The document summarizes an upcoming open auction for Facebook apps called Zuckerbid. It discusses what qualifies as a Facebook app and provides examples of successful apps like Zynga, BranchOut, and SocialCam. The release of the Facebook App Center and new monetization options are increasing the value of Facebook apps by providing better distribution and payment systems. Zuckerbid will give developers an exit strategy to sell their valuable Facebook apps.

1. The Open Auction for Facebook Apps

2. How Does Zuckerbid Work?
5 Days 12 Hours 35 Minutes
Developer App Buyer
Zuckerbid is an open auction where
developers can list their Facebook apps for sale.

3. What’s Considered a “Facebook App”
A Definition

4. What’s Considered a Facebook App?
Our Test:
If Facebook died tomorrow, would your app still work?
If your app would also die, or at least be mortally wounded, it’s
probably a Facebook app.

5. Facebook’s Definition
Facebook lists 3 types of apps that are eligible to be listed in the app center:
1) It works on Facebook.com in a canvas page
2) It’s a native mobile app built for iOS or Android but uses
Single Sign On (SSO)
3) It’s a mobile web app or website that uses Facebook Login
and has an immediately personalized logged-in experience

6. Canvas Apps
1) Works on Facebook.com in a canvas page
• Never have to leave
Facebook.com to
use the app.
• App loads on a
“canvas” area
designated within
Facebook through
an iframe.
• A Popular choice for
games

7. iOS/Android Platforms
2) A native mobile app built for iOS or Android but uses Single
Sign On (SSO)
• The app is built
native to iOS or
Android platforms
• New users sign
up/login using their
Facebook identity
• Single Sign On (SSO)
gives the app access
to the user’s
Facebook profile
information and the
social graph

8. iOS/Android Platforms
3) A mobile web app or website that uses Facebook Login and
has an immediately personalized logged-in experience
• Mobile web apps
that are built with
responsive design
and mobile-friendly
markup like HTML5
• Websites that use
FB login and have an
experience built
around the
Facebook
integration

9. What’s The Big Deal With
Facebook Apps?
An Explosive Market

10. Y U THINK FACEBOOK
APPS SUCH A BIG DEAL?!?
• As of April 2012, there are over 9
million Facebook apps
• Collectively, they generate
$BILLIONS for developers each year
• There is no way for these
developers to sell their app like a
business
• Zuckerbid gives developers an exit
strategy for their Facebook apps

11. Signs of a Market That’s Heating Up
There is a growing number of startups that have
used the Facebook platform to achieve
astonishing results for their app in record time.
They are like tremors before the earthquake…

12. Tremor: Zynga
• Social gaming company built on Facebook’s
open graph
• Grew to over 2,000 employees within 4 years
of its inception
• $1.16B of revenue in 2011
• Acquired 14 other companies to date and has
expanded operations internationally
• Has given over $6mm to charitable causes
Within 4 years, Zynga started booking revenue in the
billions. They account for over 15% of Facebook’s total
revenue.

13. Tremor: BranchOut
• Attracted 30 million users in less than
two years
• Raised $50mm in venture capital
• Full-time staff of 45 and growing
• Multiple non-advertising dependent
revenue streams, including a unique
tool for recruiters
With astronomical growth, three rounds of
funding, and alliances with players like
CareerBuilder, BranchOut shows promise for
entrepreneurs seeking to build a legitimate
business on the Facebook platform.

14. Tremor: SocialCam
• Sought to become the “Instagram for
video”
• 20 million monthly active users within
the first year
• Acquired by Autodesk for $60mm within
18 months of its launch
Socialcam demonstrates the potential for accelerated growth
by leveraging the power of viral user acquisition on the
Facebook platform.

15. What is the lesson here?
Facebook apps are not just annoying games
that waste time; they are growing into
legitimate, value-producing businesses.

16. Recent Events That Have Raised
The Stakes
Increasing App Value

17. Recent Events That Raised The Stakes
• May 2012: Facebook App Center was released
• June 2012: Facebook Announces they’ll phase
out their credit system and replace it with credit
card billing for in-app purchases
• July 2012: Facebook introduces new
monetization opportunities for developers,
including subscription payments.

18. The Facebook App Center
In May 2012, Facebook started the App Center.
Developers rejoiced. It was like the Zuckerclaus
dumped out pirate chests full of new app users.

19. The Facebook App Center
Q: Why is the App Center such a big deal?
A: It’s a massive free distribution channel that can
catapult apps to success overnight.
• Users browse by category, making apps easier to find.
• Users get customized recommendations for apps
based on their friends’ activity.
• Rapidly growing apps are listed in the “trending”
category—AKA free exposure to millions of eyeballs.
• In the first month, has generated 240% more app
installs for developers.

20. The Facebook App Center
One more little nugget about the App Center:
The App Center will likely attract
talented developers who need a
distribution channel for their
HTML5 mobile apps, since they
are not eligible for the Apple or
Android stores.

21. New Monetization Options
In the summer of 2012, Facebook
announced 3 new payment features:
1) Developers will be able to sell premium apps, like in
the Apple app store
2) No more in-app purchases using Facebook credits.
Users will make payments using a credit card in their
own currency
3) Developers will be able to sell subscriptions to their
apps. This is perfect for premium content publishers

22. Let’s Review
• The Facebook app is a proven business model,
which has gained interest from top venture
capital firms.
• It’s easier than ever to accelerate user growth
through free distribution channels like the app
center.
• Developers can get paid for virtual goods or
charge subscriptions in every major world
currency.

23. The Open Auction for Facebook Apps
Beta Release in Fall 2012