Facebook Is On Top Of Its Game

Facebook plan for Messenger monetization will be fruitful in the long run.

Facebook Inc. has come up with various plans for its Messenger platform that were communicated during its annual F8 Developer Conference in San Francisco. The company talked about how it will make use of artificial intelligence for Messenger. The companies talked about numerous strategies that will help them retain and engage users resulting in monetization. The analysts at Deutsche Bank are optimistic about the company’s future prospect and are appalled by the increase in its user base.

The thing that attracted Deutsche Bank a lot during the F8 conference was the company’s demo of the artificial intelligence equipped bots for Messenger. As per the analysts, such features are intriguing for users belonging to the west. Humans are now inclined towards better access to the basic utility services. The bots can be used for numerous purposes like flight check-ins or communicating with businesses with little or no human intervention.

It needs to be noted that Deutsche Bank believes that some apps and websites are actually working on the same phenomenon but the accessibility of Messenger is focused to mobile ecosystem with little need for PCs. The sell side firm initially proclaimed that Messenger monetization ideas are even worse than that of Instagram. However, they are now of a different view altogether.

In the times to come, the social media giant might also render support for cross promotion of bots via the main Facebook News Feed advertisements. The company’s future plans are in correspondence with the revenue projections accumulated to $10 billion from Messenger and WhatsApp.

Another reason why Deutsche Bank is optimistic is the growing user base of Messenger. The tech giant has not revealed about its monthly average users (MAUs) in 2016, but the growth seems to be promising. In 2014, Messenger observed a 50% growth on a year over year basis achieving the 900 million user milestone. The growth has superseded the MAU growth for Instagram and Facebook by 40-50% and 14% on a year over year basis.

Messenger also boasts of a steady rate of user engagement where almost one billion messages are communicate between users and businesses. This means every user does one message each month which denotes a 100% year over year growth. Deutsche Bank also noted about the company’s disclosure at the F8 conference where it has observed all its applications to reach the 2 billion mark denting 54% year over year growth.

The ratio of developers associated with FB is gone up by 40% on a year over year basis resulting in a payout of approximately $9.5 billion. Moreover, they have also come up with Facebook Live video that will improve the performance of the native application which in return will increase the monthly active users of Messenger.

At this point the monetization obtained from Messenger is in its nascent stage and categorized. However, the strong engagement trajectory remains on top of its games in contrast to rivals. As per the sell side firm only Google and Snapchat has the potential to keep pace with Facebook’s growth.