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.


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.

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