Social networks are difficult platforms for developers to make a profit, but that may change thanks to a new program from AOL.
The company announced Monday that it will guarantee CPM revenue to developers who use AOL's Platform-A technology for their Facebook and Bebo applications. Essentially, when a widget pulls in three unique ad impressions, AOL pays the developer a flat fee, according to CNET. The new program is part of Widgnet, a developer-focused branch of Advertising.com.
"Platform-A views social-networking applications as an area where we can add significant value by letting developers focus on expanding their install base, without worrying about monetization of applications," Dave Jacobs, Platform-A's SVP of publisher services, said in a release.
Developers shouldn't be counting their money quite yet, though. According to Mashable, AOL will only pay the flat rate for the first three U.S. ad impressions, and all other impressions could be paid at lower rates. The rates are still undisclosed.
However, the move could be a coup for AOL, which has a larger reach than other ad networks and has the distinct benefit of owning Bebo, one of the social networks included in the program. The announcement could also be a boost for Platform-A, which has had to adjust to several growing pains to get up to speed.
