Zynga

Business Model

Games developed by Zynga are free to play, and yet they still make a massive profit from any games they make. The majority of this is thanks to micro-transactions such as selling extra content, like extra items or clothing in game. However most customers will not pay more than £1 for this kind of content, though if millions of people buy these items Zynga still make a sizeable profit. However it’s because of this that Zyngas profits are somewhat limited, as if not many people are playing a game they develop, they will make virtually no profit.  A portion of Zynga’s profits also come from advertising, as their games often advertise an upcoming product, like a film or game. However again, this is limited as not many companies will want to advertise on an unpopular game.

Farmville 2
On 26th of June, Zynga announced farmville 2 the sequel to the extremely popular farmville. Farmville 2 has been shown at various press events as part of its advertising campaign to appeal to and inform investers, covering mainly the business side of the game. Another integral part of Zyngas marketing for farmville 2 is viral marketing. Often social games are advertised not only on the social websites that use them, but all over thye internet, on popular sites like youtube.