Today in Social

Facebook officially launched its App Center for the web and mobile app discovery and promotion. It is distinctly not an app store – the mobile version funnels users to Apple’s and Google’s. Facebook crowed about how much traffic it drives to Apple, and how many high-grossing Apple apps integrate with Facebook. Is that bravado or peace-making? Regardless, while Facebook may be able to get an affiliate fee out of apps purchased at Apple or Google, this move is clearly not the end-run aimed at using Facebook Credits without paying Apple’s 30 percent cut. I still think Facebook is missing out on an obvious revenue opportunity: letting app developers pay for promotion along the lines of organic versus paid search. It’s not payola if the process is transparent to users and developers, and if Facebook were effective at presenting truly relevant results the way Google polices paid search relevance.

Relevant Analyst
P1040724

David Card

VP Research Gigaom Research

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