Zynga Needs More Words With Brands

Despite missteps, is social gaming company an untapped ad market?

Zynga put its investors on edge earlier this month after lowering full-year 2012 revenue projections. That clinched a new low for the social gaming darling’s stock, which dropped more than 70 percent since going public last December.

The company’s third-quarter earnings report to be released later this week is shaping up as a bloodbath, but Madison Avenue may give the social gaming market reason to be bullish.

According to gaming executives, investor analysts, advertisers and agencies, Zynga and its ilk are sleeping revenue giants.

By most estimates, only 5 percent of Zynga’s gamers ever buy anything in its games, which include FarmVille and Words With Friends.

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