Yahoo Lands Bebo Advertising Deal

Good news for Yahoo, which until now didn’t have an advertising deal with any of the big social networks. They just announced that they will handle advertising for the UK and Ireland sites of Bebo, one of the large social networks (articles here and here).

The deal will see Yahoo selling the majority of display and video advertising to an audience of 11.6 million members. Yahoo was previously rumored to be in talks to acquire Bebo for $1 billion in May.

This at least gets them in the game. Last year Google snatched up Myspace advertising with a nearly $1 billion deal. Facebook went with Microsoft, and then Friendster announced a multi year deal with Google earlier this year.

The terms of the deal were not disclosed. Google guaranteed revenues to Fox, MySpace’s parent company, pursuant to their deal. And Microsoft was largely rumored to have done the same to win Facebook’s business.

More coverage at TechCrunch UK

Facebook Apps Are Pointless If They Don’t Work

Surj Patel is discussing an important issue about Facebook applications over at The Future of Software.

Facebook applications deal with the same, if not greater, scalability issues as regular websites. As usage of any online service grows, developers must provide enough storage and computational power to keep up with the demand. Otherwise, pages take forever to load, error messages begin popping up, and frustrated users vow to never use your product again.

Scalability problems have plagued Facebook’s developer platform from the start. I can’t tell you how many times I have tried to test a Facebook app only to wait impatiently and finally succumb to screens like the one below:

There seem to be two primary reasons why Facebook apps have a particularly bad time with scalability. First, Facebook’s news feed serves as a powerful distribution network that can cause applications to spread virally between friends at a rapid pace. The hockey stick can come very quickly and very unexpectedly for Facebook developers. As a consequence, many of them are caught off-guard and left dealing with victims of their own success.

While I don’t have any statistics on how many Facebook developers are amateur rather than professional, it also seems as though many casual programmers produce Facebook apps that they never seriously intend to scale successfully. The Facebook development environment is such that a skilled programmer can build an attractive application within a very short time. Such casual programming sets these applications up for failure when they receive serious attention by users. Unfortunately, many users (including myself) are left with a bad impression of Facebook apps in general when casually-built apps fail them.

So what is to be done? Patel mentions Amazon’s EC2 and S3 services as good processing and storage solutions for developers who need extra resources on demand and perhaps cannot afford to pay for excessively-sized hosted or in-house scaling solutions. He also names WeoCeo and RightScale as other “meta services” that make it easier for developers to hook up their applications to resource providers.

And yet, it seems unnecessarily inefficient to me that developers have to work with both Facebook and a 3rd-party meta service to deploy successful applications. I’d like to see Facebook itself step in and fill this need for developers so they don’t have to scrounge around for extra computational and storage capacity (after all, there is a waiting list for Amazon’s services now).

If Facebook were able to ensure the success of applications on its platform by providing all the requisite resources for a marginal fee, we would have a win-win situation on our hands. Developers could sleep more easily and so would the execs over at Facebook, because the company wouldn’t have to worry about slow 3rd-party applications tarnishing the brand and overall social networking experience. The service might also provide a healthy revenue stream for the company.

Such a move would take the idea of a platform to another level and demonstrate to potential developers that they really do care about the success of applications within its garden.

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Revver: $1 Million In User Payouts In First 12 Months

Social video site Revver has paid $1 million to video producers and their affiliates over the past year, the company says (pdf). Today also marks the service’s one-year anniversary. Revver generates revenue from pre and post roll advertisements that play in video content in their embeddable player.

Revver splits revenue 50/50 with video creators after paying 20% off the top for video distributors (sites that embed the video become distributors). This implies total revenue of $2-2.5 million in the last year depending on if there are distributors to be paid. Of course, if they have sweatheart deals with some content providers, that revenue total could be lower, even significantly lower.

Revver was one of the first and currently is one of the few hosted video sites helping monetize social video for independent publishers. Metacafe currently has a producer rewards program where they pay $100 per 20,000 views. Dailymotion and Youtube are expected to pay their users through advertising revenue as well.

Google To Present At TechCrunch40

We just got permission to post this - On top of everything else we’ve got planned, Google will present something at TechCrunch40 next week. Like the AOL and Yahoo product launches, it will not be eligible for the $50,000 top prize awarded to the best new startup product. But they will present it in front of the main crowd, and audience comments and questions will be part of the show.

Odeo (Formerly SonicMountain) Acquires FireAnt

If you know who FireAnt is, you either love podcasts or you’re a long time reader of this blog. The company built up a cult following in 2005 and 2006 as the podcast directory and player, and competed head on with Evan Williams’ Odeo for mindshare and users.

FireAnt’s assets were acquired by Odeo for $400,000, they companies will announce today. Not the old Odeo, but Sonic Mountain, which renamed itself Odeo after acquiring it earlier this year. For less than $2 million, Sonic Mountain has now put two of the more well know podcasting brands together under one roof.

The acquired assets include FireAnt’s technology, particularly their desktop media player for Windows and Mac, as well as FireAnt’s database of feeds and metadata. Founder Josh Kinberg joins Odeo to lead product development and integration of the Odeo and FireAnt technology.

Everything will be branded Odeo from here on out, so take a good look at that screenshot. If you are a FireAnt user, it will be changing significantly soon.

Diigo to Launch Website Slideshow Feature Next Week

Website annotation tool Diigo will officially announce its new WebSlides feature next week.

The new widget is an embeddable player that presents feeds or bookmarks as live web pages in an interactive slideshow format, complete with full page content including links, comments, and ads. The widget can be sent to friends and colleagues or placed on websites, blogs, and social networks. A bit of good news for publishers: every slide view will actually register a page view for the content owner.

WebSlides also enables Diigo users to highlight important sections and annotate pages on the fly with sticky notes. Users can also bookmark, tag, share, and clip content from the pages in WebSlides for future reference in their own Diigo online folders.

To set up a WebSlides presentation, you simply enter a feed or list of bookmarks, add background music or voice narration, and click “Play”.

There is a lot of competition in the website annotation space, but Diigo’s WebSlides is the first slideshow widget to preserve total page content. Combined with Diigo’s research capabilities, WebSlides makes for a great product. The company will be presenting in the TechCrunch40 demo pit next week.

Our previous coverage of Diigo is here.

Firefox Isn’t Bloated, DRM Will Die: Mozilla Europe CEO

TechCrunch UK’s Michael Butcher has an exclusive interview up with Mozilla Europe CEO Tristan Nitot that covers Firefox, DRM and Microsoft.

Nitot certainly doesn’t appear to be shy in his views on a number of topics. On DRM:

“I don’t think DRM has a future. Treating your customers like thieves is bad business practice. Today the customer is not ‘king’, they are considered thief first….It is stupid to think that the key to a DRM system won’t leak. So if it becomes more painful for a legitimate customer to use a product than it is for the pirates then that’s a problem.”

Nitot also states that Firefox isn’t becoming bloated: “No, Firefox is getting speedier and speedier;” whilst he is correct that Mozilla has held back from adding lots of extra features into Firefox, I’m surprised that he is claiming Firefox is getting speedier…perhaps it is, in between its memory leaks and intermittent crashes.

Full interview here.