The Top 4 Facebook Gaming Companies – How Much Are They Making?

By Leo Sark Comment

It is no secret that the social gaming companies on Facebook have undergone explosive growth in the past several years.   As with any rapidly expanding industry, several market leaders have emerged. More after the jump.

*DAU – Daily Active Users
*MAU – Monthly Active Users

Zynga is the clear market leader by a massive margin. In fact they have more than 6.6 times the MAUs of their second largest competitor (CrowdStar) . Not only do they have the highest number of MAUs out of the above mentioned companies, but they also have the highest daily engagement (22.2% of Zynga’s total monthly active users come back to play daily!). Engagement has a direct correlation to revenue and virality, however for our calculations we are going to use the MAU metric for each company to calculate their monthly and yearly revenue projections, since the DAU numbers tend to fluctuate from month to month.

There is a lot of speculation about how much revenue these gaming companies are generating. I’ve recently learned from several industry insiders that the monthly average revenue per user (ARPU) ranges from $0.22-$0.32 depending on the game genre and quality. Based on those estimates we can generate the following projections:

Even though Zynga is projected to generate around 1 billion dollars in revenue in 2011 (and this matches projections), their competitors’ numbers are far from miniscule. With time we will definitely see more companies enter this market space, which will bring both innovation and improved quality, but for now all of the above are reaping the benefits of beings early entrants.