Tencent Virtual Goods Revenues Continue to Grow in Q1 2009

tencentWhile virtual goods draw around $200 million in the United States, the overall value is dwarfed by the Asian market, which is 25 times larger at $5 billion. And of course, of the most successful Asian companies monetizing through virtual goods transactions is Tencent. This publicly-traded Chinese company has been pulling in millions despite the global recession. Its last statement put total revenues at $366.4 million for Q1 of 2009.

Counting just virtual goods, Tencent saw its web-based merchandise increase approximately 28 percent quarter-over-quarter and 90 percent year-over-year to $278 million.

The company states that the increase in virtual goods revenue was due primarily to the “seasonal impact of the Chinese New year holidays and winter break for students.”

Virtual goods are not expensive, with many ranging from 10 cents to $1. For players of social and online games, they are often impulse buys, much like a Snickers bar in the check-out line. That impulse, however, adds up rather quickly when you have billions of people buying them.

Tencent also makes revenue from mobile virtual goods sales and advertisements. Mobile virtual goods sales grew by 10 percent quarter-over-quarter and 52 percent year-over-year, totaling $64 million. Ad revenue suffered, however. In quarter-over-quarter revenue, ads dropped by 30 percent to $21 million.

The company earned $1 billion last year ($719 million from virtual goods).

Strategic Mobile Marketing

Mediabistro Course

Strategic Mobile Marketing

On October 21. work with the digital strategy director for Saatchi & Saatchi to develop a marketing strategy for smartphones, tablets, and mobile devices! You’ll learn how to optimize content for mobile, create responsive landing pages, and track all mobile efforts. Register now!

 

Leave a Reply

Get the latest news in your inbox
interested in advertising with inside social games?

Social Media Jobs
of the Day

Social Media Account Manager for Beauty PR Agency

Creative Media Marketing
New York, NY

SEO Specialist

Creative Circle
Atlanta, GA

Vice President, Social

Start-Up Social Media Firm w/ Established Clients
New York, NY

Communications Coordinator

National Science Teachers Association
Arlington, VA

Community Editor

Chalkbeat
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us