Facebook: “selling fans between $4 and $10” to Brands and others

The Facebook economy—built on allowing marketers to harness what’s called the “social graph”–is big business (and will grow as consumers also buy more virtual goods).  AllFacebook reports that:

“When the Facebook platform launched two and a half years ago a massive cost per install economy sprouted up. Whether it was individual developers looking for more users or large brands looking to expand the user base of their branded applications, money was flowing…There are entire ad networks still supported by the cost per install economy…So how much do fans sell for? There’s a wide range but I’ve heard Facebook is selling fans between $4 and $10. That adds up to substantial revenue for Facebook. For example, let’s assume that the top 100 advertisers each want to purchase 100,000 fans. Theoretically Facebook could generate $100 million just from the top 100 advertisers. As you move down the long tail the numbers begin to add up quickly.”

source:  If Brands Want Fans, Facebook Will Sell Them Fans.  Nick O’Neill.  AllFacebook.  Oct. 20, 2009.

Author: jeff

Jeff Chester is executive director of the Center for Digital Democracy. A former journalist and filmmaker, Jeff's book on U.S. electronic media politics, entitled "Digital Destiny: New Media and the Future of Democracy" was published by The New Press in January 2007. He is now working on a new book about interactive advertising and the public interest.

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