Can Facebook Applications Make Money?

Posted by Nick O'Neill on October 4th, 2007 7:57 AM

According to a New York Times article this morning, future cash flows may be questionable. The article compares the current ad reveneue being generated as similar to the gold rush when miners sold shovels to other miners. Michael Lazerow, CEO of Buddy Media (the company we broke the news about raising $1.5 million for Acebucks), was featured in the article as stating that “the pattern of Facebook applications relying on advertising from other Facebook applications is unsustainable.”

I couldn’t agree more and Michael Lazerow hits the nail on the head when he says that companies will be willing to advertise when they are able to reach the exact people that they want to reach. Even still, the New York Times article points out that even other Facebook developers are hesitant about the money that can be earned via Facebook applications. Only time will tell whether or not any of these applications are a sustainable business model. In the meantime, developers and entrepreneurs should enjoy the ride!

This entry was posted on Thursday, October 4th, 2007 at 7:57 am and is filed under Analysis, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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Chris Vincent 10 months ago 1 point
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I wholeheartedly agree. On top of that, what app developer wants other apps competing for the time of his/her engaged users being advertised on his/her app? Frankly, I am hoping that Facebook is developing an official ad network with broader reach than just other Facebook apps, not to mention better targeting.

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