Parks Associates forecasts revenues in the social gaming market will increase by five times from 2010 to 2015, due in large part to advertising revenues and sales of virtual items. These factors already pushed revenues over $1 billion in 2010, according to the international research firm, which will present research from the new report Social Gaming: Market Updates at the Game Investment Conference (GIC) in Austin, Texas, on April 13. “Gaming on social networks has quickly become the most visible category of online games," said Pietro Macchiarella, Research Analyst, Parks Associates.

"Right now more than 250 million people play games like Zynga's CityVille and FarmVille on Facebook every month, and both game developers and marketers have taken notice. Big brands such as McDonald’s and 7-Eleven have carried out cross-promotions with existing social games.” “The most powerful asset of social game developers is the quantity of behavioral data that they can obtain from their games," Macchiarella said. "The abilities to measure the efficacy of different gameplay mechanisms, to tweak game design in near-real time, and to test new models are advantages that traditional gaming companies will never have. Zynga’s huge market share is the best proof of the competitive advantage made possible by properly leveraging consumer data."

Advertising innovations such as branded games, sponsored items, communities, and "advertainment" that enhance, rather than interrupt, a gamer’s experience will also generate new sources of revenues for game publishers. Macchiarella will present “Social Games” on Wednesday, April 13, at the Game Investment Conference (GIC).

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