TECHCRUNCH
MARK HENDRICKSON
24 APRIL 08
The Facebook developer community is thriving but faces a good deal of uncertainty about its future. That was the general message from a session held at the Web 2.0 Expo today called “The Facebook Platform: Finding Success in the Facebook Economy.”
The session started off with a disagreement over how much money developers are actually making through Facebook. Naval Ravikant from Venturehacks estimated that over $100M would be made in 2008, whereas Joyce Park of Renkoo and Matt Sanchez of VideoEgg predicted revenues as low as $10-35M this year.
All panelists agreed, however, that CPM rates on Facebook are miserably low, perhaps averaging 15 cents. Developers have begun experimenting with other sources of revenue, such as the sale of virtual goods and premium services, but advertising still generates more than 80% of the platform’s revenue.
