Facebook analysts talked about the effectiveness of advertising on Zuckerberg’s social network.
CFO David Ebersman believes that developers can earn significantly more by using advertising on Facebook. 40% of the applications included in the cash top 100 were advertised on Facebook (unfortunately, it is unknown how much the social network contributed to placement in the top).
In general, over the last quarter, the effectiveness of mobile app advertising on Facebook has increased dramatically: the CTR increased 4 times compared to December 2012 (from 0.45% to 1.86%). At the same time, the cost per thousand impressions doubled (from $3.22 to $5.98).
As a result, 30% of Facebook’s profit ($375 million out of $1.25 billion) is generated by mobile advertising from developers. Most of it is accounted for by installations. For the first quarter of 2013, this is about 25 million downloads in the App Store and Google Play for 3,800 developers.