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Slide 1: RAPTR ZYNGA REPORT 9/27/11 For Inquiries - Raptr-Reports@Raptr.com
Slide 2: ALL EYES ON ZYNGA With more than 250 million consumers playing Zynga games such as FarmVille, CityVille, and Empires & Allies, Zynga dominates the social gaming space with a 60% market share*. Zynga’s projected ~$20 billion valuation makes it one of the decade’s most highly anticipated IPOs. Investors, competitors, and gamers all want to understand how Zynga will continue to grow and engage its massive user base. This exclusive Raptr Report will provide details about Zynga’s users and their gaming behavior based on Raptr’s 10 million users. *Source: HIS Screen Digest May 2011 2
Slide 3: TABLE OF CONTENTS • Overview of Zynga’s position compared to the top core franchises • Overview of Zynga’s dominance in the top 10 social games • Overview of Zynga’s increasingly engaged and loyal players • The crossover of players between Zynga and core games • Implications of Zynga’s most active players, the “TwoPercenters,” and how they contribute to Zynga’s success 3
Slide 4: Overview of Zynga’s position compared to the top core franchises 4
Slide 5: PLAYTIME: ZYNGA’S VILLE FRANCHISE VS CORE FRANCHISES • In terms of total time spent playing online since 2008, Zynga’s growing user base of engaged Ville consumers are playing almost as much as fans of the top core gaming franchises. Top Franchises by Share of Time Spent Halo, 14% Warcraft, 17% Zynga's Ville Games*, 13% *Assassin's Creed + Gears Core Gaming of War + Mass Franchises**, Effect + Grand 12% Theft Auto, 12% Call of Duty, 43% *Zynga’s Ville games include: YoVille, FarmVille, PetVille, FrontierVille, CityVille ** Core gaming franchises include: Assassin’s Creed, Gears of War, Mass Effect, Grand Theft Auto 5
Slide 6: ENGAGEMENT: VILLES VS. CALL OF DUTY AND WARCRAFT • • Although core franchises such as Call of Duty and Warcraft are played for longer durations, Zynga’s Ville games are played 4x more frequently. Zynga takes advantage of users’ frequent sessions by constantly serving up marketing messages to drive engagement, cross-promotions of its other games, and transactions. Franchise Playtime Behavior 8 6 4 2 0 Average # of Sessions a Day 120 100 80 60 40 20 0 Average Session Length (Minutes) 300 250 200 150 100 50 0 Average Time Played in a Day (Minutes) Ville Games Call of Duty Warcraft 6
Slide 7: CONVERSIONS: ZYNGA GAMES COMPETE WITH TOP CORE FRANCHISES % Conversion From the Previous Hottest Game in the Series 100% 80% 60% 40% • In conversions from one game to another within a franchise, Zynga’s three-year-old Ville brands are comparable to established franchises such as Call of Duty. 20% 0% • Even though Zynga’s user size per game is at least 5x bigger than core games, it’s able to grab an equal proportion of users from game to game. 7
Slide 8: Zynga’s dominance in the top 10 social games 8
Slide 9: PLAYTIME: ZYNGA DOMINATES THE TOP SOCIAL GAME PUBLISHERS • In total online playtime since 2008, Zynga's top titles racked up 3x more hours than the rest of the top 10 combined. The Top 10 Social Games by Playtime Share EA/PopCap (Bejeweled Blitz), 10% Zynga (FarmVille, Café World, CityVille, FrontierVille, Texas Hold'em Poker), 75% Digital Chocolate (Millionaire City), 5% Kabam (Kingdoms of Camelot), 5% Wooga Kixeye (Backyard Monsters), 2% 9 (Monster World), 3%
Slide 10: Overview of Zynga’s increasingly engaged and loyal players 10
Slide 11: CONVERSIONS: ZYNGA HAS ONE OF THE INDUSTRY’S HIGHEST CONVERSION RATES FROM GAME TO GAME % of Players That Play Another Zynga Game 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% • • Zynga’s user base is largely comprised of loyal players. For its last four games (FrontierVille, Treasure Isle, CityVille, and Empires & Allies) Zynga has pulled 90+% from its existing user base. 11
Slide 12: PLAYER ENGAGEMENT: ZYNGA’S VILLE GAMES ARE BECOMING MORE AND MORE ENGAGING Time Played Per Session in the First Month of Release 8 7 6 5 4 3 2 1 0 • Since the launch of YoVille in 2008, Zynga’s Ville games have almost doubled in average session length (as measured one month after launch). Zynga is able to drive deeper engagement per game by investing in game design talent from key competitors and constantly improving on core game formulas with each new iteration. Minutes • 12
Slide 13: PLAYER BEHAVIOR: HOW ZYNGA’S TOP 8 GAMES ARE PLAYED TODAY Playtime Data by Release Date Average time played per user in the last… Release Year Day (hours) Week (hours) Month (hours) Average session length (minutes) # of sessions (day) # of sessions (Week) # of sessions (Month) Mafia Wars 2008 0.54 1.32 1.95 Texas Hold'em Poker 2009 0.88 2.16 4.08 FarmVille 2009 0.56 1.48 2.65 Café World 2009 0.88 2.44 4.18 Frontier- Treasure Empires CityVille Ville Isle & Allies 2010 0.74 1.72 3.14 Average 2010 0.39 0.94 1.56 2010 0.68 1.71 2.74 2011 0.84 2.24 3.9 0.69 1.75 3.0 4.8 7 17 24 5.4 10 24 45 3.6 9 25 44 6.6 8 22 38 4.2 11 25 45 4.8 5 12 20 5.4 8 19 30 4.8 11 28 49 4.95 8 21 37 • The average session lengths of Zynga’s games are around five minutes and reflect the company’s strategy of limiting gameplay to short stints of activity with frequent reengagement. 13
Slide 14: The crossover of players between Zynga and core games 14
Slide 15: SOCIAL AND CORE CROSSOVER: ZYNGA VS. THE TOP PC GAMES • Of the top PC games listed below, between 12-20% of players for each game have played Zynga’s most popular title, CityVille. % of Players That Have Played CityVille 20% 16% 12% 8% 4% 0% World of Warcraft StarCraft 2 League of MapleStory Lord of the Call of Legends Rings Duty: Black Online Ops 15
Slide 16: SOCIAL AND CONSOLE CROSSOVER: ZYNGA GAMES ARE CAPTURING MORE CONSOLE GAMERS Total Xbox 360 Players 100% 80% 60% 40% 20% 0% 2010 • 2011 Xbox 360 Only Also Play Zynga Games The percentage of Xbox 360 players that have played a Zynga game has increased to 30% in 2011, which is a 50% improvement from the year before. 16
Slide 17: Implications of Zynga’s most active players, the “Two-Percenters,” and how they contribute to Zynga’s success 17
Slide 18: ZYNGA’S “TWO-PERCENTERS”: ITS MOST ACTIVE PLAYERS • The top 2% of loyal players (who consistently play 3x more than the average player) are crucial to Zynga’s success. This includes the company’s “whales” – its biggest spenders. Given that gameplay sessions are purposely limited, the “Two-Percenters” are only able to extend their gameplay by buying playtime through microtransactions and/or earning more playtime by actively encouraging their friends to play. • Zynga’s Most Active Players: The “Two-Percenters” Total Time a Zynga “Two-Percenter” plays: Total Time an Average Zynga Player Plays: 120 40 Minutes per day Minutes per day 18
Slide 19: KEY FINDINGS • • In the past few years, Zynga’s per-title playtime has grown to rival core games and exceed its social-game competitors. Zynga’s conversion rates consistently top 90% – among the highest in the industry. The company knows how to keep customers happy and coming back for each new game. Zynga has shaped and built the social gaming space. Competitors – both social and core – face significant challenges as they contest Zynga’s market position. With Zynga’s “Two-Percenters,” five million of its 250 million user base are either spending money or actively encouraging friends to play Zynga games. As Zynga expands its game portfolio and drives engagement in an evolving, vibrant ecosystem, its dominance in the social gaming space will continue to set the standard. • • • Questions: Contact us at Raptr-Reports@Raptr.com. 19
Slide 20: RAPTR METHODOLOGY This report is based on data collected from Raptr’s service, available at www.Raptr.com. Raptr is the leading social network for gamers and currently tracks gameplay activity for over 10 million users across PC, Xbox 360, and PS3. This Raptr Report analyzes actual gameplay data for the following Zynga games: Empires & Allies, CityVille, Treasure Isle, FrontierVille, Café World, FarmVille, Texas Hold’em Poker, PetVille, YoVille, and Mafia Wars. Data is compiled from the launch of Raptr to August 2011. 20
Slide 21: ABOUT RAPTR Raptr is the award-winning service that provides gamers a way to track their gameplay activity on console and PC. Over 10 million gamers use Raptr as a central location to connect with both friends and the games they play. Raptr was founded in 2007 by Xfire co-founder and world champion gamer Dennis “Thresh” Fong, and is made up of both experienced entrepreneurs and talented developers (ex-Google, Yahoo, eBay, etc.). The company has raised over $27 million in venture capital funding from Accel Partners (the same original investors in Facebook), DAG Ventures, and Tenaya Capital. Today, Raptr has expanded to include a host of features that cater to gamers: • • • • • • • Automatic gameplay and achievements tracker on PC, Xbox 360, and PS3 Personalized news feed Community-curated content Recommendations engine to help gamers discover new games Centralized buddy list and friend tracker In-game chat and web browsing for PC games iPhone app with friend tracking and messaging For business inquiries, please contact us at Raptr-Reports@Raptr.com. 21