The Future of Monetization Will Include More Offers and Bigger Brands

[Editor’s Note: The following is excerpted from Inside Facebook Gold, our membership service tracking Facebook’s business and growth around the world. Learn more about our complete data and analysis offering here.]

“Fundamentally there’s a pent-up demand within games in general, where users want to level up but don’t want to pay for it. This means that things like brand advertising and brand-sponsored initiatives convert extremely well… they allow users to level up without having to pay for it.”

Lisa Marino, Chief Revenue Officer at RockYou, spoke at Inside Social Apps on where social application monetization will see the biggest growth in the coming quarters, and who can stand to benefit most.

While today’s best monetizing social apps and games can expect between 3% and 5% of their total user base to engage in a transaction for virtual currency, most apps are seeing numbers well below.

To flip the figure, that means that 95% to 97% of users in social apps do not transact to obtain virtual currency. And, that’s for the best-performing apps and games. Lisa Marino shares her insight on the formidable odds facing developers and advertisers in the Inside Social Apps panel on performance advertising.

A clip of the highlights from this presentation:

In her full interview, Lisa Marino shares her forward-looking projections on specific areas for improvement and growth in social app monetization in the coming quarters, and how developers and brand advertisers alike can get the most out of the offer wall.

Marino’s full interview covers:

* Why offers still have lots of growth ahead, both for developers and for brand advertisers
* A detailed look characterizing the “next generation of offers,” including direct deals, fraud reduction, better user experience, and new brand opportunities
* How brand advertisers can get involved in the untapped market of social games

This interview, and exclusive Q&A, were conducted backstage at Inside Social Apps 2010. The full video series is available through Inside Facebook Gold.