How Does Yfrog Make Money?

Ryan Seacrest on Yfrog

Photo: Advertisers like to get next to American Idol host Ryan Seacrest’s photo uploads

Yfrog is the the second-most popular way for Twitter users to upload and photos after TwitPic. (It’s ahead of TweetPhoto.) We estimate the company has annual revenues hovering around $10 million.How? Don’t brand advertisers usually avoid random-seeming user-generated content?

They do, but Yfrog gets around this problem because it makes most of its money selling ads against photos uploaded by it’s most popular users – typically celebrities along the lines of teen idol Joe Jonas, Neil Patrick Harris, and Ryan Seacrest.

Yfrog boss Jack Levin explains:

“If you look at the hundred users on Twitter that have most followers, they have a lot of followers. And usually they are very very famous. They could be sports superstars, movie stars, whatever. If a person like this posts a picture and a lot of their fans come to look at it, those fans are in a very specific demographic. Nike may want to advertise next to Tiger Woods. People who have special interests come in masses to our sites. It’s not the same as a bunch of noise.”

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