Inside Facebook

New social ad network AdParlor started four months ago with one purpose in mind: to help developers of applications on Facebook and other social networks monetize their apps better. Today, the company has hit an important milestone in its growth: it’s now serving 1 million “quality” impressions daily.

How has AdParlor grown? The platform offers straight-forward demographic targeting capabilities, and allows both developers and advertisers to “tag” their apps and ads.  CEO Hussein Fazal says that this matching technology helps AdParlor deliver click-through rates that are “double the industry standard 0.04%.”

“A lot of bigger advertisers are worried about where their ad will appear – which applications their ad may be associated with,” says Fazal. “Our tagging technique can be used using a loose match or an exact match – meaning that large advertisers can control exactly what type of applications their ad appears on.”

Advertisers can but on a CPM, CPC, or CPA basis. Currently, AdParlor publicly offers $1 CPM and $0.14 CPC to advertisers, and $0.65 CPM and $0.10 CPC to publishers. Five different ad units are available.

So far, while AdParlor is working with several agencies, many of AdParlor’s early advertisers are actually other application developers. While the eCPM rates on CPI/CPA ads have proven to perform well in the short term, it will be important for AdParlor to broaden its advertiser base to keep its eCPM rates up in the long term. Fazal says the company only currently offers CPA advertising to other app developers on the same platform - not to external sites.