Why Did Facebook Buy WhatsApp? Dwindling Supply Of Options To Grab Hundreds Of Millions Of Users ... That Are For Sale

That's one reason ... but here are a few more .... 

1. 450M active users (Source: NY Times)

2. Adding 1M users daily

3. 70% of MAU use the service daily (Source: TechCrunch)

4. WhatsApp offers users in Europe, Brazil and other emerging markets (= net new audience) (Source: Gravity/Techcrunch)

5. Nearly 200 minutes of usage each week (Source: Mobidia)

6. Facebook gets how to monetize mobile through paid advertising without wrecking the user experience. (In Q4 2013 they crossed over from 49% of revenue from mobile to 53% from a base of 945M mobile monthly active users) Source: Facebook, TechCrunch

 

Why $16B to $19B? I am not a financial analyst, but here are a few thoughts:

- Facebook generated $1.37B in mobile revenue in Q4 2013 on a base of 945M users ... annualized that is $5.80/MAU (monthly active user)

- WhatsApp already generates $1/user for a chunk of their users through a subscription fee (less fee to app store?)

- If WhatsApp users can be monetized at the same value, that adds another 50% approximately in mobile ad revenue

- Facebook reported 914 minutes of use on mobile per month in 2013 (Source: allthingsd.com)

- According to Mobidia, only Kakao Talk has more

- WhatsApp is already located in Si Valley

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Three Steps To Combat Elusive Mobile KPIs And Demonstrate Performance

First, the good news: Mobile marketing is maturing within organizations. More marketers than ever have mobile programs in place, and they are shifting from testing to “see what happens” to the more strategic, and Tim Gunn-recommended, “make it work.”

Now for the bad news: Marketers have to demonstrate whether their mobile programs are, in fact, working. And in a still-evolving industry that lacks measurement standards, coupled with marketers who are just starting to measure strategically, this is no easy task.  

But it can be done! Our advice to marketers is this: Start by benchmarking against yourself. Here are the three steps to help you set the right baselines:

  1. Set up a mobile dashboard. You’re going to need a clear view of your data to develop consistent measures. And for mobile, this requires a feature-rich dashboard with the right level of granularity. What does your mobile dashboard need to have? New filters like operating system (OS) and app version, new data sources like app review sentiment, and cross-channel measurement capabilities to demonstrate mobile’s full impact.  
  2. Establish your baselines. So many variables impact the success of any one company’s mobile program — from its stage of mobile maturity to its audience to the campaign's creative. To make sure you land on the right baseline for your company, create a measurement plan that defines which KPIs matter for your goal and what the right frequency of tracking is based on the longevity of the program or introduction of new factors.
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Mobile App Developers: Stop Capturing Unnecessary Data Before Regulators Stop You

The findings presented in an article by German magazine Computerwoche published on Feb 11, 2014, are a forceful reminder that messages about excessive data capture via mobile apps seem to have gone unheeded so far.  As reported, tests by TÜV Trust IT established that “almost one in two mobile apps suck up data unnecessarily”.

What’s “unnecessary” of course depends on your viewpoint: it may seem unnecessary to me if my mobile email app captures my location; the provider of the app, on the other hand, could be capturing the information to provide me with a better service and/or to make money from selling such data to a third party. The trouble is that I don’t know, and I don’t have a choice if I want to use the app. From a consumer perspective, this is not a satisfactory situation; I’d even go as far as calling it unacceptable. Not that it matters what I feel; but privacy advocates and regulators are increasingly taking notice. Unless app providers take voluntary measures, they may see their data capture habits curtailed by regulation to a greater degree than would otherwise be the case.

Let’s step back a moment and consider why so many mobile apps capture more data than is strictly speaking necessary for the functioning of the app:

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