Why Facebook Games Must Get More Creative

The average cost to acquire new game players has risen up to 30 percent due to the decline in viral marketing options, says guest writer Josh Williams, president of Kontagent.

In its short life, the social games industry has changed dramatically. When the industry first started taking off, a pre-launch budget of a few hundred thousand dollars was considered large, whereas today larger titles spend several million dollars in pre-launch development. Where acquiring users in developed markets once cost nickels, today they cost dollars. Revenue that used to be a composition of ads, incentive offers, and direct purchases fueled by myriad payment providers is instead now dominated by direct revenue via Facebook Credits.

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