Tagged: facebook

Figure out how to monetize mobile

KPCB‘s Mary Meeker did a terrific presentation at D10 last week. You can go over the deck yourself, it’s available below.

I’ll point out some of the highlights:

  • 1.1B Global Mobile 3G Subscribers, 37% Growth, Q4 – @ Only 18% of Mobile Subscribers. Impressive 29% of USA Adults Own Tablet / eReader,Up from 2% Less Than Three Years Ago. Despite Tremendous Ramp So Far,Smartphone User Adoption Has Huge Upside.
  • Global Mobile Traffic Growing Rapidly to 10% of Internet Traffic
  • Rapidly Growing Mobile Internet Usage SurpassedMore Highly Monetized Desktop Internet Usage in May, 2012, in India
  • eCPMs 5x Lower on Mobile than Desktop
  • ARPU (Average Revenue per User) 1.7-5x Lower on Mobile than Desktop

It seems that monetizing mobile went from being an opportunity to a necessity for survival.

KPCB Internet Trends 2012 by Kleiner Perkins Caufield & Byers

FB

Credit: Zef Nikolla

Today Facebook became a public company. This is not only a great moment for social media but for venture capital, Silicon Valley and entrepreneurship.

Congratulations to all of you who made it happen. Thanks for keeping the dream alive.

Farmville animals

Farmville animals: cute but not very productive
Farmville animals: cute but not very productive

A lot has happened since my last post. I have a lot to thank to Lisa Chan, Zynga’s blogger, who featured it.

I’ll cover the impact it had in my personal life in a later post. Today,  let’s figure out the economics of animals on Farmville.

Are they there just to look pretty? Should I sell them, ignore them, buy more?

We’ll work with the same assumptions we used for the treeconomics:

  • Investment period and residual value: the animal is sold for its residual value after 90 days.
  • Discount rate: to simplify I’ll do a comparison of investments.
  • Available investments:  at this point only the cow, chicken and sheep are available to purchase.

First we’ll compare the animals among themselves to see which one has the highest daily revenue:

Cost Revenue/Harvest Days to Harvest Daily Revenue Daily Rev/ Invested $ Days to Payback
Sheep $700.0 $28.0 3 $9.33 1.33% 75
Chicken $400.0 $8.0 1 $8.00 2.00% 50
Cow $300.0 $6.0 1 $6.00 2.00% 50

Not surprisingly the sheep wins.  On “bang per buck” (or ROI) both the chicken and cow look better though.

Let’s compare a 90 day investment in a square full of sheeps with some crops and trees. Don’t let cartoon logic fool you, you can actually fit 16 sheeps or chicken in a single Farmville square. Only 4 cows though.

Daily Profit Total Profit Initial investment Residual Value Profit
Date tree square $368.0 $33,120.0 $12,800.0 $640.0 $20,960.0
Tomatoes $174.0 $15,660.0 $15,660.0
Raspberries $132.0 $11,880.0 $11,880.0
Chicken square $128.0 $11,520.0 $6,400.0 $320.0 $5,440.0
Sheep square $149.3 $13,440.0 $11,200.0 $560.0 $2,800.0
Cow square $24.0 $2,160.0 $1,200.0 $60.0 $1,020.0

It seems that animals are not a great investment. It turns out that the best among them is a chicken square, given that the cost is much lower than a sheep square. However, it is still lower than, for example, pineapples.

Animals in Farmville will earn you badges but won’t make you rich. They also make a beautiful gift for your friends.