Press Releases

2011 Press

WebMediaBrands' Inside Network Research Releases Latest Research Concluding US Social Gaming Market to Reach $1.65 Billion in 2012

"Inside Virtual Goods: The Future of Social Gaming 2012" Market Research Report Released Today

San Francisco - September 19, 2011 - A new report released today by research firm Inside Network Inc. (a division of WebMediaBrands Inc., Nasdaq: WEBM) concludes that the total US market size for social gaming will reach $1.65 billion in 2012, up from $1.25 billion in 2011.

The report, "Inside Virtual Goods: The Future of Social Gaming 2012" is the latest original research study in the Inside Virtual Goods series, co-authored by Justin Smith and Charles Hudson.

"The biggest player in social gaming, Zynga, filed its S-1 this June, with expectations to raise $1 billion in its IPO. At the same time, others developers in the market continue to see strong growth in traffic, engagement, and monetization. Social gaming now makes up an even greater share of the overall tech and entertainment economy and will continue to grow in 2012." Justin Smith, founder of Inside Network, says.

"Based on our research and market projects for growth in the US social games market, Facebook could make over $500 million in revenue through Facebook Credits activity in social games in 2012," adds Charles Hudson, co-author of the Inside Virtual Goods research series.

Inside Virtual Goods: The Future of Social Gaming 2012 presents updated estimates for next year's social gaming market in the United States, and reveals that next year's social games market will increase 32% over its 2011 size.

Smith and Hudson's research is based on extended interviews with top executives and entrepreneurs in social gaming. Inside Virtual Goods: The Future of Social Gaming 2012 is the culmination of months of original research and presents findings not available publicly.

Where will social gaming go in 2012 and what are the biggest opportunities left unclaimed?

Inside Virtual Goods: The Future of Social Gaming 2012 focuses on the following areas:

  1. Facebook Credits and the New Monetization Landscape: Early Results -- Now that the transition to Facebook Credits was completed on July 1, what are the early results that developers are reporting? We take an in depth look at metrics and trends.
  2. Will 2012 (Finally) be the Year of Mobile Social Games? -- Now that mobile games monetizing through the virtual goods model are becoming a bigger market in the US and around the world, many social game developers have expanded their efforts to tap these new platforms as well. Will 2012 finally be the year that social games take significant root on mobile?
  3. Social Game Development and Design -- How do small, medium, and large developers organize their teams? What do development cycle times for original titles and "expansion packs" look like? What is the role of testing and metrics in the development process? A few key game genres with proven mechanics and monetization have spawned dozens of fast followers. Understand how publishers are continuing to innovate as we head into 2012.
  4. Monetization Data and Payment Trends -- Now that developers have proven the virtual goods model, what are ARPUs, ARPPUs, and LTVs really like for different game genres? What is the lifetime value of users, and how long do players stick around? We take an in depth look at monetization methods and rates, and shed light on where payments are headed in the coming quarters.
  5. Customer Acquisition and Marketing Trends -- As the social gaming landscape has evolved over the past four years, so have the ways that developers acquire and retain new users. How have user acquisition costs changed, and what do Facebook's changes spell for the future of the marketing funnel? We take an in depth look at data and trends.
  6. Facebook's Platform Changes, and What's In Store for the Future -- Facebook has continued to change Platform communication channels and functionality over the last year, significantly altering the way social games reach users through Facebook. Continued change is likely -- what will it be, and how will it impact the industry? Finally, will we see another platform (like Google+) emerge? Our overview covers these developments, their impact on the industry, and what else is in store.

In 2009, social games began to demonstrate that immense value can be created on top of social networks. 2010 saw this value grow beyond initial expectations and pique the interest of major entertainment and media institutions. In 2011, social gaming's biggest player announce its plans to go public, the first company in this industry to make such a move. According to Inside Virtual Goods, 2012 will be a peak year in the industry thus far. Social gaming, powered by virtual goods, will be the year's industry to watch.

For more details and to purchase the report, please visit:

Justin Smith, 650-646-5175
Charles Hudson, 650-249-0905

[email protected]

About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM) (, headquartered in New York, NY, is a leading Internet media company that provides content, education, and career services to media and creative professionals through a portfolio of vertical online properties, communities, and trade shows. The Company's online business includes: (i), a leading blog network providing content, education, community, and career resources (including the industry's leading online job board) about major media industry verticals including new media, social media, Facebook, TV news, sports news, advertising, public relations, publishing, design, mobile, and the Semantic Web (ii), a leading network of online properties dedicated to providing original market research, data services, news, events, and job listings on the Facebook platform, social gaming, and mobile applications ecosystems; and (iii), a leading network of online properties providing content, education, community, career, and other resources for creative and design professionals. The Company's online business also includes community, membership and e-commerce offerings including a freelance listing service, a marketplace for designing and purchasing logos and premium membership services. The Company's trade show and educational offerings include conferences, online and in-person courses, and video subscription libraries on topics covered by the Company's online business.

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