The recent posting of Facebook’s allegedly non-existent advertising rate card provides insight into the company’s monetization strategy.

Some of my doubts about Facebook’s ability to monetize their platform were fueled by recent reports of abysmal performance for bulletin advertising (0.04% click through rate). Facebook users are relatively sophisticated, and they just don’t click on conventional advertisements, or even the Facebook specific bulletins. So how will Facebook generate revenue to justify the lofty valuations being tossed around by the media?

According to the rate card on Valleywag, Facebook offers sponsors heavily branded placement on brand-specific groups (e.g. The Dave Matthews Band Group). They pitch the service as a way for brands to connect with Facebook members and inject some viral potential into their marketing.  The list price for the branded groups is $150,000 for three months. Currently, Facebook has 150 of these groups. If this numbers stays constant, they will be looking at $90 million in annual revenue.

If you add in some premium banner placement, the fixed banner ad deal they are getting from Microsoft, bulletins, and poll revenue, and then we are talking about some very promising numbers. I will be watching closely to see if Facebook can continue to grow their advertising base in proportion to their user growth.

I think Facebook would benefit from delving into the CPA world a little bit more. Myspace must be making a killing with their relatively new ringtones section. They are probably earning at least $10/signup for the ringtone promotion with Jamster. With some creative promotion, Facebook could be the uber super affiliate. For example, Facebook knows when students are graduating, and they know that many students will be moving when they graduate. By presenting targeted offers related to moving to a new location (moving services, insurance, internet service,etc.), Facebook could make a killing. Very few services have as detailed demographic and behavioral data that could be leveraged for innovative monetization.

Facebook ratecard at Valleywag.