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Zynga CEO Mark Pincus On Growth, Ads, and Making Money

Tuesday, 26 Jun 2012 | 4:51 PM ET
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Zynga CEO Mark Pincus sat down with CNBC immediately following his "Unleashed" presentation of new games and his plans to grow the company's distribution with a new gaming platform and a mobile distribution network it's opening to outside developers.

The centerpiece of Zynga's 'Unleashed' was a new way to bring together its players across all devices and platforms, what it describes as a "game lobby."

The company's new cross-platform network, called "Zynga with friends" crosses both mobile and social gaming. Gamers communication centers on a message center - which will live both on Facebook and Zynga.com - will offer gaming suggestions based on what friends are playing, a list of players friends, and updates on what friends are playing.

One of the biggest changes is Zynga's launch of multiplayer gaming, along with group chat, which starts today with new hit game Bubble safari.

So how will this boost Zynga's revenues?

Zynga CEO: Excited for Facebook Ads on Zynga
Zynga has launched "Zynga With Friends," and CNBC's Julia Boorstin discusses advertising, the mobile industry and stock value with Mark Pincus, Zynga president & CEO.

Pincus says the goal is to build large audiences for new games, and some of those newer games are seeing "higher buyer conversion rates."

Another key is advertising.

The bigger the user base, the more money Zynga can make from ads. With Facebook starting to serve ads to Zynga.comjust this past Friday, there's potential for this to turn into a massive revenue stream. Pincus addressed questions about the fact that fewer than 5 percent of players pay to play, by saying that advertising will be a key way to make money from everyone who plays Zynga's games.

CNBC also talked with Kleiner Perkins partner and Zynga board member Bing Gordon. He says that "advertising is already working" for Zynga, and that it's inevitable that more people will pay to play.

Questions? Comments? MediaMoney@cnbc.com

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  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.