A new report released today by research firm Inside Network Inc.
(a division of WebMediaBrands Inc., NASDAQ:WEBM) concludes that the
total US market size for social gaming will reach $1.65 billion in
2012, up from $1.25 billion in 2011.
The report, "Inside Virtual Goods: The Future of Social Gaming
2012" is the latest original research study in the Inside Virtual
Goods series, co-authored by Justin Smith and Charles Hudson.
"The biggest player in social gaming, Zynga, filed its S-1 this
June, with expectations to raise $1 billion in its IPO. At the same
time, others developers in the market continue to see strong growth
in traffic, engagement, and monetization. Social gaming now makes
up an even greater share of the overall tech and entertainment
economy and will continue to grow in 2012." Justin Smith, founder
of Inside Network, says.
"Based on our research and market projects for growth in the US
social games market, Facebook could make over $500 million in
revenue through Facebook Credits activity in social games in 2012,”
adds Charles Hudson, co-author of the Inside Virtual Goods research
series.
Inside Virtual Goods: The Future of Social Gaming 2012 presents
updated estimates for next year’s social gaming market in the
United States, and reveals that next year’s social games market
will increase 32% over its 2011 size.
Smith and Hudson’s research is based on extended interviews with
top executives and entrepreneurs in social gaming. Inside Virtual
Goods: The Future of Social Gaming 2012 is the culmination of
months of original research and presents findings not available
publicly.
Where will social gaming go in 2012 and what are the biggest
opportunities left unclaimed?
Inside Virtual Goods: The Future of Social Gaming 2012 focuses
on the following areas:
1. Facebook Credits and the New Monetization Landscape: Early
Results – Now that the transition to Facebook Credits was
completed on July 1, what are the early results that developers are
reporting? We take an in depth look at metrics and trends.
2. Will 2012 (Finally) be the Year of Mobile Social Games?
– Now that mobile games monetizing through the virtual
goods model are becoming a bigger market in the US and around the
world, many social game developers have expanded their efforts to
tap these new platforms as well. Will 2012 finally be the year that
social games take significant root on mobile?
3. Social Game Development and Design – How do
small, medium, and large developers organize their teams? What do
development cycle times for original titles and “expansion packs”
look like? What is the role of testing and metrics in the
development process? A few key game genres with proven
mechanics and monetization have spawned dozens of fast followers.
Understand how publishers are continuing to innovate as we head
into 2012.
4. Monetization Data and Payment Trends – Now that
developers have proven the virtual goods model, what are ARPUs,
ARPPUs, and LTVs really like for different game genres? What is the
lifetime value of users, and how long do players stick around? We
take an in depth look at monetization methods and rates, and shed
light on where payments are headed in the coming quarters.
5. Customer Acquisition and Marketing Trends – As
the social gaming landscape has evolved over the past four years,
so have the ways that developers acquire and retain new users. How
have user acquisition costs changed, and what do Facebook’s changes
spell for the future of the marketing funnel? We take an in depth
look at data and trends.
6. Facebook’s Platform Changes, and What’s In Store for the
Future – Facebook has continued to change Platform
communication channels and functionality over the last year,
significantly altering the way social games reach users through
Facebook. Continued change is likely – what will it be, and how
will it impact the industry? Finally, will we see another platform
(like Google+) emerge? Our overview covers these developments,
their impact on the industry, and what else is in store.
In 2009, social games began to demonstrate that immense value
can be created on top of social networks. 2010 saw this value grow
beyond initial expectations and pique the interest of major
entertainment and media institutions. In 2011, social gaming’s
biggest player announce its plans to go public, the first company
in this industry to make such a move. According to Inside Virtual
Goods, 2012 will be a peak year in the industry thus far. Social
gaming, powered by virtual goods, will be the year's industry to
watch.
For more details and to purchase the report, please visit:
http://www.insidevirtualgoods.com
About WebMediaBrands Inc.
WebMediaBrands Inc. (Nasdaq: WEBM)
(http://www.webmediabrands.com), headquartered in New York, NY, is
a leading Internet media company that provides content, education,
and career services to media and creative professionals through a
portfolio of vertical online properties, communities, and trade
shows. The Company's online business includes: (i) mediabistro.com,
a leading blog network providing content, education, community, and
career resources (including the industry's leading online job
board) about major media industry verticals including new media,
social media, Facebook, TV news, sports news, advertising, public
relations, publishing, design, mobile, and the Semantic Web; (ii)
InsideNetwork.com, leading network of online properties dedicated
to providing original market research, data services, news, events,
and job listings on the Facebook platform, social gaming, and
mobile applications ecosystems; and (iii) AllCreativeWorld.com, a
leading network of online properties providing content, education,
community, career, and other resources for creative and design
professionals. The Company's online business also includes
community, membership and e-commerce offerings including a
freelance listing service, a marketplace for designing and
purchasing logos and premium membership services. The Company's
trade show and educational offerings include conferences, online
and in-person courses, and video subscription libraries on topics
covered by the Company's online business.
View all WebMediaBrands press releases:
http://www.webmediabrands.com/corporate/press.html
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