Some Structure

Facebook applications are sprouting up like weeds and we knew it was just a matter of time before someone would realize the potential benefits of organizing the chaos. As is always the case in business, several people have realized it all at once.

Lookery and Social Media are two examples of companies providing a solution. They essentially sit in between Facebook developers and hungry advertisers to offer compelling advertising products for both parties. Most developers are too busy to develop their own campaigns, and it’s difficult to persuade advertisers or ad networks to provide serious programs since the space is virtually untested.

J-Squared met with David Henderson of Socialmedia earlier this week, and David explained how organizing apps into partner networks creates an arsenal of publisher real-estate that’s much harder for advertisers to refuse. He hopes to partner with some of the best applications, creating leverage to more easily bring these advertisers to the canvas page. Innovative advertising techniques will drive up the average CPM rate, he says.

We haven’t yet met with Lookery, but we hope to gain more insight into their service in the coming weeks. As the space develops, other players will undoubtedly surface. J-Squared is looking forward to seeing what these guys can cook up.

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One response to “Some Structure

  1. We’re looking forward to talking. Where we differ from SocialMedia (as far as I can tell) is that we’re building the ability to sell demographic slices across applications to advertisers (e.g. women 24 to 34 in Nevada). We do sell per-application as well, but it’s not the focus for us that it is for SocialMedia.

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