There’s been a lot of debate lately over whether branded applications for social networks, created by companies like Buddy Media, are effective.
I interviewed Buddy Media CEO Michael Lazerow at the AlwaysOn conference this month to hear his side of the story. He also presented his case in an article for VentureBeat last week titled: “Why all the bashing of branded apps? Lack of insight.”
Buddy Media saw 138 percent revenue growth last quarter, Lazerow told me, and has a smart performance-based revenue model positioned to do well in the downturn. An average of 150,000 users sign up for each branded application Buddy Media creates, and the company charges $1 for each user. Since it launched 14 months ago, Buddy Media has created 80 branded programs for 50 clients, including heavyweights like Paramount and Anheuser-Busch.
