CEO Craig Sherman on how the social gaming community is growing, and why he’s banking on advertisingDespite the fact that most social networking or gaming sites are making a mint off of virtual goods, Gaia Online, a social gaming company for teens and 20-something-year-olds, expects advertising to become a greater part of its revenue stream. Seven-year-old Gaia, which currently has nine million monthly uniques, and 85% of an audience based in the US and Canada, is generating over $1 million a month in virtual goods sales, said Craig Sherman, who became CEO of Gaia in 2005. Today, virtual goods sales accounts for 2/3rds of the revenue. Over time, Craig expects virtual goods to be 50% of revenue with advertising accounting for the other half. Craig wouldn't disclose the CPMs (cost per thousand impressions), but said Gaia ... [ read more]