UPDATED 04:40 EDT / JULY 23 2013

Investors See a Second Chance for Facebook’s Ecosystem? Feature Phones + Developers

Facebook is set to announce its second quarter financial results this Wednesday and investors may finally have something to look forward to, according to recent data from  Adobe’s research efforts.

A recent Adobe report states that Facebook’s News Feed advertising scheme is paying off, as its desktop click-through rates (CTR) is 14 times greater than its standard right-hand side (RHS) ads while its mobile ads achieved a CTR that’s 28 times better than RHS ads.

Feature phones for the win?

 

The numbers are promising for investors, but Facebook has more good news with the well-timed announcement that  Facebook For Every Phone, a native app for feature phones, now has more than 100 million monthly users around the world.

With Facebook for Every Phone, people in emerging markets can enjoy almost the same features on Facebook apps for smartphones such as News Feed, Messenger and Photos, and first-time users can also create a new account and find Facebook friends.

“This experience is optimized to use less data than other Java apps and mobile sites, making it more affordable to try and use. We also have partnerships with mobile operators around the world to offer free or discounted data access to Facebook For Every Phone,” Facebook stated.

Facebook For Every Phone is powered by technology created by Snaptu, an Israel-based mobile platform that was acquired by the social networking giant in 2011.  In the same year, Snaptu relaunched as Facebook For Every Phone and has grown to what it is today.  It uses the power of Facebook’s own servers to accelerate and optimize the way mobile apps work, making it possible to deliver the same smartphone experience to lower-end devices.

Not everyone can afford to buy a new smartphone, especially when a new one could cost about $500 or more.  Some features phones cost as little as $20, which makes it them an appealing alternative for consumers in emerging markets such as India, Indonesia and the Philippines.

The app works on more than 3,000 different types of feature phones from almost every handset manufacturer that exists today.

A second chance for Facebook’s ecosystem

 

According to a 2013 study conducted by Nielsen, only 56 percent of current cellphone users own a smartphone, leaving the remaining 44 percent for the feature phone market.  Which makes you wonder if app developers shouldn’t be so quick snub feature phones in favor of smartphones.

SiliconANGLE Senior Managing Editor Kristen Nicole points out that in many cases, it is easier and less costly to develop apps for feature phones, which makes Facebook’s most recent achievement something investors could actually be excited about.  Facebook is pushing for mobile dominance and by making its service available for everyone, smartphone or not, it has achieved its goal.  If Facebook can leverage this to the benefit of its developer community, the social network could truly extend its reach in more flexible ways than smartphone apps have so far allowed.

“If Facebook is looking to expand its app [ecosystem] and incorporate other developer interests and initiatives into their own platform then this is going to be a good thing for developers,” Kristen says during her appearance on this morning’s Live NewsDesk Show with Kristin Feledy (video below).  “In many ways, easier to develop for feature phones with a lot less limitations in terms of having to pay attention to what type of device you’re using.

“Now the features of the actual applications is another story, but I really think that considering Facebook’s missed opportunity at the onset of this mobile era that we’re currently in, being able to enable developers for more feature phone outreach could certainly be a good thing for advertisers and for the ecosystem at large,” Kristen stated.

For more of Kristen’s Breaking Analysis, check out the NewsDesk video below:


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