Zynga 2012 Annual Report Download - page 12

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April 2007 and completed our initial public offering in December 2011, and our Class A common stock is listed
on the NASDAQ Global Select Market under the symbol “ZNGA.” As of December 31, 2012, we had 3,058 full-
time employees.
Our Social Games
We design our social games to provide players with shared experiences that surprise and delight them. Our
social games leverage the global connectivity and distribution on Facebook, other social networks, mobile
platforms and the With Friends Network, including Zynga.com. Our games are generally free to play, span a
number of genres and attract a community of players that is demographically and geographically diverse. We
operate our games as live services and update them with fresh content and new features to make them more
social, enhance player engagement and improve monetization. We analyze the data generated by our players’
game play and social interactions to guide the creation of new content and features. We use this ongoing
feedback loop to keep our games compelling and enhance the player experience.
We believe expanding our offerings across several game genres is critical to our success. We will invest in
several game categories, including the following:
•Invest & Express.Represented by our market-leading web games such as FarmVille,CityVille,
FarmVille 2, ChefVille and CastleVille, these games allow our players to express their personalities by
customizing the appearances of their characters and building their own virtual city, farm, restaurant or
castle.
•Casino.Zynga Poker was our first social game and is the largest free-to-play online poker game in the
world; we plan to continue our investment in this category.
•Casual.Includes some of our most popular titles like Words With Friends, Scramble With Friends,
Draw Something and Bubble Safari, these games provide chances for friendly competition and allow
our players to quickly connect with friends and family when they start a game and to build and enhance
these relationships throughout the game experience.
•Midcore Player versus Player.We began our investment in this category with the launch of Mafia
Wars in June 2008 and have continued that investment with the launch of Ayakashi in 2012 along with
recently published games including Horn and Respawnables.
We generate revenue from the following online services:
Virtual Goods and Paid Downloads
Our primary revenue source is the sale of virtual currency that players use to buy in-game virtual goods.
Virtual currency can also be earned for free through game play or by accepting promotional offers from our
advertising partners. We also generate revenue when players purchase mobile game downloads.
Advertising
Our advertising services offer creative ways for marketers and advertisers to reach and engage with our
players. The goal of our engagement-based advertising is to enhance the player experience while delivering real
value to advertisers. Our advertising offerings include:
•Branded Virtual Goods and Sponsorships that integrate advertising within game play;
•Engagement Ads and Offers in which players can answer certain questions, watch-to-earn engagements
or sign up for third party services to receive virtual currency;
•Mobile Ads through ad-supported free versions of our mobile games, such as Words with Friends;
4