Facebook Inc is to generate $1 billion in revenue this year from social gaming. Most of the revenue is said to come from advertising. The $1-billion forecast also includes revenue from Facebook Credits, which allow users to buy items for games and other activities on the social network.
Facebook's more than 500 million active users are attracting a lot more ad dollars as companies step up online marketing. Research firm eMarketer estimated in January that ad spending on Facebook would exceed $4 billion this year. That is more than double levels of 2010. A big chunk of that ad revenue comes from social games that are played on Facebook's platform.
"Assuming Facebook is on track to produce $4 billion in ad revenue this year, $1 billion of that coming from social gaming is not outlandish," said Paul Verna, Senior Analyst, eMarketer.
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