Further to the theme of distributed brands ("fishing where the fish are") in the interactive space, PDX's Danny Sheniak dug up a nice piece by AdWeek's Brian Morrisey entitled "Facebook Spawns Ad Networks".
The gist of the piece is that Facebook's opening up their development platform has spawned an industry whose monetization potential, and data mining capabilities, are just not unfolding. For anyone not on facebook, these applications, or "apps", most often take the form of custom modules that users can add to their page. Users are effectively ceding their personal page real estate for these applications, and often choose to allow these applications access to their personal info to "customize the experience". Morrisey got Troy Youngof VideoEgg on the record:
"If you were to break the Web down into phases, the first was a
top-down directory approach like Yahoo!, the second was Google's
natural language search and the third is organizing the Web around the
profile," said Troy Young, chief marketing officer at Videoegg.
Net, companies used to try to find you. Now you can choose to invite them in. Like vampires that can't enter your home without you inviting them in.
Mini-programs (2,800+ at last count) like "Where have I been", "Ninjas vs. Pirates", and "Zombie" are built to be shared, forwarded and discussed. Most apps allows you to download them with a single click to your own page after seeing it on a friend's. Applications users groove to can get enormous distribution quickly.
The trick for brands considering this channel is not developing an app at this point - it's getting it distributed.
Lance Tokuda, RockYou CEO, notes "there are a lot of billion dollar corporations that only have 1,000 users" of their Facebook applications, he said.
Why? Two reasons - first and foremost, you need a compelling value proposition (ask yourself: why the hell does someone want your app on their page? if you can't answer beyond "its a chance to connect with my brand", you're screwed). Second, the directory on Facebook that lists all the available applications force ranks them based on their popularity - as determined by downloads. Which means big ones get bigger, and new ones have to come up with clever ways to crack the top 10, or come up with novel ways to monetize their presence.
Enter the networks. Morrisey cites two, in particular:
- Videoegg's Facebook ad network runs video banner ads on the landing pages "for over half of the top 10 most popular applications". When users launch the application, they get a page with a VideoEgg-served ad. The ads are getting $10 CPMs, and Videoegg is taking 40 percent of the revenue generated by the ads
- Widget maker RockYou has started an ad network around SuperWall, which lets users put multimedia messages on friends' profiles. RockYou's network will "offer consumers downloading its programs selections from others that haven't gained momentum", and RockYou intends to charge the developers of those apps a fee per download, and "might at some point even create applications for brands".
Look for many brands to step into cow flops and dog doodie attempting to get into this space. But look for smart ones to figure out new ways to make real connections - and potentially leverage existing social networks to build their own social platforms!