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Zynga (ZNGA) Developing an Advertising Platform

 October 23, 2012 10:50 AM

(By Balachander) Zynga Inc. (NASDAQ: ZNGA), a social-gaming company, is said to be developing its own advertising platform in a move to focus more on mobile games.

"The platform is still under development, but some of the components could launch by the end of the year," AllThingsDigital reported, quoting multiple sources familiar with the company's plans.

The platform may not be available to third-party developers immediately, according to the report.

AllThingsDigital reported that "the platform could enable the company to expand ... into more lightweight experiences, including banner ads, interstitials, video pre-rolls and incentivized downloads."

Zynga, with over 300 million monthly active users, gets majority of its revenue from sales of games or in-game virtual goods. The company announced its Zynga Platform for social games in March in a move to reduce dependence on Facebook (FB) and focus on its online game network and mobile games.

The company recently lowered its 2012 forecast, citing reduced expectations for certain web games including The Ville, and delays in launching several new games. Zynga also forecast a third-quarter loss.

Trefis has a $3.30 price estimate for Zynga, which stands 30 percent above its market price. The stock analysis service expects Zynga's new platform, gaming network and online gambling initiatives to account for much of its future earnings potential.

The company has already started marketing games by other studios and could become the default cloud-gaming platform, thanks to the scalability and immense marketing reach it offers, Trefis wrote.

Shares fell 3.02 percent to trade at $2.25 on Tuesday.


Rich
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