Zynga’s ad revenues see big jump in 2011

Zynga, the maker of social media games FarmVille and CityVille, has generated advertising revenues of $27.3m (£17.2m) in its latest quarter, up 230% from the previous year.

CityVille

In its first earnings report since it filed its initial public offering last December, the San Francisco-based company reported $1.14bn (£727m) in total revenue during 2011, buoyed by an 85% increase in sales on the social network.

The company revealed that online game revenue was $283.m (£180m), an increase of 51% compared to the fourth quarter of 2010. Advertising revenue was $27.3m (£17.2m), an increase of 230% compared to the fourth quarter of 2010.

Zynga CEO Mark Pincus cited McDonald’s and Best Buy as key brand advertisers over the last twelve months and stated the company’s ad growth was due to both mobile sales and the launch of its latest franchise on Facebook, CashVille.

He adds: “Zynga set new records in the year in terms of audience size, revenues and bookings. We saw great momentum in mobile and advertising and ended the year with a strong pipeline of new games.

User payments on Zynga social games were revealed to account for nearly 12% of Facebook’s revenue last month, when the company filed its IPO.

Earlier this week the social games producer announced a tie-up with Hasbro to produce and distribute physical toys and games based on Zynga’s brands.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here