Social Game Monetization: New Channels to Show You the Money

[Editor’s note: Vijay Chittoor is CEO of Mertado, a startup that offers real-world merchandise within social games. He was previously director of product management at Kosmix, and worked as a consultant for McKinsey.]

By all estimates, U.S. social gaming revenues are growing robustly and are expected to reach $1.25 billion by 2011. However, individual game developers still monetize an average of only one to three percent of their audience through virtual goods.

As a result, alternative monetization techniques have been developed for non-paying users — primarily advertisements and promotions linked to virtual currency (including offers, surveys, cross-promoting other apps, etc.).

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Spring Special

Save 30% Off an ADWEEK Subscription Today!

View Your Options

Already a member? Sign in