Tuesday, February 17, 2009
Q&A with Offerpal Media CEO Anu Shukla: Monetizing Social Network Apps
Offerpal Media just announced $15 million in Stage D.E. Shaw Ventures, InterWest Partners and North Bridge Venture Partners.
Shukla is the former CEO of Rubric, which she sold in 2000 for nearly $400M. Offerpal has about 55 employees and a range of 30-40 million in revenue. Shukla saw the great potential in games and applications for social networks, and she realized that many developers weren't getting the compensation they deserved for their creative efforts.
We looked at social networking and realized people aren't looking at banner activities. People are engaged in activity and you need to be involved in that activity. What we've done is focused on our platform from service aspects. quality advanced technology advertiser wanted, the publisher is making amount of revenue and consumer the is getting something they want anyway, so everybody wins.We're making social networks and open web platforms profitable.
How did Offerpal find a viable solution to appease the advertiser, consumer and developer?: Action-Based Offers.
I asked Shukla to explain how an action based offer works.
In a game like Texas Hold Em Poker, you can earn chips with real currency or virtual. In our iframe page that pops up, we know who you are here are some things you'd like to do if you subscribe to Blockbuster you get $100 worth of chips. We find consumers w/ith money and time. If I'm in interested in Blockbuster or Netflix, I'm also going to get a $100 in virtual currency.The advertiser is acquiring consumers that they know a lot about and they only pay for performance
Offerpal only uses nationally recognized corporations for its advertisements, so customers don't worry about providing credit info. Offerpal lunched its app platform in October of 07, and now supports all the major social networks, including Facebook and Myspace. Clients include 800 publishers on casual gaming sites, 2,000 advertisers, with 2.5 million transactions per month and 50 million consumers with access.Of the 600 social networking apps, which range from mob games, to go green apps and dating apps, the median app is collecting $150,000+ a month in revenues.
These applications can make a lot of money on social networks,some of the big players are seriously looking at taking their popular games and RPGs and launching them on social networks.
By Matt O'Hern at 11:46 AM | Comments (2)