Zynga
ECOM6030 - WEB 2.0 STRATEGY AND INNOVATION
ECOM6030
CASE ANALYSIS OF ZYNGA HBS CASE
BY
LUK KA LAI
UID: 2012853746
FACULTY OF ENGINEERING OF THE UNIVERSITY OF HONG KONG
FACULTY
NOVEMBER 2012
Zynga is the world's fastest growing social game company, it brings online games with social platforms. According to Zynga reports of 2nd Quarter 2012 financial results
(http://investor.zynga.com/releasedetail.cfm?ReleaseID=695419), it has a DAU of
72million and MAU of 306 million. With the vast amount of active players, Zynga offers incentive opportunity for marketers.
As a case study, this paper gives a detailed analysis on Zynga's business model, its success key factors, competitive advantages as well as key challenges. Zynga has demonstrated an online game which is highly dependent on social network and generate revenue with virtual goods. It has built up an enormous community in the virtual world , there are numerous ways of potential monetizing from virtual world to physical world.
I have created an infographic which highlight some information about Zynga as a virtual world business.
Zynga is founded in July 2007 by Mark Pincus, the company is named after this CEO's dog and the logo is the depiction of his American bulldog. Within 5 years time, this bulldog iconic image becomes familiar to the social game players over 175 countries. Basically,
Zynga monetize through four main streams in-between two “planets” (physical and virtual). 1.
2.
3.
4.
Virtual goods sales
Display advertisements in the two “planets”
Affiliate offers marketing
Application install of ads company
1. Virtual goods sales
Following chart shows the trend of average bookings per user (ABPU) in three-year-time.
For Zynga business model, ABPU is referring to the average virtual goods sales per MAU.
Virtual products generate a majority of the revenue for Zynga, they involve almost 90% of total revenue. According to a research done by OnlineSchool.org,
ECOM6030
CASE ANALYSIS OF ZYNGA HBS CASE
BY
LUK KA LAI
UID: 2012853746
FACULTY OF ENGINEERING OF THE UNIVERSITY OF HONG KONG
FACULTY
NOVEMBER 2012
Zynga is the world's fastest growing social game company, it brings online games with social platforms. According to Zynga reports of 2nd Quarter 2012 financial results
(http://investor.zynga.com/releasedetail.cfm?ReleaseID=695419), it has a DAU of
72million and MAU of 306 million. With the vast amount of active players, Zynga offers incentive opportunity for marketers.
As a case study, this paper gives a detailed analysis on Zynga's business model, its success key factors, competitive advantages as well as key challenges. Zynga has demonstrated an online game which is highly dependent on social network and generate revenue with virtual goods. It has built up an enormous community in the virtual world , there are numerous ways of potential monetizing from virtual world to physical world.
I have created an infographic which highlight some information about Zynga as a virtual world business.
Zynga is founded in July 2007 by Mark Pincus, the company is named after this CEO's dog and the logo is the depiction of his American bulldog. Within 5 years time, this bulldog iconic image becomes familiar to the social game players over 175 countries. Basically,
Zynga monetize through four main streams in-between two “planets” (physical and virtual). 1.
2.
3.
4.
Virtual goods sales
Display advertisements in the two “planets”
Affiliate offers marketing
Application install of ads company
1. Virtual goods sales
Following chart shows the trend of average bookings per user (ABPU) in three-year-time.
For Zynga business model, ABPU is referring to the average virtual goods sales per MAU.
Virtual products generate a majority of the revenue for Zynga, they involve almost 90% of total revenue. According to a research done by OnlineSchool.org,