Bloomberg provides an interesting video interview with IFEELGOODS, Inc CEO, Scott Silverman discussing Facebook Credits virtual currency.
Category Archives: Facebook
Forbes has an interesting article that discusses the evolution of virtual currency beyond the traditional monetary form of credits. From the article:
” A big takeaway is that while we typically associate currency directly with money, the rise of the social web and quantification is shifting that reality to become more inclusive of kinds of capital that were formerly intangible. “
Zynga rolls out its own reward system RewardVille and virtual currency called “Z-Coins”. Articles and analysis from:
Red Orbit ” Media conglomerates such as Walt Disney Corp. and Time Warner Inc. should be worried, says, BTIG Research analyst, Rich Greenfield. Zynga threatens to take viewers away from their televisions and movies. Disney responded to the threat by purchasing its rival, Playdom for $563 million last year. “
NPR ” The lure this time is “RewardVille,” a show of appreciation aimed at getting players even more absorbed in their online farms, cities, crime rings and poker games. The program unveiled a week ago doles out game points and credits that can be used to buy more virtual goodies on Zynga’s existing games. “
MarketingVox ” These games’ popularity is drawing people’s away from TV sets, movies and other sources of entertainment. “Media has been fragmenting, and Zynga seems to be doing the exact opposite. It is growing at a staggering rate and reaching eyeballs that none of these companies are doing. “
Video: Zynga’s Rewardville trailer
The following are articles that discuss the explosive growth of Facebook Credits virtual currency.
SFGate discusses the growing momentum of Facebook’s virtual currency, “Facebook Credits”. From the article:
” Facebook members use a regular credit card, PayPal account or mobile phone account to buy a certain value of Facebook Credits, starting with 15 credits for $1.50. Facebook Credits accepts payments using 15 currencies, including dollars, euros and yen.”
Inside Social Games has an excellent article about Facebook making a serious push to get social game players to purchase Facebook Credits virtual currency in 2011. From the article:
” Facebook, then, seems to have prioritized moving all direct payments over to Credits before messing with the variety of alternative payment options. That progression allows it to get Credits in front of the bulk of paying users while giving developers more flexibility around the switch. “
The Independent offers additional prespective on Facebook Credits.
” But some analysts believe the growth of this could become far wider if Facebook created more of its own games. Some predict that eventually Facebook credits could become currency to buy actual real-world products via the Facebook network. ”
SFGate discusses Facebook’s recent 50 Billion valuation within the context of Facebook Credits “tax”.
” Unlike Google or Microsoft, Facebook won’t have to figure out how to diversify its revenue. It just has to sit back and wait for the next Zynga or Groupon, design a way to tax that business (the way it suddenly sprouted Facebook Credits when Zynga got huge), and profit from the tax. ”
AllFacebook discusses forecast that project Facebook Credits eventually(potentially) generating $8 Billion a year.
” That’s exactly what Albert Babayev over at Seeking Alpha has concluded, after developing a model based on the future projections of Facebook revenue, with him expecting Facebook Credits to eventually become an $8 billion a year business. :
Reuters discusses TapJoy’s alternative ads for virtual currency model and the potential impact of Facebook Credits.
” Facebook plans to migrate its entire system over to Facebook Credits, an official virtual currency for all the applications running on the social network. But that hasn’t happened just yet, leading Tapjoy to bring in its best month of virtual currency transactions yet in December, Jessup said. Tapjoy is already prepared for the upcoming switch over to Facebook Credits, and is used on a number of other social networking sites like MySpace and Yahoo. “
Social gaming giant Zynga goes for the jugular and files for a patent for non-redeemable virtual currency. Is this move intended as a bargaining chip with Facebook or something much larger? Articles and analysis from:
TechCrunch ” While at first glance it seems like the patent’s strictures only pertain to poker chips, it explicitly references Zynga games Zynga Poker and Farmville in its “Examples of Embodiments” section, which delinates both “Non-Redeemable Virtual Currency” and “Non-Redeemable Virtual Poker Chips” as inventions that Zynga is claiming the rights to.”
AllFacebook ” For Facebook the stakes are higher. The social networking site earns a 30% cut every time Credits are used to buy virtual goods in a game. With the burgeoning popularity of social games on Facebook, it would be a serious blow if it lost this growing source of revenue.”
VentureBeat ” The patent filing, on which Zynga CEO Mark Pincus’s name is listed as one of the inventors, is arguably defensive, potentially orestalling intellectual-property claims against Zynga. But it could also give Zynga leverage in its negotiations with Facebook, the social network which connects most of Zynga’s players with each other.”
Online-Casinos.com ” Zynga’s patent application points out however that its virtual-currency uniqueness is that the currency exchange is only one-way. Players can put money in but they can’t take it out thus circumventing the online gambling dilemma.”
Tom’s Guide ” Essentially the company may be trying to patent the process of purchasing virtual money that cannot be re-sold. The patent also seems to indicate that Zynga may implement a fraud prevention system to inhibit players from using cash to purchase virtual funds from other players within Zynga products.”
Sometrics has partnered with Facebook so that its Game Coin virtual currency can be exchanged with Facebook Credits. Articles and analysis from:
VentureBeat ” Facebook itself views Facebook Credits as the equivalent to the introduction of the euro, which gave Europeans a single currency and encouraged more cross-border trade. Facebook believes Credits will encourage users to spend more money across larger numbers of apps, allowing the whole ecosystem to benefit”
InsideFacebook ” Sometrics has more than 250 publishers outside of Facebook signed up already, with a combined 225 million users it says, and it has gained experience figuring out what services to provide gamers, and connect them to publishers”
Social Networking giant Facebook partners with in-game monetization specialist PlaySpan to globally expand the reach of their virtual currency, Facebook Credits. Articles and analysis from:
InternetRetailer ” More than 75 developers use Facebook Credits in more than 200 games and applications on the social network. This agreement should spur significant growth in developers using Facebook Credits in the next few months, says a PlaySpan spokesman.”
InsideFacebook ” This deal helps Facebook quickly make it easier for users to pay in the international markets where PlaySpan has worked to develop payment partnerships.”
AllFacebook ” The additional payment options make it easier for developers to expand their international reach and attract a broader set of people, since not everyone has access to credit or debit cards or PayPal. “
Gamerlaw.co.uk “ Facebook Credits are an increasingly healthy source of revenue for Facebook – consumers pay real money for Credits and use those Credits in virtual goods transactions, e.g. in games like Farmville, with Facebook deducting a 30% transaction fee.”
Trialplay rolls out Dealspot, providing exclusive offers to players that are “in-game”. Articles and analysis from:
TechCrunch ” The company is partnering with Groupon, Tippr and Living Social for local deals, LOVEFiLM for subscription entertainment, branded retailers such as Yves Rocher and Lancôme for shopping, Rue La La and Mertado for flash sales and more.”
PRNewswire ” Monetization of social games is still in its infancy, with only 1-3 percent of the 300 million social game players actually purchasing virtual goods. However, with DealSpot, publishers can now monetize users around virtual items and in-game events rather than hoping that players visit a separate payment page.
Inside Network releases findings from their Virtual Goods forecast report that shows Virtual Goods sales will be over $2 Billion in 2011. Articles and analysis from:
Bloomberg ” The market will jump to $2.1 billion next year from $1.6 billion in 2010 and $1.1 billion in 2009, the San Francisco- based research firm said today in a report.”
Forbes ” As in this year, 2011 will also see the dominance of social games in the sales of virtual goods. In 2010, social games accounted for $835 million, or around half, of the total market size.”
CNN International ” The term virtual goods refers to digital items that are purchased for use online, in games and on mobile phones.”
The New York Times ” The figures are especially significant because Facebook is pushing all its game developers to use Credits, its virtual currency.”
Mashable has an excellent article about how to advertise within social games on social networks. From the article:
” Social games provide some unique opportunities for advertisers, as gameplay generally involves virtual goods — things players want, but often don’t want to pay for. Game publishers have begun to tie virtual goods or currency to “real world” purchases from advertising partners (spend $50 at the Gap, get 20 Facebook Credits, for example).”