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BizReport : Mobile Marketing : June 18, 2012


Mobile call app could net Facebook $800 million a year in revenue

Facebook needs to up its mobile game, and mobile VoIP firm Rebtel thinks they know exactly how this can be achieved with a mobile call app.

by Helen Leggatt

According to research firm Strand Consult, Facebook is already "transporting more mobile traffic, number of messages and time spent online than the world's largest operator (China Mobile)".

This is the reason, says Andreas Bernstrom, CEO of mobile VoIP firm Rebtel, that Facebook should offer international calling, as well as being able to earn a significant amount in revenues.

"Everyone has been critical of Facebook's inability to monetize on mobile, but the social network has a massive opportunity to leverage its vast user base through international calling," said Bernstrom.

"Given its attractive social graph, even if Facebook didn't reach the same conversion rates as Skype, the huge call volume associated with even a fraction of its users could result in dramatic revenues for the company."

According to Rebtel, Facebook has the potential to generate upwards of $64 million each month, or close to $800 million a year in revenues, based on Skype's ARPU of around $8 per user per month.

The announcement came as Facebook admitted growth in mobile use could hurt future advertising revenue.

Facebook desperately needs to up their mobile game. Ahead of its IPO, Facebook told potential investors in a statement: "If users increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetisation strategies for our mobile users, or if we incur excessive expenses in this effort, our financial performance and ability to grow revenue would be negatively affected."

Tags: mobile app, mobile marketing, revenue, social marketing, social network










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