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The brands have spoken: social gaming is god

Submitted by Brian Skepys on August 9, 2010 – 9:24 am17 Comments

Big brands are going where the money is: social gaming. As Facebook boosts its advertising revenue due to a surge in membership and traffic, brands are buying in to get a piece of the viewing time. Meanwhile, Google is making moves to get into the social gaming arena. Could this be the perfect social gaming storm?

The Wall Street Journal reported this morning that Honda Motors is teaming up with  “Car Town“, a new Facebook social game aimed at car enthusiasts, for the August 23 release of the Honda CR-Z, and McDonald’s has recently signed an ad deal with Zynga’s “Farmville“, the notoriously popular Facebook game with nearly 60 million active users. Brands are clearly catching on to the social gaming craze.

As we reported last week, Facebook ad revenues have jumped in the past year with overall revenue predicted to double to $1.4 billion in 2010. Across the social networking space, social gaming brought in $700 million in ad revenue and is expected to reach $2 billion by 2012, according to ThinkEquity, putting social gaming at the forefront of digital marketing all the sudden. This isn’t surprising considering Facebook’s 500 million active users who are investing more time to their profiles and online friends each month.

This comes at a time when Google is making its social gaming intentions clear. Last week it offered to buy social apps developer Slide for up to $282 million, and a month ago it made a similar offer to “Farmville” developer Zynga. But it’s not just Google – Walt Disney Co., Electronic Arts and Game Stop have all made social gaming acquisitions in the past few weeks.

And you thought social gaming was nothing but, well, fun and games.

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