Tim O'Shaughnessy, CEO of LivingSocial, recently made a statement that might not be very surprising to most of us but it sure is contemplating.
He said, "It wouldn't surprise me if apps on Facebook generate more revenue this year than Facebook" and when a CEO of the company with the biggest app on the platform says this, it does signify a meaning.
Applications on Facebook are thriving most around the revenue models of virtual currency, ad-network inventory and branded sponsorships.
Due to these three models, not just the apps but the whole Facebook payment eco-system as a whole is growing rapidly.
Rock You's ballpark earnings for 2009 are $300 million, which are mainly streamed from these three models while Zynga has crossed a $100 million sales mark this year.
Seems like social gaming companies are really thriving! Analogous to $500 million made by media app developers combine, Facebook is expected to make $500 million in revenue in 2009.
According to the Ad Age estimates, Facebook developers are turning in between $300 to $500 million.
Even if its $300 million, it's a big number.
Facebook makes most of its revenue from advertising while according to Lisa Marino from Rock You, it is not utilizing any of the three successful models of virtual currency, ad-network inventory and branding sponsorships.
Well, Facebook is into its own infrastructure troubles which might be impeding in its adoption of newer revenue models but as the latest news says, it is coming up with its own virtual currency; the signs of Facebook expansion are eminent.
Facebook applications are doing advantageously well but I beg to differ that they'll be more successful then the platform itself.
Facebook is huge and as it grows it'll bolster the media apps!