This is very important to understand, as it will dramatically affect how we structure our revenue model:
**Assuming that ad revenue alone will be the primary source of revenue on a social network is not realistic. Corporate Sponsorship, and some form of products sales or subscriptions is an alternative source of revenue and must be included in the revenue model.
Facebook ad network Lookery hits its billion-impression target; Socialnetworking doomed?Eric Eldon | March 21st, 2008 | 4 Commentslookery032108.pngLookery, a company that sells advertising onFacebook, and more recently also other social networks, and other websites, has been scraping the bottom of the social network advertisingbarrel, and growing fast. Starting at the end of January, it beganguaranteeing Facebook applications and more recently any other web siteor widget a cool $0.125 per thousand ad impressions for any traditionalbanner ad it ran — a trivial amount for so-called cost-per-mille (CPM)ads.Lookery’s plan was to hit one billion impressions by April, then introducedemographic-targeting features that allow for better targeting of users,and for higher CPMs from advertisers trying to reach specific types of users.The plan is ahead of schedule. The company has gone from less than 200million impressions in January to 640 million impressions in February,and last night, it hit the one billion impression mark (and there’s still athird of March left).Of course, the arithmetic says that at a twelve and a half cent CPM, thecompany is making (a minimum of) $125,000 total for its partners — thecompany offers higher CPMs on some applications, and it neitherdiscloses its total revenue figures nor how much it is making from itsads.