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It turns out that Zynga only accounts for 12% of their revenue. "In 2011, Zynga accounted for approximately 12% of our revenue, which amount was comprised of r
by apike 15y ago
It turns out that Zynga only accounts for 12% of their revenue.
"In 2011, Zynga accounted for approximately 12% of our revenue, which amount was comprised of revenue derived from payments processing fees related to Zynga’s sales of virtual goods and from direct advertising purchased by Zynga. Additionally, Zynga’s apps generate a significant number of pages on which we display ads from other advertisers."
It appears they would still be profitable without Zynga.
- veyron 15y ago"Zynga’s apps generate a significant number of pages on which we display ads from other advertisers" Are those ads counted toward the 12% statistic?
- anonymoushn 15y agoBased on my reading of the quote, the 12% does not include ads displayed on pages generated by Zynga apps.
- deleted 15y ago[deleted]
- brd 15y ago85% of revenue is from advertising. So either Zynga controls 80% of all non advertising revenue (aka the remaining 15%) or that 12% figure includes advertisements served on Zynga pages. Is it reasonable to conclude that Zynga constitutes 80% of FB's credit ecosystem?
- veyron 15y agoSadly the answer is yes (it is reasonable to assume 80% of FB's credit ecosystem targets Zynga assets). Check out Zynga's S-1 (since, thanks to the deal, most of zynga's revenue comes through FB credits, and those numbers will have been discounted because of FB's cut)
- jim-greer 15y agoNo, the 12% includes advertisements Zynga buys from Facebook, but not ads that appear on their pages. "In 2011, Zynga accounted for approximately 12% of our revenue, which amount was comprised of revenue derived from payments processing fees related to Zynga’s sales of virtual goods and from direct advertising purchased by Zynga. Additionally, Zynga’s apps generate a significant number of pages on which we display ads from other advertisers."
- jfarmer 15y agoFacebook does not take a cut of third-party display advertising. For example, if an advertiser pays Zynga to put a banner ad in their application or above the Flash widget containing their game, Facebook doesn't see a penny of that. Zynga pays Facebook to advertiser in the right-hand column, though. Lots. Additionally (and this doesn't count towards advertising revenue), Facebook Credits are mandatory for all games on the Facebook Platform, and Facebook takes a 30% cut any time a player purchases some.
- nekojima 15y ago"It appears they would still be profitable without Zynga." That assumes many of those Zynga users would still be on, or use Facebook as often, if it wasn't for Zynga or other games on the platform. The significant amounts of time spent on Facebook is due in large part to games and photos. That length of time on the platform helps to drive display ad revenue.
- veyron 15y agowhat's happening with project Z (or whatever zynga was trying to create to diversify away from facebook)?
- zerostar07 15y agoIndeed it's curious why zynga never launched it. What's more, they no longer create standalone websites for their games like farmville.com. Maybe something having to do with that Facebook agreement?
- simonb 15y agoApparently only 17% of time on FB is spent looking at photos: http://www.scribd.com/doc/79028052/Buddy-Media-DLD-Keynote-How-Social-Media-Influences-Consumer-Behavior http://www.scribd.com/doc/79028052/Buddy-Media-DLD-Keynote-H...
- vnorby 15y agoSo we can trade Zynga shares on Facebook quarterly earnings reports. Sounds good to me!