AOL's Platform-A Guarantees Ad Rates For Bebo, Facebook Widgets

AOL's Platform-A Guarantees Ad Rates For Bebo, Facebook

from Silicon Alley Insider by Michael Learmonth

So far, advertising on social networks has been a big disappointment to all involved. But AOL's Platform-A still believes. The advertising arm of AOL (TWX) is offering a guaranteed 40-cent CPM for Bebo and Facebook application developers that off their ad inventory through Advertising.com's WIDGNET ad network. AOL promises to pay that rate for the first three visits for each unique user. (Typical ad network CPMs are closer to the 10-cent range).

Why do it? Well, corporate sibling Bebo--acquired for $850 million in March--certainly needs the dough and Facebook's many app developers can help Advertising.com build out its widget ad network, which it launched earlier this year.

Bebo opened its API to third-party developers earlier this year and AOL says that more than 4,000 apps are available within the service. Bebo also plans to integrate with OpenSocial in the coming month.

Among the app developers already selling inventory through Platform-A include RockYou, Scrabulous and Fotoflexer. AOL's deal is for U.S. visitors only, but the company says it plans to expand the offer to European Bebo and Facebook app developers later this summer.