MySpace Begins Charging for Application Promotion

Last week, MySpace opened up their applications for everybody. By adding an “apps” link to the top of the MySpace header, they began driving users to the applications page. The initial applications page used to be a simple directory.

Many developers were complaining because the applications with the most installs were getting the most promotion. As such, MySpace decided to sort applications based on the date they were submitted. Developers then realized a loop-hole to this model in that they could “resubmit” their application and change the date that they had submitted their app for approval. The result was that people were able to increase the promotion of their applications.

Over the past couple days, MySpace launched a new page which includes a “featured” section as pictured to below. For the past 2 days all of the applications in that space are Slide applications. Developers began inquiring with MySpace about why only Slide applications were showing up there. The result? At least one developer I’ve spoken with found out that MySpace is in fact charging for those apps to be “featured.”

So how much does it cost to be featured? My sources have been pitched to at between $50,000 and $100,000 for one week as a featured application on the MySpace applications page. This is the first platform which has actively attempted to generate revenue directly from application developers. Additionally, this could be bad news for companies with application ad networks as MySpace is now directly competing with them.

Not only does this disincentivize Myspace to build viral channels for their platform but it also means there could be trouble for a lot of smaller application developers. Want to get more exposure for your application or build up your user base? You’ll have to pay MySpace if you want to do that in the short-run and will have choose between using MySpace and other ad networks in the space in the long-run.

This is what many people though Facebook would start doing when their platform launched but as of yet, Facebook has not done so. If you’d like to learn more about application advertising campaigns on MySpace, you can read their entire presentation below.

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