Last year, Facebook Inc (NASDAQ:FB) forced its mobile users to install its Messenger app in order to send or receive messages on its social platform. This caused a massive stir as people don’t like to get forced into anything. But, Facebook Inc (NASDAQ:FB) was persistent and Mark Zuckerberg insisted that it was for the good of users. It will help the company to craft the best user experience. But experts knew that Facebook Inc (NASDAQ:FB) wants to surge its mobile ads revenues.
When a user installs an app on his/her mobile device, his information, interest, information of other apps and a lot of demographic data goes to the server. This helps the companies a lot to target the customers with ads. Facebook Inc (NASDAQ:FB)’s mobile ads revenue has touched $2.5 billion. An article on Forbes said that Facebook Inc (NASDAQ:FB) is not so frank about its mobile ads policies, but it is now an open secret that almost half of its mobile ads revenues are coming from app install ads.
When you open the Facebook Inc (NASDAQ:FB) news feeds on your mobile, you must have seen your feeds inundated with suggestions for apps. These are app install ads which directly link to app stores of Android, iOS or Windows.
The source mentioned an email from Snapchat CEO who predicted a few months back that Facebook Inc (NASDAQ:FB)’s mobile revenue is based on app install ads, which is a house of cards doomed to collapse. But that is not the case till yet, rather app install ads have gone up to $6 billion market.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.