4 ms·

A lot of people misunderstood you. physcab isn't talking about gaming on Facebook. He's talking about Game of War and Clash of Clans, which are both mobile game

A lot of people misunderstood you. physcab isn't talking about gaming on Facebook. He's talking about Game of War and Clash of Clans, which are both mobile games. Like another poster has said, games are 75% of the top grossing on the App Store. And absolutely most of Facebook's revenue, if not literally all of it, is mobile gaming ads (especially slot machines). I'm not sure if the gaming industry is driving the growth per se. Based on my experience, it's really people buying into smartphones and paying for software (in the form of IAP in games) for the first time in their lives. To be pedantic, people going upmarket in Android is probably their source of growth in revenue. iOS has been pretty rich for a while now and it's unlikely that there are users who are spending more or more users who have started spending. But Android had a HUGE amount of space to grow in terms of Android phone owners who actually spent money (based on numbers I've seen in 2015). I would imagine that's where the money's coming from—the average Android user has gotten a little richer, started spending more on IAP on Android, and therefore game developers bid higher on ads targeting them. It's like Upstream Color, except instead of a mind altering slug drug, it's Slots Vacation.

acchow 11y ago
> He's talking about Game of War and Clash of Clans, which are both mobile games. Like another poster has said, games are 75% of the top grossing on the App Store. And absolutely most of Facebook's revenue, if not literally all of it, is mobile gaming ads (especially slot machines). This is false. Facebook's revenue in 2015 was $17.9 billion. Total mobile gaming revenue for 2015 was approximately $25 billion [1]. Unless mobile game companies spend most of their revenue on Facebook ads, this can't be true. [1] http://fortune.com/2015/01/15/mobile-console-game-revenues-2015/ http://fortune.com/2015/01/15/mobile-console-game-revenues-2...
- archgoon 11y ago
  The poster claimed the growth was being driven by gaming. This quarter showed a 30% revenue increase over the previous year. If the gaming industry were to be responsible for the entire growth, they would only need to have spent 1.2 billion more than they had the previous year in Q4. If facebook were to see a 30% increase this year overall, they would only need to spend about $6 billion more this year (or about 25% of their profits). Given that Supercell spends about 50% of their profits on marketing overall (which amounts to $500 million) this is plausible. Especially since you can further reduce the total cost by noting that physcab only stated that most of the growth was being fueled by gaming. http://venturebeat.com/2015/04/27/why-king-and-supercell-spent-nearly-500m-marketing-their-games-and-how-you-can-spend-way-less/ http://venturebeat.com/2015/04/27/why-king-and-supercell-spe... EDIT: However, after reflecting on this, this seems entirely backwards. I believe that physcab was claiming that it was games displaying mobile ads. Thus Facebook is paying the gaming industry, not the other way around.

acchow 11y ago

> He's talking about Game of War and Clash of Clans, which are both mobile games. Like another poster has said, games are 75% of the top grossing on the App Store. And absolutely most of Facebook's revenue, if not literally all of it, is mobile gaming ads (especially slot machines). This is false. Facebook's revenue in 2015 was $17.9 billion. Total mobile gaming revenue for 2015 was approximately $25 billion [1]. Unless mobile game companies spend most of their revenue on Facebook ads, this can't be true. [1] http://fortune.com/2015/01/15/mobile-console-game-revenues-2015/ http://fortune.com/2015/01/15/mobile-console-game-revenues-2...

archgoon 11y ago
The poster claimed the growth was being driven by gaming. This quarter showed a 30% revenue increase over the previous year. If the gaming industry were to be responsible for the entire growth, they would only need to have spent 1.2 billion more than they had the previous year in Q4. If facebook were to see a 30% increase this year overall, they would only need to spend about $6 billion more this year (or about 25% of their profits). Given that Supercell spends about 50% of their profits on marketing overall (which amounts to $500 million) this is plausible. Especially since you can further reduce the total cost by noting that physcab only stated that most of the growth was being fueled by gaming. http://venturebeat.com/2015/04/27/why-king-and-supercell-spent-nearly-500m-marketing-their-games-and-how-you-can-spend-way-less/ http://venturebeat.com/2015/04/27/why-king-and-supercell-spe... EDIT: However, after reflecting on this, this seems entirely backwards. I believe that physcab was claiming that it was games displaying mobile ads. Thus Facebook is paying the gaming industry, not the other way around.