Starting as an innovative solution for easy video content creation, distribution and sharing, VideoEgg has evolved into a leading provider of rich media ad content delivery. Right now they provide content on more than two dozen leading social network sites, with over 20 million ads served daily. Its network of distribution sites is now one social site richer. VideoEgg has added Facebook to its list of content delivery sites.

With the rapid Facebook expansion taking place, a move such as this was only to be expected. After all, Facebook is a social network inhabited by mostly young, college educated people, who share content while participating in various groups according to interest. As VideoEgg points out “you have huge reach into a young, social online market”.

With more Facebook applications emerging every day, VideoEgg is hoping to arise interest in third party developers to use the VideoEgg content delivery platform and enrich their Facebook applications with an innovative, unobtrusive ad content delivery system (the visitor is not interrupted unless she expresses interest in the ad content by clicking or putting mouse over). There are examples of VideoEgg’s Facebook projects, such as the promotion for the movie Bourne Ultimatum:

Before putting mouse over…

After putting mouse over…

Will the Facebook community be receptive to such ad content? Well, that remains to be seen. Facebook has been and is being used by companies for social network promotion (for example the Wal-Mart campaign), so the VideoEgg move is something that will add to the already existing social network advertising momentum for sure. It will attract even more companies wishing to show their advertising messages on social networks such as Facebook. Although there are something like 30 million Facebook users, VideoEgg delivers ads on a CPM basis. According to Techcrunch, VideoEgg CEO Matt Sanchez said ad packages are selling at above $10 CPM, with a 60/40 split of revenue in favor of application providers. Ads will at some point be demographically targeted, when Facebook makes available the necessary user data.

Some early advertisers are already taking advantage of this, such as Rock You, Inc., whose CTO, Jia Shen said:

“The Eggnetwork ad units work very well with the Facebook platform…  RockYou is excited to partner with VideoEgg and share monetization strategies that tap millions of users who access our applications across Facebook.”

Jia Shen is co-founder of Rock You, Inc., and a leading developer and publisher of Facebook applications and widgets on the web.

In further support of the growing community of Facebook application developers, VideoEgg will be hosting the first ever App-Camp in San Francisco on October 20th and 21st, 2007. The event will offer developers an entertaining relaxed environment for exploring different ways how they can monetize their applications. Marketers and venture capitalists will also attend to delve into the financial stuff for supporting further developement.

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