Facebook has begun tapping a new revenue stream with the introduction of an internal payments system, a move that might help the fast-growing social networking website achieve profitability while being less reliant on advertising. The long-rumoured payments system, which is in its early stages, will allow users to purchase Facebook “credits”, then use those credits to buy virtual goods from the third-party applications that run on the site, or from Facebook itself.
Facebook hopes that by offering a site-wide currency it will encourage more commerce on the website. By serving as the payment provider, it will capture a percentage of every transaction.
“Over time, this will be very significant,” said Ray Valdes, an analyst with Gartner Research. “Social networking sites have suffered with monetising [their services], but this leverages [the fact that] users are there on Facebook.” Valdes said revenue from its payments system could soon represent one-third of Facebook’s income.
Users are increasingly spending real money buying virtual goods and credits on the applications that run on Facebook’s platform. Zynga, the largest applications developer on Facebook, with 42m users of its games, is reported to be nearing annual sales of $100m. Together, developers working on Facebook’s platform are expected to make more than $500m this year – perhaps more than Facebook itself.
via The Peninsula On-line: Qatar’s leading English Daily.
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Engage Expo March 10-11 2009 http://www.engageexpo.com/
Engage! Expo (formerly the Virtual Worlds Conference) is the event for youth and young adult brands, media and agencies to meet and learn how to combine their existing online efforts with the unparalleled engagement opportunities and new revenue streams of the 2D and 3D Web and Virtual Worlds. Now in our third year we invite you to sign up to receive our email updates.
Subjects covered at Engage! include kids worlds, toys, social media, games, virtual goods (micro-transactions), tween and teen-oriented virtual worlds, 3D Web advertising and licensing strategies.
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TRACKS: Engaging Kids | Engaging Youth | Virtual Goods and Gifts
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Tucker Aaron, Lead Strategist, Animax Entertainment
Larry Andreini, ZEO, RIDEMAKERZ
Jan Andresen, CEO, Weblin
Pano Anthos, President and CEO, Hangout Industries
Maria T. Bailey, CEO, BSM Media
Chris Bergstresser, Co-founder and CEO, Webcarzz, Inc.
Lauren Bigelow, General Manager and SVP Marketing, WeeWorld Inc.
Dr. James M. Bower Ph.D., Founder, Chairman, and CVO, Numedeon Inc.
Yuanzhe (Michael) Cai
Timothy Chang, Principal, Norwest Venture Partners
Ro Choy, Vice President of Business Development, RockYou
Lee Clancy Jr., VP of Product Management & General Manager of Direct Revenue, IMVU
Jorian Clarke, CEO, Circle 1 Network
Jesse Cleverly, connective media
Benjamin T. Duranske, Attorney, Pillsbury
Jared Freedman, President, Code4Software LLC
Barry Gilbert, VP & Research Director, Strategy Analytics
Richard Gottlieb, President, Richard Gottlieb & Associates, LLC
Neil Harris, Executive Vice President, Simutronics
Julie Hochheiser, Senior Web Editor, Seventeen.com
Steven Hoffman, CEO, RocketOn, Inc.
Charles Edward Hudson, VP of Business Development, Serious Business
Teemu Huuhtanen, President, North America & EVP Habbo Business, Sulake Corporation Ltd.
John Hwang, Director of Products, Automotive, RockYou
Nabeel Hyatt, Founder and CEO, Conduit Labs
Joe Hyrkin, Vice President, Sales & Business Development, Gaia Online
Dan Jansen, CEO and Co-Founder, Virtual Greats
Sean Kane, Attorney, Drakeford & Kane LLC
Marta Kagan, Vice President of Marketing, Viximo
Jouni Keranen, President, iLemon
Thom Kidrin, President/CEO, Worlds.com Inc.
Daniel Kruchkow, Head of Digital Strategy, Crush Management
Dr. Andreas Lober, Partner, SchulteRiesenkampff
Kenneth Locker, SVP Digital Media, Cookie Jar Entertainment
David Lord, President, CEO of Knowledge Adventure
Sean McGowan, Managing Director, Equity Research Department, Needham & Company
Ravi Mehta, Vice President of Publishing, Viximo
Nic Mitham, CEO, K Zero
Philippe Moitroux, CEO, TAATU
Sergio Monsalve, Principal, Norwest Venture Partners
Dell Monson, Vice President of Marketing, Hidden City Games
Izzy Neis, Sr. Community Manager, Six Degrees Games, Inc.
John L. Nicholson, Senior Associate, Pillsbury’s Global Sourcing
Jason Oberfest, Vice President of Business Development, MySpace
Jerry Paffendorf, Co-Founder, Wello Horld
Matt Palmer, Executive Vice President and General Manager, Stardoll
David Perry, Chief Creative Officer, Acclaim
Laurie Petersen, General Manager, Minyanville Family Media Inc.
Michael H. Pinkerton, COO, Metaverse Mod Squad
Joi Podgomy, VP, Interactive Development, Ludorum
Ken Ruck, VP of Global Digital, HIT Entertainment
Sean Ryan, CEO, Meez
Sabri Sansoy, Chief Technology Officer, Animax Entertainment
Sally Schmidt, Executive Producer, Circle 1 Network
Andrew Schneider, Co-Founder and President, Live Gamer
Joey Seiler, Editor, VirtualWorldsNews.com, Virtual Worlds Weekly
Christopher V. Sherman, Executive Director, Founder, Virtual Worlds Management
Anu Shukla, CEO, Offerpal Media
Adrian Si, Interactive Marketing Mgr, Scion
Ted Sorom, CEO, Rixty, Inc.
Reuben Steiger, CEO and Founder, Millions of Us
Sibley Verbeck, CEO, The Electric Sheep Company
Margaret Wallace, CEO, Rebel Monkey
Regine Weiner, Service Game Director, NR2B Research, Inc.
Jeff Weiser, Head of Analytics, SGN (Social Gaming Network)
Dan Yue, CEO, YouPlus
Jeremy Zorn, Vice President of Product Development, myYearbook
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Engage Expo March 10-11 2009 http://www.engageexpo.com/