Inside Social Games

Facebook app analytics shop Developer Analytics released a report today detailing what it’s calling the “Top 20 Facebook Apps by Monetization Potential.” While the calculations are estimates based on data points from developers, panels, and surveys, they do illustrate that social games possess many of the measurable characteristics required to monetize apps well on social networks.

What was the methodology? Developer Analytics says, “Monetization potential is calculated based on five trend equations derived from hundreds of real CPM, and CPA/Virtual Goods revenue data points collected directly from developers and partners. The five equations relate revenue to total daily unique users, return users, churn rate, application age, and daily page multiplier (impressions/unique user/day).” However, DA caveats, “We currently have not implemented our system for tracking average time by hour spent on an app per user per day, so highly engaging flash games… have heavily underestimated monetization potentials.”

Games included in the top 20 are Mob Wars (which DA says could make $20k/day), PackRat (which only has 20k DAU), Friends For Sale, (Lil) Green Patch, Pet Pupz, and Parking Wars.

DA is very excited about Mob Wars, and with good reason – the game has a ton of highly engaged users that last a long time. One thing we do know is that, like many of the great social games of our time, Mob Wars is monetizing through a virtual currency system with incentivized CPA offers via Offerpal Media and Super Rewards.

Whether the coefficients in DA’s algorithms are right remains to be seen, but one thing is clear – you can make great returns with well tuned social games on Facebook.