Tuesday, 30 October 2012

How Does Zynga Make Its Money?




Zynga makes money in many ways. They sell what is called 'virtual goods.' For example, if you were on Farmville and you wanted more land, then you would buy this land using the online store to purchase it with your credit card. Another way they make money is advertising for other companies. There are three ways to of advertising: banner ads, video ads and product placement.

Banner ads usually surround the page. They are the biggest part of advertising revenue for the social gaming industry because the games generates so many views. They have a CPM of about $2.


Video ads are the ad format with the most revenue per view. They are priced either by a CPM of $35 or cost per completed view.

zynga farmville mcdonalds product placementProduct placement is were a brand places itself into a game somehow. For example, McDonald's had included in-game goods. Starbucks had an in-game quest which was to collect all the ingredients to make a Frappuccino. 



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