Facebook Application Revenue: 5.2 Million Users = Over $1.5M annual revenue
In January, SNAP Interactive, creators of the Facebook application “Are you Interested“, announced earnings of $388,000 USD for the quarter ending December 31st, 2007. For the quarter, the application had a total of 5.2 Million users and 500,000 daily active users. Read more at Mashable.
Also, check out Are You Interested’s Adonomics growth pattern here.
Opinion: In general, this kind of news represents the first wave of public news regarding significant Facebook revenue. We haven’t seen true targeted Social Ads, and when Facebook eventually gets around to making that happen, the revenues for a company with successful applications will increase. This will create a cycle where bigger advertisers realize they need to get involved, and the profits steadily increase. Eventually, a large company will launch an all out social marketing campaign, and assuming it succeeds, the entire market will direct its eyes on social marketing.
Furthermore, with the advanced Metrics that Facebook is developing, advertisers will quickly be able to see how an advertising dollar in Facebook hits all their target demographics and results in a great click-through rate. When they compare this to the ridiculous rates for a full-page ad in their municipal newspaper, we’ll see more and more money devoted to the targeted social advertising space.
