Facebook has launched an app store to monetize it further. But can it be as successful as Apple Store and Google Play that was introduced recently
Facebook is battling a tough battle. At the time when its IPO is making headlines across the world, the social networking giant is making every effort to improve its business foundation. It is also trying to monetize it in a way that it starts generating higher revenues.
The company is already struggling to monetize Facebook app for smartphones and other mobile devices. More and more people are turning to mobile handsets for accessing their Facebook accounts and this is becoming problematic for Facebook.
Despite having around 900 million users Facebook is still struggling to find a way to monetize Facebook on mobile phones. It is said that around one third Facebook users come through mobile phones and Facebook hasn’t find a way to monetize its website on mobile phones.
Despite being valued around $100 billion, Facebook’s earning potential is still thought to be very low. Facebook had $1 billion in net income on $3.71 billion in 2011. The company’s revenues grew 87 percent year-over-year from the 2010, which in turn more than doubled from the year before. Payments and fees revenue made up $557 million or about 15 percent of revenues for all of 2011, showing that the company is still heavily dependent on display advertising. Ads made up $3.154 billion in revenue. Just to note, Facebook has $3.91 billion in cash and marketable securities.
Now to improve its money making potential the social networking giant is launching an app Center and claims that it will be its hub to explore great apps. Facebook has suggested that like Apple Apps store, Facebook developers will be able to charge fee for apps sold in the store in the near future.
The Facebook App Center will be useful for both iOS devices as well as Android devices. A company press release said, “From the mobile App Center, users can browse apps that are compatible with their device, and if a mobile app requires installation, they will be sent to download the app from the App Store or Google Play.” So Apple is trying to find out more ways to monetize the vast potential it has with more than 900 registered users.