That’s the finding in our latest Social Times PRO report which analyzes the current state of the Facebook Credits ecosystem. While the company continues to build out the Credits platform and expand the service to smaller developers, the vast majority of large game developers have now switched exclusively to using Facebook Credits.
While Credits could eventually become a much larger business as the virtual goods ecosystem explodes, Facebook is currently focused on increasing distribution of Credits in order to increase the number of users who are involved in virtual goods transactions. Over the past few months Facebook has forged a number of agreements to increase the reach of Facebook Credits, however the company has yet to determine how effective the new Credits partnerships (and free Facebook credits giveaways) have performed.
It’s not surprising that Facebook has become so focused on social games given that the majority of virtual goods transactions take place within games for the time being. Over the coming months we would expect Facebook to make credits an increasing component of the overall Facebook experience in an effort to increase transaction volume and the active Credits consumer base. One thing is increasingly obvious: Facebook Credits is a very long-term play.
While $300 million is a significant chunk of revenue, it’s a fraction of the advertising revenue that Facebook will generate next year (which may very well be in the $3 billion range). Facebook is hoping to make Credits a much larger component of the global virtual goods ecosystem however which means they most likely see this as a multi-billion dollar play. For the time being, in comparison to advertising, Credits will appear to be a small business for Facebook. However things could change as the company ramps up Credits activity over the coming months.
For our entire take on the current Facebook Credits ecosystem, including developers thoughts and more, you can go check out the Social Times PRO report.