Zynga

There are many ways a company can use traditional methods of marketing and develop the market and scope of their product. However, the trends have changed and in this era of technological advancements, social media usage has become an incredible distribution channel for selling products. It has suddenly proved to be a great mode of marketing and sales strategy for companies. E-Marketing companies have come up with innovative ways of selling their unique services and products by using the world wide web to its limitless possibilities. A great example is Zynga. They were ranked the 2nd most favored tech start ups. The games are used in over 166 countries with 60 million daily users playing over two billion minutes a day! The company is an online gaming company that changed and utilized users spending time online on social networking sites to its benefit by giving them interactive and interesting games that allowed them to compete with their friends. Two of their most popular games are Farmville and Cityville, which are offered through the Facebook platform and labeled as social games. They are very addicting games that encourage the player to bring their friends to the game. Most users do not spend any money on the game but there are those players that are willing to pay money to zynga in exchange for tokens needed to get them ahead in the game. One major concern for investors is that there is a major reliance on Facebook. They wonder if Zynga would remain successful if Facebook one day decides to drop the application.

Links:

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2822