The Year in F2P: A Recap

This year, I was lucky enough to attend Casual Connect USA, which was just a couple of blocks from where I intern.

I was stoked to go.

Really stoked.

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Really, really stoked.

I attended a number of sessions, but out of all of them, my favorite was definitely Free-2-Play Games: A Year in Review, featuring Dave Rohrl (Founder & CEO, GameHound Inc.), Juan Gril (Studio Manager, Joju Games) and Steve Meretzky (VP of Creative, GSN). I found out during their presentation that this is a talk they’ve been doing for a couple of years now, but every year is completely different.

Here’s what they discussed, in fabulous TL;DR form:

1. Simulation games are getting more and more complex. Unlike Hay DayFarmville is pretty simple. Just plant your crops, grow them and build your farm, with the option of spending the money you earn to decorate your farm. Hay Day, on the other hand, involves this and more like cooking, boat orders, quests, etc. The loops for these types of games are getting more intricate.

  • Though these games have incredible staying power, if you want to try and successfully develop and publish your own simulation game, you’re going to need a lot of resources, since the production costs are very high.

2. Puzzle games have been very successful as casual games, but there are some obvious differences between indie puzzle games and commercial puzzle games. Traction is one of these differences. Just think: Voro, a fairly elaborate and addicting game, just doesn’t have the DAUs as sillier puzzles like Pet Rescue Saga or Farm Heroes Saga. Mass market themes tend to do better, and being able to achieve victory in different ways (instead of just one way that can get tedious if too difficult).

3. No one is copying Supercell’s Clash of Clans successfully. Even though there’s a website dedicated to featuring Clash of Clans clones, none of these games have been able to crack the code as gracefully. The only exception is Boom Beach which is developed by… *drumroll*… Supercell! Therefore, the opportunity to make another Clash of Clans is still huge… we’re waiting!

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4. There’s not much to say about social casino except for the fact that it’s making BANK. These are the leaders in each subcategory of social casino…

  • Slots Only
    • Slotomania, Jackpot Party Casino
  • Bingo Only
    • Bingo Blitz, Bingo Bash
  • Poker Only
    • Zynga Poker
  • Multiple Genres
    • Doubledown Casino, Big Fish Casino, GSN Casino

Unfortunately, these are heavyweights in the social casino genre, which means that it is hard for newcomers to try and compete. If you want to try, it’s best to draw inspiration from land-based casino as well as standard F2P gaming techniques (i.e. unlocking new machines, social elements, time-limited content, etc.).

5. Micro Games like Flappy Bird and Piano Tiles are stupidly popular. Because they attract such large audiences, ads are usually the main monetization scheme. Though these games, which can sometimes be developed by as few as one person, might be seen as threats to some gaming companies. But companies like Gameloft (with Ninja Jump) are embracing this formula by publishing their own micro games for the sake of cross-promoting their other games.

6. Hearthstone is one of the few games out there that is doing F2P as fairly as possible. Sure, you’ll have an advantage if you buy cards, but players who don’t pay aren’t at a complete loss. There are two different modes to play in Hearthstone – one which favors payers and the other which favors players. It’s something you don’t see too often in F2P. The game also does away with checklists, something that many, many F2P games use. They don’t leave a lot to the imagination, so Hearthstone replaces it with more time-based objectives, like rewarding users for being in the game for an hour or playing x number of games.

Now that you’ve reached the end of this post, here’s an even shorter TL;DR:

Simulation games like Hay Day are becoming more complex and need a lot of resources to keep players happy. Puzzle games are more likely to be successful if you reward players little by little. The potential for more Clash of Clans games is huge — so go start developing! Social casino makes buckets of cash, but is very competitive. Micro games are being used more frequently to natively cross-promote games. Hearthstone is doing F2P right.

Hope you learned a thing or two more about F2P. Happy (casual) gaming!

In defense of dumb apps

Last week, while scrolling through my Twitter feed, I saw this tweet from App Annie:

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Though I’m not particularly enamored with Slingshot, what caught my eye about this tweet were the two other top searches for Kim Kardashian and Yo, referring to two apps that have skyrocketed in popularity within the past couple of weeks.

In case you don’t know what these apps are, Kim Kardashian refers to Glu Games’s Kim Kardashian: Hollywood app, where you can create your own celebrity as well as date and dump some of Hollywood’s most eligible bachelors like Riff Raff and Lil Wayne. In other words, this game is a re-skin of their game Stardom: Hollywood, released in early 2013.

And Yo? It doesn’t get as simple as an app meant for saying “Yo” to your friends. Just choose some friends in your contact list and the app will send them a notification, letting them know that you said “yo.” (Yes, this is really an app).

As embarrassed as I am for the state of apps right now, there’s something to be said about these “dumb apps” that suddenly go viral. Here’s why:

1. They keep the mobile app ecosystem interesting

Though we can try and extract as much data as possible from our cohorts, apps like Flappy Bird and Rainbow Unicorn Attack are testaments to the fact that we still do not have an “exact formula” for developing instant hits for mobile. What’s great about this is that the mobile app ecosystem yet remains to be monopolized (and hopefully never will be!) because people can still try their hand at this mobile app lottery and see if they’ll get lucky with the next Candy Crush Saga.

2. They encourage creativity and entrepreneurship

Time and time again, I continue to ask myself “Why didn’t I think of that?” especially when it comes to mobile apps. The fact that these apps are so simple provides even more motivational fodder to hunker down and develop an app. It is true, however, that with stupid successful apps come lots of copies (remember when the App Store started to reject all of those Flappy Bird copies?) which defeat the purpose of originality and creativity. Nevertheless, if there are people who think they can make a better app and act upon their ideas, then mobile app entrepreneurship will continue to thrive.

3. Let’s face it — they make us laugh

As much as I think Yo is the silliest, most useless app in the world… I got a good chuckle out of it when my friend first showed it to me. In fact, a couple of students from Carnegie Mellon decided to launch Yo, Hodor, an app that lets you greet your friends with a friendly “Hodor!” which I thought was hilarious. Whether the creators of Yo are complete trolls are not, it gives people something funny to talk about and roll their eyes at, letting people bond over the silliness of Yo or the ridiculousness of Kim Kardashian: Hollywood.

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And maybe that isn’t so bad after all.

Kittens that drive mobile revenue?

Even though I don’t usually watch television, when I was in Japan this past week, I found myself watching more than I normally would. Considering that I had no wifi access, perhaps this was a natural and rather unsurprising replacement to cater to my attention span. But aside from the fact that I had a little more free time than usual, I was also drawn to the t.v. in Japan because it was interesting to see the types of commercials that ran, particularly the ones about mobile games and apps.

From what I’ve seen and know of, the commercials seen on American television programming are usually about cars, alcohol and fast food. This is not to say that Japan doesn’t run these types of commercials either. In fact, here’s a charming commercial from Kirin Beer starring George Clooney:

And this isn’t to say that the U.S. doesn’t run mobile-related ads either. Here’s a commercial that Google has recently broadcasted to show all that Google Play has to offer:

Not to mention, in America, if an upcoming movie, a chain restaurant or an established company has an app in the App Store or the Google Play Store, they usually tack on a quick 5-second announcement about it at the end of the commercial.

But in Japan, there are 15 second spots dedicated solely to just mobile apps. Gunosy (グノシ), for example, is a news app that condenses its stories into easy-to-read formats. Think the lovechild of Circa and Nick D’Alosio’s Summly. According to Google Play, the app has anywhere from 500,000 to 1,000,000 downloads. There’s an English version of the app too, but it’s done dismally in the United States. And even in Japan, where it’s most downloaded, it’s ranked in the top 125-150 apps* in the news category, not overall. Yet, as you can see from the Gunosy ad below, effort did go into the production:

Monster Strike, on the other hand, is a mobile game that’s doing quite well in Japan — ranked consistently in the top 15 for games and top 25 for overall apps (in the App Store). Compared to Gunosy, it makes a little more sense that Monster Strike would be running television ads, especially since this app ranks in the top 3 for grossing apps in the action, games, role playing and overall categories.*

There’s also the adorable commercials that COLOPL, Inc. runs for its game, ほしの島のにゃんこ (Hoshi no Shima no Nyanko) or, loosely translated, Cats on Star Island. Download ranks are all over the board for categories, including Family and Games. On the other hand, grossing ranks are fairly straight forward, coming in at numero uno in the kids and 9-11 age groups, as well as number three in family. And, after seeing this purrfect commercial, you won’t be too surprised as to why that is:

Aside from these smaller gaming companies, let’s not forget the giants such as Mobage, GREE and Line that continue to dominate the mobile industry in Japan. Puzzles and Dragons, for example, which has made more than $1 billion in profit, can easily expend money on television commercials.

So why all of these television ads? After all, with all the types of cross promotion and in-app ads, why would you bother going through the trouble of casting, producing and broadcasting a commercial just for a mobile app? Even though there are still quite a number of people who use flip phones as opposed to smartphones, for the ones that do have smartphones, they’re more likely to be a pretty passionate app user.

From what I do know about the Japanese app market, Japanese users are more likely to spend money on apps, especially when it comes to free apps that offer in-app purchases. And with so much competition in app stores (like the American App Store), companies need to come up with more ways to stand out. Hence, television commercials. Seeing that the other non-app-related commercials in Japan were about beauty, cleaning or food products, it’s pretty obvious (unfortunately) that these ads are targeted to women — specifically stay-at-home wives who watch television. To reiterate an important (but generalized in this case) statistic in the mobile app world, more females use, download and pay for apps than men. And, frankly, if more women are watching television, then wouldn’t it make sense for these mobile app publishers to advertise on television? Yes, and as long as they’re ok with spending too.

As for America, I haven’t seen too many commercials (if any, really) that are dedicated to just one mobile app. Then again, the so-called “millennial” generation isn’t watching as much television as they are streaming via Netflix or Hulu. Since the mobile app competition is already fairly intense in the states, will we start seeing more mobile app commercials on these streaming platforms? Only time will tell.

* = Data from App Annie

Notable reads from this week

Though I find maybe one or two solid and thought-provoking articles each day, for whatever reason (maybe the Facebook/Twitter gods were smiling down on me), I came across a number of great reads yesterday that I wanted to share. In case you don’t have the time to read all of these articles, I’ve TLDR’ed them for your convenience. Enjoy!

Can Silicon Valley Be Saved?
Published March 6, 2014
TLDR: Though Silicon Valley, particularly San Jose in this case, is home to mega-corporations including eBay, Cisco Systems and Adobe, people don’t really want to live in this area. Some of the reasons that are brought to attention include the lack of a unified public transportation system, little walkability (San Jose’s congestion is the seventh highest in the nation), and barely any culture that attracts tech people who like food, bars and an overall urban atmosphere. Samsung is hoping to contribute to this change with a brand new building that promotes walking instead of driving.

The Ultimate Guide to Solving iOS Battery Drain
Published March 27, 2014
TLDR: My friend Jessie told me about this article and how the author of this blog, Scotty Loveless, worked on the Genius Bar for about two years. Though I already knew that leaving my 3G on in places with poor service drained my battery, I didn’t know about BAR (Background App Refresh) or that quitting my apps actually messed with the phone’s RAM. To get the most out of this article, I advise that you read it somewhere where you won’t be distracted, so you can follow each step in the article.

The Internet’s Telltale Heartbleed
Published April 9, 2014
TLDR: I had read plenty of other articles about Heartbleed, but none of them explained the bug as well as this one. Key takeaways include: 1) Up to 500,000 sites were affected; 2) Heartbleed is scary because you can’t detect whether requests for information are malicious or not; 3) OpenSSL is a volunteer project, and is only overseen by four people; 4) Unless websites have specifically told you to change your password, there isn’t much to be done as of now (maybe wait a little longer, then change all of your passwords).

Will starving artists turn to coding instead of waiting tables?
Published April 11, 2014
TLDR: A feature story on Fractured Atlas, a non-profit in New York that’s looking to help artists get and learn the resources they need in order to become entrepreneurs. Since the program is so new, there haven’t been any Atlas alumni just yet, but it might be worthwhile to keep an eye on this organization.

When the restaurant you Googled Googles you back
Published April 13, 2014
TLDR: A swanky, three-Michelin star restaurant is now catering a more personalized dining experience by doing research on its clientele beforehand. Though it sounds creepy, the intentions are good. Taking a page from the article, “If a particular guest appears to hail from Montana, [the maitre d’] will try to pair up the table with a server who is from Montana.”

300M downloads and $600M in revenue say Google is the ‘loser’s choice’ in mobile games monetization
Published April 14, 2014
TLDR: In a VentureBeat survey, it was announced that when it comes to monetizing their mobile games, developers are using companies like Vungle or AdColony instead. As for which mobile ads proved to be the most annoying, banner ads, notification ads and surveys ranked in the top three.

Hacking the Facebook Hackathon

After my first hackathon, I’ve come to realize that aside from being free to make whatever your heart desires just with some code (though lots of it), hackathons create a perfect environment to GSD or “get shit done.”

I went to the Facebook SoCal Regional Hackathon on Friday with a friend, but we both had our own agendas. While he was planning to finish up a little bit of CS homework before diving into his personal project, I planned to work with some cool jQuery plugins I’ve been meaning to try out, since I haven’t had the time to experiment with web development tools in a while.

After signing in and finding that most of the seats were taken, we sat down near the back next to two UCLA students. We chatted for a little bit and found that none of us had prepared an actual hack for the event just yet, which was slightly reassuring. Though the returning champions from last year were just a couple of tables away from us, it was nice to know that people of all levels are getting involved with hackathons.

The hackathon was probably 99% dudes, but that wasn't going to stop this girl.

The one time we could use Facebook without feeling guilty about ourselves.

Soon enough, the two students next to us had formed a team with two other Bruins, while I continued to work with plugins and my friend hurried to get his CS homework done. From time to time, I listened in and chimed in on the UCLA team’s project, and found myself a little miffed since I decided to opt out of joining a team this time around.

But instead of throwing the towel in and going home, I decided to learn something completely new. Sure, I wasn’t creating a project from the ground up, but I was going to take advantage of this space and wanted to ride the productivity momentum that this environment was generating.

So no, I didn’t exactly “hack” the Facebook Hackathon, but I hacked it for my own benefit. Because, for the next couple of hours, using what I knew about HTML, CSS, APIs and Php, I worked through Tuts+’s Facebook Graph API tutorial, and managed to finish the whole project. Did I make something completely original? No, but in the time I was at the hackathon, I made my first *unofficial* Facebook app and learned how to integrate Facebook logins into just about any web app — not something I would’ve accomplished had I been by myself at my apartment.

Used colors from here

Perfect Facebook color palette brought to you by Design Pieces

I even won a pair of Facebook sweatpants during one of their hourly raffles.

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If you squint just enough, you can make out my name.

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Comfortable and Zuck-approved!

What I’m trying to say is that just because you might not be a whiz programmer doesn’t mean you shouldn’t attend hackathons. You might not be able to attend every hackathon out there — PenApps, for example, requires that you apply formally — but for hackathons that only ask that you RSVP, such as this one and the upcoming LA Hacks (I’ll see you there, if you’re going!), I absolutely encourage you to attend. The truth is that at most hackathons, there are always at least a couple of people who come to hackathons without a team, so don’t worry about not finding one.

And if you feel like you still need to hone in on some skills — just do it, but try to stay at the hackathon, so you get a feel for the environment and structure of a full-fledged hackathon. You’ll be better prepared for the next one.

What’s also amazing about hackathons is that for whatever reason, even if there is loud music playing and people chatting, everyone tends to get a lot done. One friend showed me his RescueTime log after HackTech, which calculated his productivity to be about 90% over a span of 16+ hours. Sure enough, when I opened up RescueTime on my computer, it said that I was being about 92% productive.

If you haven’t been to a hackathon yet, it’s definitely not too late. I might sound a little sappy when I say this, but a certain, unspoken camraderie is fostered among attendees through late nights, tired fingers and eyes, debugging frustration and not ever having enough snacks. It’s an irreplaceable experience that you can’t find anywhere else.

Thoughts on today’s food innovation

In 1996, Michel Lescanne, a food-processing engineer, came up with Plumpy’nut, an ingenious peanut-based paste that was meant to treat severe malnutrition. It’s an innovation in food tech and engineering that’s helped countless lives and changed the way nutrition is approached in third world countries.

It was one of the first products of food engineering that I had ever heard of growing up. Since then, I’ve heard of a couple of other inventions including ideas from Aseptia, an up-and-coming food science company that’s already patented tech that “enables the production of shelf-stable fresh food products without using preservation or refrigeration.”

These days, instead of actual food engineering, I’ve been seeing a lot of food innovation — startups revolving around food, which range from “disrupting” takeout or improving catered food. The rise of the foodie culture, where people live, breathe and “document” (aka Instagram) food, has become very prominent in recent years, and it’s becoming apparent that more people are willing to experiment with their tastebuds.

But unless you get paid to eat for a living, not all of us are able to eat great food all of the time, especially if you’re getting bogged down by school or work. A lot of these startups acknowledge this issue because they’ve experienced it themselves, be it in the role of a CEO or even as an extremely busy college student.

If you can’t wait for your food, there are startups that specialize in same-day deliveries. Munchery, for example, is a food startup where meals are prepared by local chefs and delivered the same night. For about $11 to $13, you can get a hearty dinner, and add sides, desserts or drinks if you’d like. But if you’re in the mood for something with a homemade touch, there’s Eatro, which lets you choose which homecooked meals you want, then lets you pick it up from his or her house. If you aren’t too picky, SpoonRocket claims to serve “the most convenient meal ever,” with super speedy delivery and meals that are fresh and healthy. Not to mention, the prices are a bit cheaper at $8 for some sweet potato lasagna or roasted pork chop.

What if you’ve just moved from New York to Wisconsin and suddenly find yourself craving Momofuku Milk Bar’s amazing pies? No, you don’t have to fly back to The Big Apple just for a taste of that famous Crack Pie. If you’re ok with a little waiting and are willing to splurge a bit, you can order from Goldbely, a food startup that is dedicated to taking the very best foods from cities across the nation and making them available for delivery.

There's a reason why they call it Crack Pie... | Photo courtesy of The Huffington Post

There’s a reason why they call it Crack Pie… | Photo courtesy of The Huffington Post

There are also many, many food subscription box services out there, including Skoshbox, a monthly package of Japanese candies and snacks, and even Taster’s Club, for those who are very into bourbon, a group of people who contribute to, what Fortune Magazine calls “the billion-dollar bourbon boom.”

The more popular of these monthly subscription services are Love With Food and Plated. The former, for only $10 a month, sends organic snacks to your door and, for every box that you receive, a meal is donated to a child in the U.S. The latter service sends you recipes along with the ingredients to make them, if you want to try your hand at cooking something yourself.

For healthier options that won’t require you to lift a finger, you can order from Zesty, which delivers from restaurants dedicated to serving low-carb, gluten-free or even paleo dishes, or you can get your favorite smoothie or some organic vegetables from grocery delivery services like Good Eggs, Instacart, or AmazonFresh, Amazon’s very own delivery service.

It’s exciting to see so many companies dedicated to making food even more accessible, more convenient and, of course, more delicious. They’re solving problems like nostalgia-driven cravings and healthy eating, and packaging them in ways that make life a little easier. I’ve tried my share of subscription boxes, and I will say that it’s pretty fun to get a package every month with all sorts of goodies that you don’t expect. Not to mention, most, if not all, of these startups offer promo codes for first time users, which shows that they’re willing to shave off some of their price margin to show that A) they’re worth your time and money and B) to grab the attention of curious, open-minded food lovers.

As great as these startups sound, unfortunately, their services are not always widely-available. For instance, SpoonRocket is only available in the East Bay and San Francisco, Eatro is primarily based in London and Munchery is, again, Bay Area-centric.

And if you haven’t guessed already, these startups are catering a very specific, upper-middle class to upper class demographic, a target audience that doesn’t need to worry about very much aside from what to wear and what to eat. The prices for these dishes and products, including sometimes hefty shipping costs, are not very affordable for the average middle class person.

Nevertheless, these are creative ideas that are all executed very well. We’ll always need food to survive and, even though we might not always need to have our pies shipped from the east coast, changing up our meals every once in a while adds some spice (no pun intended) to our lives. Though it may be cost-effective to live day-to-day on oatmeal, it doesn’t bring us a whole lot of joy (unless you really freakin’ love oatmeal). Tasting a friend’s brother’s wife’s “world-famous” tuna casserole, sharing a meal with a stranger or trying an Ethiopian meal of Gomen Kitfo for the first time connects us on different levels and brings us a little closer.

Whether you find yourself with the same expression of bliss as the person sitting next to you in a restaurant or you’ve brought your girlfriend over for dinner to try your mom’s homemade lasagna, be it for sustenance, entertainment, love or friendships, food is certainly here to stay.

Maybe only sometimes.

Maybe only sometimes.

Update: Just got an invite to City Lunch Club, a catered lunch service which is only available in New York at the moment. If you want to give it try, click here.

Update 2: Found out about a really cool startup called Gobble that designs “dinner kits,” where ingredients are already cut… all you have to do is prepare the meals (which doesn’t usually take more than 10 minutes).

Facebook, WhatsApp and the Third World connection

Another day, another acquisition.

While companies are secretly filing IPOs left and right, there’s one company that will never have to worry about going public — WhatsApp. If you haven’t heard about Facebook’s whopping $19 billion acquisition of the 55-employee mobile app company by now, it’s the latest bit of news that’s making everyone go crazy with the question: Why?

Though there’s a lot of speculation in the air as to why on earth Facebook would pay approximately 10% of its own worth for an app that, yes, many people in the U.S. don’t even use, we can’t be entirely sure what the Palo Alto company is planning on doing with this app.

I didn’t want to add to the thousands of articles and blog posts already on the Internet about the WhatsApp acquistion, but there’s one small observation that I’ve had on my mind that I’ve yet to see in anything I’ve read so far. That observation? The fact that something like this has been in the works for a while now.

In July 2013, The New York Times published For Developing World, a Streamlined Facebook. It’s a fascinating article that talks about how Facebook has been working on its project, Facebook for Every Phone, which is dedicated to getting the social network onto feature phones which are still used in countries like India and Brazil. Because I’m an iPhone user, I haven’t been able to play around with Facebook for Every Phone, but at the time I read this article, I thought it was a pretty cool initiative Facebook was working on. In fact, in May of that year, Facebook was making deals with phone manufacturers like Nokia, offering $99 feature phones that included free Facebook service for carriers like Bharti Airtel. Interestingly enough, just yesterday, Bharti Airtel became the first Indian company to cross 200 million mobile subscribers. Is this just a coincidence that Facebook, nearly a year ago, had teamed up with Bharti Airtel? I think not.

Though I didn’t hear much about Facebook’s interest in Third World countries after that, in October, Facebook picked up Onavo, an acquisition that did get press, but not to the extent that WhatsApp has (not entirely surprising, considering that the WhatsApp acquisition is anywhere from 95 to 190 times pricier). The interesting part about Onavo was that, not only was it one of the Israeli-based companies Zuckerberg was interested in, but also the fact that Onavo helps to reduce mobile data usage, which means that it has the ability to cut down on phone bills. Yet again, another smart move by Facebook that left people a little confused.

This brings us to WhatsApp, which brought about a lot of confusion when the news first broke. After all, who actually uses WhatsApp in America (omg like #tbt)? Some publications have surmised that this move was made in part because Facebook doesn’t have the best track record with mobile applications (other than its official app). Consider the initial reactions to Facebook Home and the non-success of Facebook Paper, Facebook’s newest mobile application. Though these thoughts certainly make sense, looking at WhatsApp’s user data as well as Facebook’s past acquisition, it would also make sense that Facebook is really looking to really take over Third World countries now.

Take a look at these two graphs from App Annie. The first graph is for WhatsApp on iPhone and the second graph is for WhatsApp on Android. I’ve compared India and Brazil, two countries that still use feature phones, as well as the United States to see how the app stacks up among these three countries.

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WhatsApp on iPhone comparing Brazil, India and United States download ranks from February 8 to February 21. Source: http://www.appannie.com.

In this first graph, you can see that the download rank in Brazil and India have both been fairly steady, hovering around one to five in terms of platform rankings. WhatsApp in the United States, on the other hand, only recently climbed to that region, mostly likely in part to all of the press from the acquisition.

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WhatsApp on Android comparing Brazil, India and United States download ranks from February 8 to February 21. Source: http://www.appannie.com.

What’s even more interesting is this second graph for Android, where WhatsApp ranks first in overall, applications and communication for both Brazil and India (United States, not so much). It’s no wonder that Google also wanted in on WhatsApp, but could “only” offer $10 billion.

If you’re still wondering why Facebook forked over $19 billion (though I’ll admit, that’s still a HUGE amount of money), let’s review what we’ve observed: Facebook has been wanting to expand to Third World countries because they’re growing and have so much untapped potential. Countries like Japan, Korea and China are already hooked on LINE, KakaoTalk (possibly filing for an IPO) and WeChat, respectively, but India, for example, has mostly been using WhatsApp, which is popular among multiple countries.

Facebook’s past acquisitions have been mobile-first, with an emphasis on reaching out to Third World countries. WhatsApp is extremely popular among Third World countries since, for just 99 cents, people can engage in cross-platform mobile messaging without having to pay for SMS.

In summary, WhatsApp is a gold mine for Facebook. Though Google would have been happy to have WhatsApp, Facebook needed WhatsApp in order to effectively tap into Third World countries. It’ll be exciting to see how exactly Facebook is planning on implementing WhatsApp. Though I don’t see ads in the future of WhatsApp (WhatsApp is very adamant about having no ads, though only time will tell) at this point, I think Facebook is now looking to see how they can leverage this immense user base potential they have after the acquisition.