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16-yr old launches Vye music-sharing site. Another Napster?
Rex Dixon
Publisher Relations
Lookery
They could also potentially extent the service to get into AdSense kind of model by tracking facebook users across the internet on even small site...
Interesting although not entirely unexpected development.
-Jitendra
If facebook has (a) the richest data set about its users with decent optimization technology and (b) a great salesforce focused on selling ads to this specific demographic, it should be able to drive the highest eCPM on all of its pages (including third party application pages).
If you are a facebook application developer and you decide to use a different ad network, you will probably have less reveneue (a lower eCPM).
Until Facebook can deliver this product/ecpm, it would be pretty sweet if Facebook could offer its guaranteed MSN CPM rates to its third-party developers...
:-)
Facebook has clearly said that app developers get to keep 100% of the ad revenue on their "canvas pages" which are a subset of the overall facebook user interface. Facebook reserves the top, left and bottom areas of the screen for their own UI elements and ads.
The key for developers is that they should rent their ad real estate out rather than sell their applications too early for sub $1.00 per user rates. For those who want the full story on why users are worth from $1 to $10 dollars to developers please see:
http://www.facebook.com/topic.php?uid=239219172...
WRT your comment about Microsoft losing money on their ad deal with Facebook, this makes no sense and you can read about why in the full story on why Facebook is worth $100 billion (i.e., $500 per user x 200 million users in Dec. 2008) which is explained in the post in my Official Altura Ventures and AppFactory Facebook Investment Fund Group:
http://www.facebook.com/topic.php?uid=239219172...
Thanks,
Lee Lorenzen
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