DD UltraFlix Running Ads on Mobile platform !! htt
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MASSIVE VALUATIONS: In the past year, well-established mobile-social networks like Facebook, Twitter, LinkedIn, and Instagram all made massive strides toward monetizing their mobile apps and sites by selling ads. And it is paying off. For example, over 70% of Twitter's global revenue comes from mobile.
By incorporating some ad space, many of these popular apps have strengthened their mobile revenue potential after previously having no real revenue stream. This has helped Instagram and other mobile-centric apps earn multi-million or even billion dollar valuations. While some users may be put off by this strategy, it's clearly the strongest revenue model. Tinder already has claimed that it wants to remain a free app.
While in-app purchases can also drive revenue on mobile-social apps, this model is not as lucrative as advertising. Messaging app and sticker maven LINE generates just $0.10 per user from sticker sales from its Asia-Pacific audience, while Facebook brings in over $0.80 per user in the same region from ads. Tinder's move toward an ad revenue model is just the latest in a line of mobile-social apps that have pursued this approach, and come away with big valuations and big expectations for growth. (Bloomberg Businessweek)