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I wonder how much of that revenue came from VC-backed startups that just want to acquire a user-base whatever the cost. Mobile app install costs $4+ for iPad an
by sinatra 11y ago
I wonder how much of that revenue came from VC-backed startups that just want to acquire a user-base whatever the cost. Mobile app install costs $4+ for iPad and $2.5+ for iPhone. Even at a 100% install to launch rate and a 5% conversion rate, companies need to make $80 per paying users for the numbers to work. This just doesn't seem sustainable to me.
- julianpye 11y agoVery interesting figures. Can you share the sources?
- onewaystreet 11y agoMost of the app ads you see on Facebook are for games which is how they can justify spending $4+ (the big mobile game companies make billions in revenue).
- physcab 11y agoIf you run a gaming company, you're most likely tracking everything you possibly can about who is spending in your game. If you are running a facebook campaign, you will buy either on volume (don't care what the price is, just give me the user, ie Uber), ROI (make sure the LTV of the user is less than the CPI), or profit (make sure we're still making money even after apple's cut) Facebook allows you to form a closed loop feedback system. If Uber knows the LTV of a customer is $100 and CPI's on FB are $10, go to the bank and get as many of those customers you can.