Ad dollars are a major part of free-to-play Facebook games, like Farmville and Mafia Wars. Still, virtual goods are expected to be the main driver of revenue for social games in the near future.
Understanding the popularity of social gaming is simple, said eMarketer senior analyst Paul Verna. Games like Farmville are all over Facebook and people can play at their own time pace, unlike casual multiplayer games.
Social gaming generated revenue around $856 million in 2010, with the number expected to be bigger than $1.3 billion by 2012. While virtual goods are expected to maintain their 60 percent share of social gaming revenue, advertising is expected to grow from 14.1 percent share of the market ($120 million) in 2010, to a 20.5 percent share ($271 million) in 2012.
Still, there is a chance that the market might have peaked, or will dilute in the near future. When you look at the number of active monthly users for the top 15 social gaming sites, the numbers appear to be leveling off quickly, Verna said. So there is a chance that there is a bubble there.
Social games are expected to see a 29 percent rise in the number of those who play at least one game a week to 68 million users in 2012. Within that larger group, virtual worlds will continue to have a place, but it will be much more narrow and niche over the next few years, Verna said.
Source: PaidContent
