4 ms·

From what I've read, Zynga's ad spend represents a huge portion of Facebook's revenue. If that's true, this could pull them right back into the red. However, i

by mrshoe 16y ago

From what I've read, Zynga's ad spend represents a huge portion of Facebook's revenue. If that's true, this could pull them right back into the red. However, it's unclear whether Zynga would continue to advertise on Facebook even if their games no longer run there. I'm pretty sure much of their growth is due to ads on Facebook. It really would be the dissolution of a symbiotic relationship, which I imagine will be tough on both companies. Seems like the perfect candidate for an acquisition, but who would acquire whom? Does Zynga bring in more revenue than Facebook?

lenley 16y ago
Interesting, I dont think Zynga brings in more revenue than facebook; however, facebook is trying to gradually acquire 30% of Zynga's revenue through facebook currency. Fb doesn't even need to acquire Zynga. Zynga has a very weak hand, and facebook can always give priority placement to game companies that decide to play by the new fb rules. Zynga's games are absolutely replaceable all the game companies have games that are almost perfectly identical. This "leak" shows how weak Zynga's position actually is.
- allwein 16y ago
  The games themselves may be replaceable, if you're just starting out. But I don't think that anyone who has invested over a year in gaining achievements and advancement in FarmVille is going to just switch to a new farm game and start all over again.
  - lenley 16y ago
    That's quite true, I hadn't thought of the individual achievements in the game. It will be interesting to see how strong that investment would be for users.
  - richardw 16y ago
    Agreed, and these days I'd say most of Zynga's marketing is piggybacking on their existing games. They use their position as leverage to introduce new 'properties', which I'd guess they could use to direct you off of Facebook. Especially if this off-FB site of theirs takes off and the bad press continues.
ssclafani 16y ago
Facebook could do anywhere between $1.1 to $2 billion in revenues this year. Zynga is doing at most $600 million.

by mrshoe 16y ago

lenley 16y ago

Interesting, I dont think Zynga brings in more revenue than facebook; however, facebook is trying to gradually acquire 30% of Zynga's revenue through facebook currency. Fb doesn't even need to acquire Zynga. Zynga has a very weak hand, and facebook can always give priority placement to game companies that decide to play by the new fb rules. Zynga's games are absolutely replaceable all the game companies have games that are almost perfectly identical. This "leak" shows how weak Zynga's position actually is.

allwein 16y ago
The games themselves may be replaceable, if you're just starting out. But I don't think that anyone who has invested over a year in gaining achievements and advancement in FarmVille is going to just switch to a new farm game and start all over again.
- lenley 16y ago
  That's quite true, I hadn't thought of the individual achievements in the game. It will be interesting to see how strong that investment would be for users.
- richardw 16y ago
  Agreed, and these days I'd say most of Zynga's marketing is piggybacking on their existing games. They use their position as leverage to introduce new 'properties', which I'd guess they could use to direct you off of Facebook. Especially if this off-FB site of theirs takes off and the bad press continues.

ssclafani 16y ago

Facebook could do anywhere between $1.1 to $2 billion in revenues this year. Zynga is doing at most $600 million.