Are you addicted to Candy Crush? You are not alone. Social gamers, those who play a video game on a social media platform, are generating massive revenues for Facebook and helping to support incredible causes.
In 2004, Mark Zuckerberg announced that Facebook would be open to third-party developers. Within eight months, 14,000 apps were running on Facebook. Today, one out of every four Facebook users plays games on the platform. Overall, 250 million people play games through Facebook, an 11 percent increase from 2012, and 927,000,000 total hours are spent each month on Facebook games. The amount of revenue Facebook made in 2011 was $1 billion. How does social gaming help Facebook make money?
Facebook and other social media platforms are able to make money through the games they offer when social gamers purchase in-game items. Candy Crush Saga, the biggest game on Facebook that became successful after going mobile, produces $850,000 per day… yes, per day. The game generates $310,250,000 per year. It is free to play, but users can make in-app purchases to help them beat levels. Levels start out easy and get gradually harder. Each user can only have five lives stored at a time. It takes 30 minutes for another life to generate and users eventually look for a boost to help them win just one more level leading to a purchase. Over seven million users are active each day on the game and that averages to $.11 per user. However, 70 percent of users have never paid a cent.
Social gaming is helping companies like Facebook make big bucks and raise funds for important causes. Social gamers playing Farmville 2 helped to raise funds for water.org. Through Farmville 2’s fundraising drive, 17,876 people have been supplied with lifetime access to clean water.
To learn more about social gaming and the impact it is making, check out this infographic presented by bestaccountingdegrees.net.