Zynga Starts Third-Party Game Promotions For Platform Partners

May 4th, 2012 by Trefis Team
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Zynga (NASDAQ:ZNGA) launched its own gaming platform earlier this year in order to reduce its dependence on Facebook. Through the Zynga platform, it would enable other game developers use its platform and API to host their own games and extend the reach of their games using Zynga’s vast cross-marketing potential. It also announced deals with Mob Science, Row Sham Bow and Sava Transmedia at the launch and signed up some major gaming companies such as Konami, Playdemic and Rebellion later. [1]

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This week it started cross-promoting third-party games by other developers to its existing user base. The first game will be Woodland Heroes by Row Sham Bow. It will be promoted using Zynga’s zBar which is on top of every Zynga game. Zynga may generate a significant amount of additional revenue by driving traffic to games by its platform partners.

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By becoming the de-facto social gaming platform, Zynga won’t have to depend on just its own games to generate revenue, freeing itself from the pressure of having to continually churn out new hits to maintain revenue growth as well as its position at the top of the social gaming leader-board.

Rob Dyer, head of platform partners at Zynga, said:

“We intend to drive traffic and test promotions in ways that ensure the best experience for players and our partners. It’s also an area we’re continuing to work with our partners to refine. Driving players to try out new social games is one thing, but the trick is making sure they stick around; that’s where some of our upcoming tools to increase social engagement come in.

This also marks just the start of traffic and revenue generating tools that we’re implementing for Zynga Platform partners. We’ll soon roll out more promotions across our network for some of our other early partners, so stay tuned.”

Zynga is the world’s largest social gaming company with more than 280 million monthly active users. It competes primarily with Electronic Arts (NASDAQ:EA), Playdom which was recently acquired by Disney (NYSE:DIS) and other independent social gaming studios. We have a $14 Trefis price estimate for Zynga, which stands nearly 60% above its current market price.

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Notes:
  1. Zynga starts promoting third-party partner social games, VentureBeat [↩]