Facebook Apps Bear Little Fruit
How much money does Facebook Apps make? Not too much, judging by results from VideoEgg, which serves ads to a network of Facebook apps. Earlier in the week, the company trumpeted about its so-called eggnetwork pulling in $1.5 million in ad revenue over the last five months, but that isn't too impressive, especially when you consider that VideoEgg's client list includes some of Facebook's most popular apps like Scrabulous, Flixster and Vampires. In all, the application network contains more than 150 Faceook-specific programs.
If we had some impression data, then we could come up with a rough estimate of VideoEgg's CPM, but the value of a Facebook app user is fairly low--somewhere in the neighborhood of $1.40 each. However, developers should be able to expand their impression base and monetize their applications better now that Facebook apps are allowed to run on third-party sites. In theory, this would also allow them to incorporate more traditional ad formats, he says.
Growth potential aside, $1.5 million over five months for some of Facebook's most popular apps is a long way away from being a lot, especially compared to MySpace's expected $800 million in revenue this year.