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Thursday, 19 July 2012 - For some Zynga games, mobile produces more revenues per user than Web: CEO |
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See the best of Reuters photography.  See more | Photo caption  Inside the London Olympic Village A look inside the Olympic Village, where athletes from around the world will live and play for the London 2012 Olympic Games.  Slideshow  Religion in Mexico Though Mexico has one of largest Christian populations in the world, the country still shares faiths with a host of other religions.  Slideshow  For some Zynga games, mobile produces more revenues per user than Web: CEO Tweet Share this Email Print Related News Google CEO Page recovering, was in office this week Thu, Jul 12 2012 RPT-Social networks scan for sexual predators, with uneven results Thu, Jul 12 2012 Analysis: Is Twitter building ad business at expense of innovation? Wed, Jul 11 2012 Russia-focused online games developer eyes new markets Wed, Jul 11 2012 After Farmville success, Zynga not ready to plunge into mobile Tue, Jul 10 2012 Analysis & Opinion Ad startup Session M nabs big clients, expands Rovio set to launch its next mobile game “Amazing Alex” Related Topics Tech » Media » Facebook » Internet entrepreneur and Zynga CEO Mark Pincus attends the Allen & Co Media Conference in Sun Valley, Idaho July 12, 2012. Credit: Reuters/Jim Urquhart By Gerry Shih SAN FRANCISCO | Wed Jul 18, 2012 4:27pm EDT SAN FRANCISCO (Reuters) - Some of Zynga's most sophisticated games, including "FarmVille," generate greater revenue per user on smartphones than on Facebook's Web-based platform, the company's chief executive, Mark Pincus, said Wednesday. Some of Zynga's deeper-engagement games -- titles like "FarmVille" that falls into what the company calls its "invest-and-express" category -- successfully generate revenues from smartphone users because of their mobile format as well as gamers' demographics, Pincus said. "On mobile they actually monetize higher than on the Web," Pincus said. The comments came at a technology industry conference hosted by Fortune Magazine, where Pincus fielded questions about Zynga's sagging stock price and its closely watched mobile strategy. Zynga shares traded at $4.61 on mid-day Wednesday; the shares are down by more than 50 percent since going public at $10 a share last December. The company, which makes 92 percent of its income from games on Facebook, has made a major push in recent months to expand its mobile offerings and lessen its dependence on the world's largest social network. Pincus's comments provide a point of optimism for the company -- and a consumer Internet industry that has broadly struggled to squeeze revenues out of mobile users. Many companies serve ads to make money, but the smartphone screen offers a limited canvas to display ads. The smartphone format, however, benefits games like "FarmVille," because mobile users are more inclined to make in-game purchases, Pincus suggested. "The friction around spending -- the behavioral friction is much, much lower on mobile," he said. He also cited demographics as playing a role in the performance on mobile . "Smartphones are more concentrated in North America and Western Europe," he said. "Facebook is more evenly dispersed." But he acknowledged that some of Zynga's most popular mobile games, casual titles like "Draw Something" and "Words with Friends," do not "monetize as well as our high-engagement games." Pincus spent more than $180 million earlier this year to acquire the game studio behind "Draw Something," which began to wane in popularity after the deal. When Fortune Magazine writer Adam Lashinsky asked Pincus if he rejected the notion that the deal proved ill-advised in hindsight, Pincus demurred. "It's too early to call it after one quarter," Pincus said. (This story corrected headline and paragraph one to show reference is to revenue per user) (Editing by Leslie Adler) Tech Media Facebook Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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