, although it also collects fees when consumers purchase goods from within social apps, such as Zynga’s Farmville.
The App Center will, for the first time, allow software developers to sell apps to consumers directly on Facebook.
Consumers will need to use Facebook Credits, the company’s payment system, to purchase the apps and Facebook will take a 30 per cent cut of the revenue as it does with in-app purchases, said Facebook spokeswoman Malorie Lucich.
Facebook is introducing the app service to give software developers additional options, but the company expects in-app purchases to remain more prevalent on the social network, said Lucich.
Apps, ranging from social games to music services, are popular activities on Facebook, the world’s No.1 online social network with roughly 900 million users. According to the company, 200 of the apps that are available on Facebook have more than 1 million users.
The App Center will feature apps that designed for PCs as well as for mobile devices such as Apple Inc iPhones and Android smartphones. If a mobile app requires installation for the mobile device, Facebook said it will direct users to Apple’s App Store or Google Inc’s Play store to download the app.
The App Center will showcase apps based on the quality scores that users give apps and other data Facebook collects, such as how often and how long people use apps. Each user will see a different, customized version of the App Center, rather than one standard version of the App Center.