SocialMedia: $8 Million For Social Platforms

June 19th, 2008 by Nick Gonzalez

Note: Check out Social Media Business School: June 25th NY, June 27th London to learn more about building a business on Facebook

Over the past year of the Facebook Platform, over 24,000 applications have been made, 95% of users have installed an application, and over 400,000 people have added the developer application. Key to the success of the platform have been monetization tools that help developers earn a living developing applications.

From this perspective, SocialMedia’s advertising suite has been one of the chief enablers to the growth of the application platforms. Since launching its application monetization suite in late 2007, SocialMedia is proud to announce it has paid out over $8 million to developers on Facebook and OpenSocial through May 2008.

The same monetization technology has helped the company grow its $4 million in financing from CRV and angels such as Marc Andreessen and Jeff Clavier into a profitable business with 25 employees across two offices. The company expects to generate revenues in the double digit millions for fiscal year 2008.

SocialMedia started out as Appsaholic when the Facebook platform launch in 2007. Appsaholic was the first advertising platform on Facebook and allowed developers to grow their applications by purchasing traffic from other applications. While SocialMedia still allows publishers to buy installs on the network, the company has expanded into OpenSocial and other forms of advertising.

SocialMedia supports a spectrum of advertising formats such as video, banner ads, branded sponsorships, and virtual currency.  Advertisers range across large brands promoting applications, movies, and music. Some brands advertising on the network include The Incredible Hulk, Disney, Weezer, BMW, FedEx, Microsoft, and TripAdvisor.

The network has exceeded 1,000 developers and 5,000 applications as reported in March 2008.

Tags: socialmedia.com

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