Social gaming powerhouse Zynga has built a business potentially worth
north of a billion dollars. And it doesn't sell anything. Real, that
By some estimates, the company will reportedly pulls in over half a billion dollars in revenue this year selling virtual goods, such as virtual tractors and furniture, that
are used in social games that are played by hundreds of millions of people
each month on social networks like Facebook.
Social networking giant Facebook is reportedly going to pull in approximately half a billion dollars this year in advertising revenue. It's a significant amount, but hundreds of millions of dollars more are being made on Facebook through virtual currency transactions that Facebook has no part of.
Facebook, of course, has its own official virtual currency, Credits, but most Facebook app developers can't integrate them with their apps, and are not required to use them.
The market for virtual goods, and the CPA offers that many consumers
complete to purchase them, is under attack. The first salvo was fired
by TechCrunch's Michael Arrington and the battle has now spread to the
The fallout was quick. And it continues: after being the target of no
less than six TechCrunch posts in the past week relating to these
'scam' offers, Zynga, one of the most prominent companies in the space,
has removed all of its CPA (lead gen) offers while it seeks to work with the third
party networks that provide them to root out the types of offers that
have come under fire.
Facebook advertising has been flush with good news lately — the company just announced that it is profitable for the first time and advertisers are increasing their buys across the network. But a new report showing that Facebook ads result in more engagement than display ads on other sites isn't the only reason people are investing in display ads on the network.
According to Lotame, social media ads result in fewer clicks but more engagement from consumers. But the real killer app for Facebook — for now — is virtual goods.
Social gamer Zynga is making a killing on the social network, and the company is scratching Facebook's back in return — pouring millions into ads to increase its user base.
If you had to guess what the most popular Facebook app on Facebook is, chances are you're not thinking that it has anything to do with fruits, vegetables and cows. But you'd be very wrong. What is the most popular app on Facebook? FarmVille.
As the name suggests, FarmVille is a game that gives users the ability to "grow delicious fruits and vegetables and raise adorable animals" on their own virtual farms. With nearly 35m active monthly users and 12m active daily users, FarmVille has just about grown itself into the most popular Facebook application ever. When FarmVille surpasses 35,554,755 active monthly users, it will surpass the record set by the How Well Do You Know Me? application.