Facebook ad sales hit by low traffic on video apps like Socialcam

Facebook is getting hit from every side of the park. After seeing its stock plummet gradually to less than 50 percent of the initial public offering price, it has now received bad news on its video application business. One of the major sources of income to the social network is ad sales from video apps.

According to app trend tracking company AppData, two of Facebook’s top video apps have received lower hits in the last two months than the rest of past 2012. In a report, the tracker stated that the number monthly users on previously-number one video app Socialcam has decreased drastically from 70 Million to almost 16.6 Million.

Earlier in summers this year, the application was the most used on Facebook’s wide platform. However, now Socialcam is not even in the top 15. The reasons behind the decrease in its use are said to be the new settings and options that have changed the user experience completely.

Upon its launch, the app helped Facebook users find the videos his/her friends have watched recently. This increased the graph of its usage and the social network on the whole. However, after Facebook altered the settings, giving the account holders the power to restrict the viewership of recently watched reels, the traffic decreased to an all-time low.

The second most used video application was Viddy that has received only 5 Million hits since mid-June, from 30 Million. Both Viddy and Socialcam accumulated more than 100 Million monthly users.

Video apps boast two different kinds of ads sales modules. First is the in-app sales that is a part of Farmville by Zynga, Inc. The other is the ad placement around the sides of the applications. Though Socialcam lacks in-app functionality, its ads placement feature has driven the revenues in fast pace.

Zynga still remains the most profit generating limb for Facebook and attracts more than 230 Million users at least once a month. Its operations accounted for 4 percent of total revenues for Facebook in the first quarter.

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Posted by Usman Khalid on Sep 8 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.