socialmedian: Offers controversy stirs reactions across social networking industry

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Offers controversy stirs reactions across social networking industry

Source: VentureBeat

Nov 03, 2009

Summary

A relatively obscure part of the social networking business has come into the limelight. It’s about special ads known as “offers” which are used to monetize free social games. These offers are like the ads that promise you a discount on your Amazon.com purchases if you sign up for a free credit card.

They’ve gained in importance because they’re a way that users can enjoy advanced features of the apps or games which normally cost money — without shelling out cash. You can pay for an extra weapon in a game with a credit card, or you can participate in an offer without paying.

But Techcrunch editor Michael Arrington has raised a firestorm over “scam offers” in social games that appear to deceive users. He contends that the offer industry players such as Offerpal Media, the game companies such as Zynga, and platform owners such as Facebook are part of a “social gaming ecosystem of hell” because they ride on this foundation of scam offers.

But Offerpal chief executive Anu Shukla, who in a debate with Arrington called his allegations “shit, double shit and bullshit,”

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