Developers See $12 CPMs on Facebook

Last week I had the opportunity to speak with Chris Cunningham of AppsSavvy. AppsSavvy is a company based out of New York which focuses on building monetization opportunities for social application developers and building custom branded experiences for companies. They do this by connecting brands with the application developers that have the proper demographics to match up with the client’s campaign.

They have successfully executed campaigns for movie companies, TBS, Adidas and a number of other large organizations. The company is heavily focused on providing sales support for the developers that don’t have the resources to reach out to brands on their own. I have spoken on a number of panels where I emphasized that the best ROI for application developers will come from reaching out directly to brands rather than relying on the traditional CPM model that most developers are currently relying on.

AppsSavvy is surprisingly the only company which is currently focused on providing branded campaigns for clients. As Chris says during my interview with him, there is currently limitless inventory on Facebook and not all of it is being filled. Companies that are focused on continuously building distribution won’t win in the long run because there are already plenty of distribution channels.

This goes back to the developer dilemma that I spoke about on Wednesday. Chris and the AppsSavvy teaming are helping developers that build valuable applications connect with brands and they have continued to see growth since their company launched. Listen to my podcast with Chris to learn more. I forgot to mention one other thing: Chris and his team are currently seeing average CPMs of $8-$12!