New Monetization Options for Facebook Apps

This article discusses a new payments service called Gambit, launched by Noah Kagan, focused on virtual currency-based Facebook apps and OpenSocial applications. The service supports credit cards, mobile payments, and offers-based monetization.

• Gambit aims to provide app developers with a new and diverse avenue for monetizing their Facebook apps.
• The article highlights the growing trend of virtual currency-based Facebook apps and the need for effective monetization strategies.

Analyzing the Monetization Funnel for Facebook Apps

The author presents a spreadsheet model that outlines a step-by-step breakdown of the monetization funnel for Facebook apps. The model focuses on offers-driven monetization and tracks various metrics to measure the effectiveness of the strategy.

• Total Installs/Registered Users: The initial number of users who download and register for the Facebook app.
• Monthly Active Uniques (MAU): The number of unique users who actively engage with the Facebook app on a monthly basis.
• Daily Active Uniques (DAU): The number of unique users who actively engage with the Facebook app on a daily basis.
• Daily Paypage Uniques: The number of unique users who visit the payment page where they can purchase virtual currency or complete offers.
• Daily Lead Clickthroughs: The number of unique users who click on offers to start the lead generation process.
• Daily Net Lead Completions: The number of unique users who successfully complete offers, minus any chargebacks.
• Daily Revenue: The total revenue generated from completed offers on a daily basis.
• Monthly Revenue: The total revenue generated from completed offers on a monthly basis.

Understanding Lead Generation for Facebook Apps

The article explains the concept of lead generation, where users can opt-in for offers in exchange for virtual currency. This method allows users to earn in-app currency without using credit cards.

• Lead generation offers can involve signing up for subscriptions, providing contact information, or completing surveys.
• The article emphasizes the importance of tracking lead clickthrough rates, completion rates, and revenue per lead to understand the effectiveness of lead generation strategies.

Example Numbers for Facebook App Monetization

The article provides example numbers derived from a successful Facebook app, showcasing the potential revenue generated through offer-based monetization.

total installs	15,000,000
monthly active uniques	3,000,000
daily active uniques	450,000
daily paypage uniques	45,000
daily lead clickthroughs	13,500
daily net lead completions	1,890
daily revenue	$5,670.00
monthly revenue	$172,935.00

Defining App CPM (ACPM)

The author discusses the concept of App CPM (ACPM), a metric used in app monetization, and highlights the difference between ACPM and the traditional online ad CPM.

• ACPM is calculated by dividing daily revenue by daily uniques to the paypage and multiplying by 1000.
• ACPM focuses on users who visit the payment page, while traditional CPM considers ad impressions.

Calculating ARPU for Facebook Apps

The article introduces Average Revenue Per User (ARPU), another important metric for app monetization, and explains its significance in measuring overall app performance.

• ARPU is calculated by dividing total revenue by the number of active users.
• ARPU considers all active users, including those who haven't visited the payments page, offering a more comprehensive view of revenue generation.

Conclusion: The Future of Facebook App Monetization

The article concludes by discussing the increasing popularity of app monetization platforms and the importance of balancing monetization strategies with user experience.

• The author suggests focusing on increasing both ARPU and ACPM, while ensuring user engagement and retention.
• The article emphasizes the importance of analyzing user behavior and optimizing monetization strategies to maximize revenue without compromising the user experience.