Research firm Parks Associates forecasts social gaming will grow to a whopping $5 Billion per year business by 2015. Read the PA summary here. Additional articles and analysis from:
Marketing Vox ” Advertising innovations such as branded games, sponsored items, communities, and “advertainment” that enhance, rather than interrupt, a gamer’s experience will also generate new sources of revenues for game publishers, Park Associates finds. “
Escapist Magazine ” The biggest factor in the increasing profitability of the social games market, however, is the industry’s ready access to behavioral data, allowing the companies to cater their games towards the most profitable groups. “Zynga’s huge market share is the best proof of the competitive advantage made possible by properly leveraging consumer data,” said the research firm of social games giant Zynga. “
Games.com “Gaming on social networks has quickly become the most visible category of online games,” research analyst at Parks Associates Pietro Macchiarella said.
VentureBeat ” Macchiarella said that social game companies have figured out how to improve monetization of users. Most social games are free to play, where users play for free and pay real money in small amounts for virtual goods “
Gamasutra ” The research firm points out that companies are adopting a metrics-based approach to game design, and claims “the most powerful asset of social game developers is the quantity of behavioral data that they can obtain from their games.”