Facebook Apps Not Making Money?

My colleague Pete Spande responds to Adam Ostrow’s post at Mashable on the topic of Facebook applications and sponsorship dollars:

“I think the article misses the point and potential of Facebook apps as a business. There are supposedly 100 million blogs and most don’t make much money – even those with decent traction. Some however, and FM represents many of them, do very well and are seeing revenue growth that now rivals the audience growth they saw in previous years. I see a similar dynamic forming with FB applications. A handful of applications are making significant dollars through advertising, affiliate deals, etc. Others are seeing real promise. Most aren’t, and won’t, make much money ever.”

From the projects I’ve observed firsthand with Facebook apps affiliated with FM (Watercooler, Graffiti Wall and a few others), brands like Wacom, HP and Dell are finding large, high-quality audiences and significant marketing value. We’re only half a year into the era of Facebook applications, but I’m betting that marketers will do what they always do — send their advertising dollars in pursuit of their customers.

  1. # Andrew said: January 29th, 2008 at 6:46 pm

    I just started looking in to actual development of Facebook apps for my site, so this it’s really nice to know that development of an app could provide another worthwhile revenue stream.

    And seriously, contact me about a redesign :)

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