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Why Facebook Focused on Messenger, An Insight ?

March 28th, 2015

Facebook MessengerAt the F8 conference, Facebook announced several new products: 1) Messenger platform for developers to create apps that integrate with Messenger; 2) Enhanced Audience Network capabilities that will soon be available on the ad exchange powered by LiveRail; 3) A new SDK (software development kit) for the Internet of Things; 4) support for spherical videos in News Feed and Oculus; and 5) an embedded video player that allows users to share videos to other sites.

Facebook Messenger Platform for Commercial Use
Instant messaging (Facebook owns WhatsApp with 700mn MAUs) can be monetized in Western markets, and it appears that Messenger with 600mm users could lead the way. FB launched the Messenger platform for developers to enable apps development in Messenger. Developers can build apps that improve Messenger content (ie stickers, emojis, sound clips, and photo collage maker, etc). Importantly, FB also launched Messaging for Business that enables eCommerce companies to send messages like order confirmations, delivery time updates and receipts. If the platform takes off , there could be a lot more eCommerce, travel, and payments activity in the app, which will better enable monetization with eCommerce related services (advertising, deal notifications, payments, etc.).

Facebook Advertising Network Gets Stronger
As expected, Facebook will extend Facebook targeting capabilities to the Audience Network using the LiveRail platform to power Facebook’s ad exchange. The Facebook Audience Network enables advertisers to serve their ads in other mobile apps beyond Facebook, while leveraging Facebook’s demographic targeting data. LiveRail will serve all of the ad formats available through the Facebook Audience Network, and video ads will soon be added. Facebook also indicated that native ads that look like organic content now account for half of the inventory on the Audience Network, with publishers seeing 7x higher CPM vs banner ads. LiveRail ad exchange will compete with Google’s DoubleClick and Twitter’s MoPub

Facebook introduced new software development kit (SDK) for its Parse mobile app development platform with the objective of making it easier for developers to build apps that work with Internet-connected devices. For example, a company used Parse to build a WiFi connected garage opener that is controlled by an app.

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