If there’s a company that has turned 21st century social networking into a dairy cow, it has to be Zynga. The San Francisco-based social gaming company has leveraged the social reach of Facebook along with the market reach of Android and iPhone to become a $ 1.1 billion online game development company. Its most popular games such as FarmVille and CitiVille, along with ChefVille and the recent Zynga Poker are played by approximately 265 million online social players as of January 2013. About 80% of its revenue comes from Facebook.
Real World Problems + Marketing Lessons
But all is not well with Zynga. After starting trading on the NASDAQ in December 2011 with an IPO of $ 10 per share, Zynga’s stock prices plummeted to $ 2 per share in 2012. It seems investors have become cautious about the business model. shaky of the company as its revenues failed to meet the forecast analyst as early as the 2nd quarter of 2012.
So what went wrong and what marketing lessons can we draw from Zynga? Firstly, it now appears that social games have a short, fluid retention factor where casual gamers soon lose interest in games. The players on his Farmville have dropped by millions every month. Studies have shown that social games only retain 38% of their users after one month and 14% before the sixth month. This makes it important for a social gaming company like Zynga to introduce new games without interruption. In fact, Zynga’s strategy has been to throw in more game titles to capture those who drop out of older games. The company has become a Pacman devouring small social game developers. Unfortunately, investors aren’t impressed. While the newer and supposedly more exciting social game stocks may promise more markets, Zynga is actually simply shifting their social from one title to another and has yet to impress investors that its market value is worth investing. .UFABET 888
But perhaps the most serious problem is that Zynga doesn’t have its main distribution channel: Facebook. Not owning the platform that its customers use to play its games has put Zynga at a long-term disadvantage. It is at the mercy of the leader of the social network. The tumultuous relationship between Zynga and Facebook is well known. Nobody knows what will happen to Zynga once her contract with Facebook expires in a month. It might be a bit late in the game that Zynga made a gaming presence with other social networking sites like Google+. Spreading its online gaming strength across multiple social networking sites is something it should have done before. As it stands, Zynga has put nearly all of its proverbial eggs in one basket. It’s like having only one shop to sell your products.
Leading the way from online gaming to gambling
One area where Zynga has had significant repercussions is in the world of online gambling. Zynga’s poker might just be a game where you buy a lot of fake money for real money online. But this has caught the attention of serious online gambling bosses who have been struggling for years to get more people to gamble online. 30 million online poker players every month is not something they can overlook. What was Zynga doing that they weren’t doing? It’s social media. Online gamblers have failed to capitalize on a ready market. If and when the US Congress finally gets to act together for a comprehensive online iGambling law, it will only take Zynga to replace his poker game’s fake money with real money to become king of the hill in gambling. online.