OK, so what’s Playdom again?
Playdom is the third biggest player in the social games space behind Zynga, which took an $180 million investment from Russian firm DST yesterday, and Playfish, which EA (ERTS) acquired for $300 million plus a $100 million earnout earlier this fall.
How do they make all that money?
John told Atul that Playdom makes 75% of its money selling users virtual goods. 15% of its revenues are from third-party advertisers that buy virtual goods for users in exchange for those users trying a product (this is called “offers” marketing). Advertising accounts for 10% of Playdom’s revenues.
Too see precisely how Playdom makes money selling virtual goods, don’t miss: How A Stupid Facebook Game Makes Millions.
Some more quick facts:
- Playdom has 28 million monthly active users who play 15 different games.
- The number of games will double in the next year.
- 60% of these users come from MySpace. 40% come from Facebook.
- Playdom has 220 employees.
- John says the social games industry could reach $3-5 billion over the next three years.
- Playdom users are typically 18 to 35 years old.
Still confused? Then you really, really should read: How A Stupid Facebook Game Makes Millions.