Advertising to play key role in King.com's $500M IPO
- King.com, makers of the popular mobile game Candy Crush, filed for a $500 million IPO Tuesday.
- The company revealed that only 1% of its $1.9 billion in revenue came from advertisers last year, but the company does rely heavily on advertising itself to drive revenue. The company spent $367.9 million on sales and marketing in 2013.
- The bulk of future revenue for King.com will rely on persuading current and new users to buy in-game products, which means more advertising.
It seems odd that a game as popular as Candy Crush wouldn't be pulling in major ad dollars. That fact may point at how far in-app ads still have to come to be recognized as a valuable and viable mobile ad option. With the company also looking at advertising as a means to sell in-game products, it wouldn't surprise us at all to see major brands jump on board and pay to have that content branded. Such approaches have already been used extensively in other digital gaming arenas, like Sony's PlayStation Home.
- Advertising Age - Digital How Advertising Drove King.com's $500 Million IPO