Wednesday, March 11, 2009

$700 000/month with Social Media, unlikely.

A couple days ago someone at Socialmedia leaked the news that an anonymous developer was making $700,000/month on their network. After sitting on the pot for about two hours [non medically related emergency] I have this to conclude about Socialmedia's deliberate leak. Someone is either lying, proud, or stupid.

If the post is true, then the amount of publishers Socialmedia stands to attract is marginal compared to what they stand to lose, namely, their $700K/mo. earning publisher.

Risking the exposure of their top publisher is not a wise business decision for a number of reasons. First of all, the publisher risks being poached by another ad network offering more gold. Secondly, the publisher might leave on his own volition, being put off by Socialmedia's brazenness.

Another scenario arises if the publisher for some reason forced the leak with Socialmedia - for pride as an example. Then Socialmedia wouldn't have been smart to oblige.

Socialmedia can get spared one of the titles of proud, stupid or lying if the following scenario holds true, that they had made the leak with foreknowledge that the publisher was going to walk indisputably and imminently.

As a publisher and former advertiser on Socialmedia the leak raised a number of red flags. First, in January eCPMs plummeted to around $0.10 for Canadian traffic as an advertiser. Secondly, publishers globally have been running at an eCPM of $0.40 on average since January.

The reality is that various facebook design iterations and changes to app bookmarking have reduced the prominence and emphasis of applications on facebook - for better or for worse. Few apps are getting more traffic than they were 1 year ago and the forums certainly reflect these somber outlooks. [Ex.]

Mark is the founder of Clutterme Inc. and the creator of 22 facebook applications, 7 of which can be considered successful.

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