Eric Eldon is reporting that SocialMedia, one of the leading ad networks on Facebook, has raised $3.5 million in a series A round let by Charles River Ventures and a number of angel investors. SocialMedia has a number of popular applications on Facebook that have been highly criticized for being “spammy” including: Food Fight, Trakzor and Happy Hour. While SocialMedia may have less sustainable applications currently, they are rapidly launching revenue models that appear to be more sustainable.

Earlier this month, I wrote about how SocialMedia is launching a targeted ad service. The targeted ads are based on the interests that individuals specify in surveys on the site. These surveys can be used to earn virtual currency via their datapoints program. According to the Social Media press release, “SocialMedia Networks series A financing came out of an initial investment through the Charles River Ventures QuickStart program, a seed funding program that allowed SocialMedia Networks to prototype its idea and test the market potential prior to series A financing.”

Based on this, it appears as though SocialMedia is profitable enough to garner further investments. That’s not to say that all of the applications monetizing their applications through SocialMedia are making a significant amount. As I highlighted in my previous article, many of the applications are not very lucrative. According to data provided by SocialMedia, the Happy Hour application is earning just over $100,000 a year. Not bad for an entertainment application but nothing spectacular. It will be interesting to see what new services SocialMedia begins to launch with their new round of funding.