Large Facebook Application Developers Now Outsourcing Their Facebook Ad Buys

Facebook’s largest advertiser is Zynga, the insanely popular social gaming developer behind uber hit: FarmVille. Other application developers have also followed suit and are using Facebook’s advertising platform as a way to drive new installs. Rather than building in house advertising solutions which integrate with Facebook’s API though, many application developers are now turning to third parties with custom ad management solutions.

For example ONE Media Manager announced today that Zoosk, the popular Facebook dating application, had become their first client. We’ve also heard rumblings about other large application developers turning to some of the third-parties we previously wrote about who provide Facebook ad management software (77Agency, Alchemy, etc). While Zynga spends upwards of $72 million a year on Facebook ads according to rumors, most application developers spend a fraction of that, which means investing in an internal ad management software probably doesn’t make much sense.

If application developers made up the majority of Facebook’s ad revenue, it would be somewhat concerning as it ends up being a somewhat circular process. However large brands are spending big dollars on Facebook engagement ads and small businesses are increasing their spending on Facebook advertising. Facebook should hope that both of these revenue sources, in conjunction with new revenue models (like Facebook Credits), will eventually offset the less sustainable revenue gained through Facebook application install ad spends.

For the time being though, I’m sure Facebook doesn’t mind big developers spending millions of dollars with them!