Giving a speech today in Londons Tower Bridge Hotel as part of the Social Games & Virtual Goods World 2011 conference, Joe Chen, CEO of RenRen, spoke of the difference of approach his company has taken when compared to its American equivalent, Facebook.
Rather than take the 'credits' approach and seek to turn social gaming into a revenue generator for the social network via virtual good purchases, RenRen takes the opposite approach.
"We turn the table," Chen stated. "Facebook looks at [social games] as primarily to make money. We dont do that."
More than credits
Instead the company heavily promotes what it sees as 'high quality social games' such as Popcaps Plants Vs. Zombies Social with traditional and modern advertising techniques such as 'zombie flash mobs' in major pedestrian areas in cities across the country.
This active participation in promoting its service's games is a stark contrast to Facebooks hands-off approach as laid out by the European Head of Gaming Partnerships Julien Codorniou at the Social Gaming Summit last month, in which the company stressed that it was "never going to be in games ourselves" nor "invest in gaming companies".
Instead, RenRen which hosts Happy Farm, the social farming game that inspired FarmVille sees social gaming as "definitely the future", but doesn't see ARPU as important a barometer.
"We make more money with brands than virtual goods," he said.
Advertising channel
Chen revealed that unique conditions present in China more specifically the level of piracy when it comes to big brand names has led to this alternative balancing of revenue generation when compared to its American rival.
He attributed some of RenRen's success in becoming the leading 'real name' social network in China to the company's early adoption of smartphones when the market was still in its early stages, saying that he expected penetration of the device in China to continue growing at a tremendous rate.
News
Will's obsession with gaming started off with sketching Laser Squad levels on pads of paper, but recently grew into violently shouting "Tango Down!" at random strangers on the street. He now directs that positive energy into his writing (due in no small part to a binding court order).
Related Articles
Top Stories
Feature
Apr 25th, 2024
"Gaming in MENA is just starting. Investment will bring more attention to the region and create more opportunities"
Feature
Apr 24th, 2024
48 top mobile games in soft launch: Squad Busters, CSR 3, Plants vs. Zombies 3, LEGO Hill Climb Adventures, and more
Events
Esports Future Summit | Middle East | Apr 27th |
Dubai GameExpo Summit 2024 | Middle East | May 1st |
The MENA Games Industry Awards 2024 | Middle East | May 2nd |
GameDev Atlantic 2024 | May 4th | |
Mobidictum Meetup Berlin May 2024 | Europe | May 7th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Israel Mobile Summit 2024 | Middle East | Jun 6th |
DevGAMM Vilnius 2024 | Europe | Jun 14th |
Popular Stories
News
Apr 23rd, 2024
Supercell’s Squad Busters soft launches today with over 100,000 Google Play downloads
Feature
Apr 24th, 2024