With news cycle ratcheting up prior to Facebook's IPO tomorrow, mobile ad company Velti sees good times ahead for Mark Zuckerbery's merry band.
Writing a column on Forbes, CMO Krishna Subramanian reckons that one banner ad on Facebook's mobile app could generate $2 billion a year.
Do the math
His calculation is a little back of the envelope, but it goes as such...
There are currently 83 million users of Facebook's mobile app. On average, they spend 441 minutes a month on the app.
So, if you served a performance ad impression every 60 seconds - with an eCPM of 50 cents - you'd generate $7.9 million per month.
Serving a premium brand advert, at $10 eCPM, would generate $158 million per month, however. (The assumption is that the slot is split between these two models as there's unlikely to be sufficient brand inventory.)
The combined result would be $1.99 billion in revenue per year.
Range of accuracy
Obviously, there are some interesting assumptions in this calculation; notably the 50:50 split between performance and brand advertising, and the frequency of ad rotation.
Perhaps, it would be more correct to say that Facebook could make between $95 million (for pure performance) and $2 billion a year.
That's not quite so catchy though.
[source: Forbes]
News
Contributing Editor
A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.
Related Articles
Data & Research
Oct 23rd, 2012
Kindle Fire offers some of the best click through rates, reckons Velti
Top Stories
Feature
Mar 25th, 2024
5 takeaways from GDC 2024: The games industry reckons with key challenges, Godot competes with Unity, and AI was the big trend without the big announcements
Feature
Mar 25th, 2024
Hot Five: Epic’s app store plans, Turkey’s tax exemptions, and Call of Duty Warzone: Mobile finally releases globally
Events
Mobidictum Network Lisbon April 2024 | Europe | Apr 16th |
HIT Games Conference Istanbul 2024 | Apr 18th | |
App Promotion Summit London | Europe | Apr 25th |
Dubai GameExpo Summit 2024 | Middle East | May 1st |
Mobidictum Meetup Berlin May 2024 | Europe | May 7th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Israel Mobile Summit 2024 | Middle East | Jun 6th |
Mobidictum Meetup Barcelona September 2024 | Europe | Sep 1st |
Popular Stories
Feature
Mar 25th, 2024
5 takeaways from GDC 2024: The games industry reckons with key challenges, Godot competes with Unity, and AI was the big trend without the big announcements
Interview
Mar 22nd, 2024