Social media gaming giant Zynga went public in 2011 and in the months following saw moderate success. But just 1 day after Facebook went public, everything changed for Zynga. In the 24hrs following Facebook filing for its IPO and after investors learned that Facebook’s payment revenues climbed 20% quarter over quarter, Zynga saw its market cap raise over $1 billion in a just one day. Zynga’s market cap rose from $7.4 billion to $8.66 billion.

Facebook’s IPO boosted Zynga’s market cap for 2 reasons: Facebook and Zynga are locked into a contract until 2015 and 93% of Zynga’s payment revenue comes from Facebook. Investors believe that if Facebook payment revenues continue to grow, so to will Zynga’s payment revenues.

MARKETING TAKEAWAY

Social media PPC marketing can be beneficial for your business if used the correct way. Zynga has seen an increase of users on Facebook over the last quarter, that could translate to increased time on Facebook, therefore increasing your company’s exposure through Facebook PPC advertising.

Has your company been debating social media pay-per-click? Have you tried social media PPC before, only to have it fail? Talk with JASE today and let us help you get the most out of your social media PPC campaign. As always, please feel free to share this with friends.

Zynga Social Gamingimage credit: ftchris on flickr

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