Posted by Zynga in Press Articles
Dec 30, 2009 8:33:11 AM
Excerpt: Veteran entrepreneur Mark Pincus has had a huge year. His company, Zynga, went from being one of several relatively small social gaming companies on Facebook’s developer platform to clearly take the lead in terms of users — and, from what many people hear, revenue.
With a raw total of 230 million monthly active users and nearly 60 million daily active users on Facebook alone, it is many times larger than its nearest rivals, according to AppData. These numbers do not include the company’s games on other platforms, like MySpace and the iPhone.
Based primarily on the sale of virtual goods within games like virtual farm
game FarmVille, the company will likely do at least $200 million in revenues
this calendar year, according to our estimates, and revenue growth is looking
very strong as we enter 2010.
helping zynga connect the world through games...
As a rough 2009 draws to a close, the digital marketing world is
looking ahead to 2010, hoping to deliver stronger growth in the
sector, which is one of the few bright spots in the media world.
What lies ahead? We identified 10 trends that are sure to make
waves in 2010.
1. Content at Scale.
In remaking AOL, CEO Tim Armstrong has gone back to the future by
betting on content. But Armstrong doesn't believe
content is king in the old way. In the new world, the race is on to
use data and automation to produce content that people (and
advertisers) want at as low a price as possible. That's led to the
rise of so-called content mills like Demand Media and
Associated Content. AOL is betting its future on the
area. The question for 2010 is whether this automation and
data-driven approach will lead to a flowering of useful information
or more detritus clogging search results with low-grade, ad-heavy
Web pages.
2. The End of the Digital Agency.
There won't be a moment when the invisible line dividing digital
and traditional agencies is completely erased. But 2010 will see
the distinction blur to the point of being meaningless.
The Great Race, as Forrester Research calls it, pits
digital shops looking to hone their branding chops against
traditional agencies adding tech skills. More digital agencies will
compete for (and sometimes win) through-the-line assignments, and
more clients will be willing to choose a lead agency based on which
of its roster shops comes to the table with the best idea.
3. Social Gaming.
At first glance, it's easy to wonder why anyone would use FourSquare, the mobile
social network that awards users points for checking into
restaurants and bars. Start using it and you'll see how addictive
it becomes in competing to become "mayor" of your local coffee
shop. The same goes for the runaway success of social gaming
company Zynga, which has shown that people will spend real money
for virtual goods. Marketers have just begun to dip their toes in
the area, but brands are certain to explore it further in
2010.
4. Demand-Side Platforms.
If there was a watchword of 2009, it was efficiency. That's likely
to continue well into 2010. Internet advertising remains
inefficient to buy and sell. At the same time, behavioral
advertising has attracted even more marketers to the notion of
buying the audiences they want, using content as one of several
signals. These trends led to the construction of ad exchanges,
which in turn has fueled the development of agencies building out
demand-side platforms like Interpublic Group's
Cadreon and Publicis Groupe's
VivaKi. More ad inventory will flow through these
systems, threatening to further disrupt the digital publishing
landscape with more automation.
5. Engagement Pricing.
There's no shortage of critics of the Web's ad pricing system. In
crude terms, it divides into two buckets: clicks for direct
response and impressions for branding. As the Web matures as a
branding medium, 2010 should be the year when more publishers and
marketers explore new pricing mechanisms that better reflect their
goals. Promising starts have already been made in
cost-per-engagement and time-based ad models by networks
like VideoEgg and Lotame. The challenge is the same for any new
approach: New models might make more intuitive sense, but they
diverge from the accepted media-planning practices.
6. Augmented Reality Grows Up.
To date, augmented
reality has proven to be another gee-whiz tool for agencies. Only a
few efforts, like AKQA's tool for the U.S. Postal Service that
uses AR to find the right size packages, pass the useful test. That
should change as AR and mobile converge to provide an array of
useful services. City guide Yelp has shown the possibilities of AR
with an iPhone app that lets users view reviews of nearby
businesses (like restaurants) through their phone camera. While AR
will likely retain its cool factor, its test for 2010 is in proving
it can live up to the hype.
7. Social Media Morphs into Digital.
If 2009 was the Year of Twitter, 2010 will be the year when
social-media tools are treated as part of the fabric of the digital
world. As Altimeter Group's Charlene Li predicted, social media
would become "like air," and be pretty much everywhere. That means
publishers and marketers will use tools like Twitter and Facebook Connect to make experiences
more social. More marketers will look at social as an integral part
of their digital strategy, rather than a stand-alone area for
experimentation.
8. Privacy Wars.
Data on consumers, the Web's greatest strength, might also be its
Achilles heel. Scrutiny on the
collection and use of consumer information online will
increase in 2010, as regulators grapple with whether the industry
needs new rules of the road that give consumers more notice and say
when their information is collected. The ultimate bogeyman -- an
opt-in requirement for collecting behavioral data -- probably
wouldn't fly, but Web players will likely be required to give more
notice and choice to consumers when tracking their digital
footprints. The ad-preferences dashboards rolled out by Google and
Yahoo are a sign of things to come. Another possibility is marking
behaviorally targeted ads to give consumers an easy way to opt out
of tracking.
9. Data Gets Creative.
Until recently, data has remained the preserve of ad targeting.
Expect that to change in 2010 as more marketers tap into the
popularity of data visualization by providing tools for consumers
to see data in action. Sprint used this approach to produce a hit
advertising campaign with the Sprint Now widget. The king of this
approach remains Nike Plus, which uses data visualization to show
runners how they're progressing. Thanks to open application
programming interfaces, Twitter has spawned dozens of data
visualization offshoots, conditioning people to mix their social
data to find interesting trends.
10. The Year of Mobile, Finally.
After many false starts, 2010 figures to be the year when the
mobile advertising market finally takes off. Heavyweights Apple and
Google are poised to face off in the key market, with Google
pouring its seemingly infinite resources into the development of
the Android operating system. The
competition will open up new opportunities for marketers in the
burgeoning app economy. The biggest push should come in
location-based services, which hold the possibility of giving
brands the chance to minutely target consumers.
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FARMVILLE, U.S.A. -- Welcome to a farm where
pink cows give strawberry milk, wheat is ready to harvest in three days and
neighbors are always eager to give you a banana tree or reindeer.
And more than 65 million people "live"
there.
This mythical place is FarmVille, one of the
Internet's most popular games. Tens of millions of "farmers" have
joined the online agricultural experience, and on any given day 27 million of
them are hard at work growing virtual crops and raising cybernetic animals of
all stripes.
Bill Mooney is FarmVille's secretary of agriculture.
The vice president and general manager of Zynga, the company that created
FarmVille, told the Capital Press he wanted to create a fun experience that
allows players to connect with friends and express their individuality.
"We knew FarmVille would be a hit, because
the game has successfully captured the essence of going back to the basic
mechanics of life and resonates well with players all over the world,"
Mooney said.
Developers tried to keep the game realistic with
varied times for harvest and the inclusion of tractors, fuel and animals,
Mooney said.
There are also aspects that are not entirely
realistic, such as baby elephants and alien cows, he said.
Mooney said he has heard from farmers and others
in agriculture who say they love the game or who want to partner with the
company.
Zynga is open to future collaborations, Mooney
said. He is currently discussing a partnership with the FFA. Zynga spokesperson
Lisa Chan said the company has been in talks with the national organization,
but no agreement has been reached.
Julie Adams, National FFA director of marketing
and communications, said applications like FarmVille, even though they don't
accurately represent agriculture, demonstrate the fondness the public has for
farming.
"It shows at least an appreciation for
where your food comes from," Adams said.
The popularity of online farming games is
exciting, said Sarah Hubbart, communications coordinator for Animal Agriculture
Alliance.
"It's showing people are interested, having
a good time growing virtual crops and taking care of their virtual
animals," she said.
In November, the alliance posted a video on
YouTube titled "The Real FarmVille," comparing the game to real
farming.
"It's a simple, straightforward video that
shows that farming is a lot harder than it looks when you're just playing it on
your computer," Hubbart said. "We're just hoping to reach some of
those people who play the game and get them thinking about where their food is
coming from."
Lebanon, Ind., professional agricultural speaker
and social media consultant Michele Payn-Knoper said farm games and social
media like Facebook and Twitter can be used by farmers to interact with the
public. The games provide a fun, quick way for users to get in touch with
farming, she said.
The biggest opportunity is for agriculture to
have a voice in the conversation, she said, noting many anti-agriculture
activists already use such outlets.
"If you're not there, rest assured, many of
the anti-agriculture activist groups are there having a voice for you,"
she said.
Payn-Knoper said she knows farmers who, in
addition to using Facebook or Twitter, also play FarmVille.
The game is especially popular with teenagers.
Robbie Lulay, a sophomore at Regis High School
in Stayton, Ore., has played FarmVille about a month. About 40 of the 119
students at the rural school play FarmVille. Lulay said he got started through
friends on Facebook.
Lulay's parents farmed in the past, and he lived
across the street from a farm. He enjoys working his own virtual land, even if
the game isn't realistic.
"Eh, it's not too close," he said.
"Your plants don't get diseases or anything, but they die if you don't
pick them."
How to play
When they sign up, FarmVille users receive a
small parcel of land, which they can till and plant seeds for various crops,
acquiring experience points and virtual gold for their efforts when they
harvest the crop.
Farmers also raise animals, collect eggs from
chickens, use pigs to find truffles and milk cows. Put a bull and a cow
together in your dairy barn and soon you will have a calf.
Friends can share free gifts, from livestock to
fruit-bearing trees. They can also visit a neighbor's farm and earn points and
gold by scaring away pests or applying fertilizer to help their friends' crops
grow.
As points accumulate, the farmer can purchase
more land, animals, housing, equipment and more expensive crops.
Farm games grow
The number of online farm games is growing,
developers told the Capital Press.
Like FarmVille, SlashKey's new game, Farm Town,
is on Facebook. Another developer, PlayMesh, has announced it would follow its
popular game, iMafia, with iFarm, a game for the iPhone.
More than 1 million people downloaded the game
in 10 days, PlayMesh CEO Charles Ju said.
The iFarm game incorporates drawings of real
images of plants as part of an "immersive farming experience," Ju
said. But some aspects of farming were omitted for the sake of simplicity.
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