Archive for February, 2012

Dear Zynga, Markpincus.com is expired

The CEO of the social gaming giant has had a placeholder Web site for years. Now the registration has expired, and Zynga risks embarrassment–and danger–from losing the domain.

Markpincus.com expired on February 9. Will Zynga renew it before someone else gets their hands on the domain?

(Credit:
Screenshot by CNET)

We all know that controlling your brand is crucial, especially in big business. You can’t afford to let someone else get ahold of your name, and in the Internet era, that means keeping your Web site locked down, far from anyone else’s reach.

Zynga CEO Mark Pincus

(Credit:
Zynga)

So it was quite a surprise to me when I found out today, via the Twitter feed of the great game designer Brenda Brathwaite, that Zyngo CEO Mark Pincus could be in real danger of losing Markpincus.com.

According to a Whois search, the URL expired on February 9. And while registrars usually give domain owners a bit of a grace period before putting the address back up for grabs, it’s pretty clear that absent some quick action, Zynga could soon be facing a major egg-in-the-face moment.

After all, I can think of a million anti-Zynga game designers, porn sites, pranksters, hackers, and others who would love to get their hands on Markpincus.com. Zynga’s lawyers could probably make a decent case that the URL belongs to the company, or to Pincus personally. But if it took them some time to re-possess it, that could no doubt give a bad actor time to do something quite unfriendly to the company.

The Whois record showing the current status of markpincus.com, which expired on Feb. 9, 2012.

(Credit:
Screenshot by CNET)

“Doing business on the Web has become an important, if not essential channel for many businesses around the world, and Web sites are identified with their owners in large part due to the domain name used by the owner,” reads a primer on the value of owning valuable domain real estate on Cybersquatting.com “As a result, obtaining a domain name that is closely associated with a business is very important for most ventures.

“In addition to identifying the owner of the domain name and the source of goods sold through a domain name, domain names can become brands themselves. Even the most generic and descriptive domain names, like Pets.com (used on a website selling pet supplies) and Claus.com (used on a Santa Claus-related website), can become brands due to their use in the marketplace and the meaning consumers attach to these descriptive domain names. As a result, acquiring premiere domain names that contain simple descriptive words and phrases is important for many companies in building their online brand.”

From a PR perspective, it’s also crucial to maintain control of your domain. According to Julie Crabill, CEO of the technology public relations agency Inner Circle Labs, it’s essential. “Fully controlling your company and personal story is no longer possible but when you have a polarizing brand and/or personality, it behooves you to look for obvious chinks in your armor that Web trolls can use against you,” Crabill said. “Everywhere I go in the Valley, people have something to say about Mark Pincus. If I was Zynga I would do everything I could to retain ownership of Markpincus.com to make sure it doesn’t fall into the hands of someone with more nefarious purposes.”

For now, Zynga and Pincus are still in safe territory. According to Go Daddy, which was used to register the domain–presumably by Pincus or someone working with him–registrants have at least 25 days from the time their domain expires before it goes back up for grabs. However, it appears that after 25 days, the expired domain goes up for auction.

Zynga could not immediately reached for comment.

In the meantime, Zynga might also want to run over and buy Markpincus.net, Markpincus.co, and Markpincus.org, which are all available. But they shouldn’t bother going for Markpincus.xxx. That one is already taken.

Big Ten chat wrap

We had the Leap Day version of the Big Ten chat earlier today, and it was a mostly constructive one. Here’s a full transcript.

Not surprisingly, there were several questions about my story on the Big Ten’s limited history of African-American football coaches.

While I expected a lot of criticism for this piece, I think most folks are missing the point and not reading the entire story. I don’t think the Big Ten is racist. I think the athletic directors look for the best candidates and, for the most part, consider African-American coaches, who have, no matter what you think you know, faced an uphill climb to get these high-profile, highly visible jobs. I think the league’s participation in the minority coaches forum is terrific.

It’s noteworthy, however, that as the numbers of African-American football coaches increase nationally — because they’re qualified, not because they fill a quota — we haven’t seen any in the Big Ten. That doesn’t mean we won’t soon, as the story points out. But one African-American coach has been hired in the Big Ten in the past 20 years. That’s unusual, given the recent surge.

To say Big Ten teams are always hiring the best coaches is absurd. While some teams have landed their first choices, others have not. And there have been several bad hires in this league. Minnesota AD Joel Maturi practically admitted to me he should have hired Charlie Strong rather than Tim Brewster — not because Strong is African-American, but because he has turned out to be a better coach. And for those of you who think African-American coaches don’t face resistance because of their skin color, look at Strong. He should have had an FBS job at least two years earlier than he did.

It’s also absurd to ignore the pool of qualified African-American coaching candidates has grown substantially in recent years. Why else would we see the hiring numbers increase nationally?

Many of you are appalled or disgusted with my story. That’s fine. But it’s an issue worth raising because of the national trend, and it’s one I’ll continue to monitor going forward.

Some highlights from the chat:

Dan from Springfield, Ohio: Adam, Who do you see making the biggest splash as a freshman in the B1G this coming year? Also who do you think will be named preseason Offensive and Defensive POY?

Adam Rittenberg: Dan, I think Noah Spence has a chance to help Ohio State immediately. Spence and Adolphus Washington should get playing time right away as freshmen. Montee Ball is a lock for preseason Offensive Player of the Year. The preseason Defensive POY will be more interesting because of all the player departures around the conference. Ohio State’s John Simon would be a candidate. So would Penn State’s Gerald Hodges. And I think Michigan State’s Will Gholston deserves consideration.

Frank from Galveston: After saying he wasn’t leaving, Nebraska secondary coach Corey Raymond goes to LSU which leaves Bo Pelini with a huge hole to fill. How will coach Raymond’s departure affect Nebraska?

Adam Rittenberg: Frank, the timing is unfortunate, and there could be an impact in recruiting, but the long-term effects should be minimal. Bo Pelini knows how to coach defensive backs, and he’ll find a good replacement for Raymond. Pelini’s track record of producing NFL-quality DBs should be enough of a selling point for Nebraska to overcome Raymond’s departure rather easily.

Randy from Michigan: Adam, do you think that Junior Hemmingway can make an impact in the NFL? I personally thought that he carried the team on his shoulders when they needed him the most (look at the Sugar Bowl). He has the ability to make catches in traffic, even when he is well defended. Does this counteract the 0.2 or whatever, that he is behind some other good receivers in the 40 yard dash?

Adam Rittenberg: Randy, I absolutely think Hemingway can be a good pro receiver. Look at how he produced when healthy at Michigan. Look at how he finished his career at the Sugar Bowl. And look at how he performed at the combine. The guy has momentum right now, and he’s showing just how effective he can be. While he likely won’t be picked that high, I think a team can get a great value in Hemingway.

Matt from DC: To follow up: Obviously you are dead right about the SEC being the biggest obstacle because of their proximity to the bowl sites but I just don?t see how any school?s fan base, unless a blue blood like UT, OU, UM, OSU, USC, PSU, could travel to neutral sites two times in a couple of weeks. What conference would agree to let their team in a four team playoff play at neutral sites where the breakdown is 70-30 against them in the first semi?

Adam Rittenberg: Good points here, Matt. The hard part is that the regional sites would have to be assigned well in advance because of planning purposes. It would be impossible to decide to play a neutral site game in Indianapolis or Atlanta or Detroit two weeks before the game. The commissioners could assign these sites in advance and then have the higher-seeded teams play closer to home, but like you say, it would still be tough for fans.

Thanks again for the questions. I’ll be on vacation in early March, so our next chat takes place March 21.

A Chat With Yuwadee Chirathivat

Yuwadee Chirathivat

By Ron Gluckman

Thailand’s Yuwadee Chirathivat has guided Central ­Department Store to leadership in a society where shopping is, well, central. A mother of three, she became president of Central in 1996, 15 years after she joined the family firm. Launched by her grandfather 65 years ago with a single general store, Central has three store brands, and Yuwadee runs the namesake as well as the chic Zen chain. She took Central overseas in 2010 with the first of three stores in China and plans more expansion there and around Asia.

FORBES ASIA: Central has a strong lead over all competitors. What gives you your greatest advantages?

YC: Our history and our good retail experience are clear advantages. While we’re a family-run business, we operate with the right professionals handling the right jobs. Of course, a family business means there’s a strong sense of continuity. Having a real estate division, our sister company, CPN [Central Pattana Public], has advantages because we are able to identify good locations and build our businesses on these sites. Our competitors mostly lease their land. Our stores are mainly on our land. But our biggest advantage is our customer base, which we have developed over a long time. We have very loyal customers, with about 2 million loyalty card members [“The One Card”]. Over 80% of our sales come from these loyalty card members.

Power Womensee photosREUTERS/Crack Palinggi

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Thailand has been battered by political turmoil and natural disasters. How has this affected retail growth?

Our year-on-year growth for 2011 was 3.5%, and same-store growth was 17%. As you can see, we grew. These figures are significant also because of the close of Zen department store for one year [after a fire in street riots in 2010] and Central Ladprao for six months [for major renovation]. Yes, political upheavals and natural calamities do affect us, but we continue to work hard to maintain our sales targets.

Where do you see growth opportunities?

There are Central stores in Chiang Mai, Hat Yai, Pattaya and Phuket, besides Bangkok. We have identified the north, the northeast and the south as good growth areas. In the next five years there will be more Central stores in these regions. We look to open 25,000-square-meter stores, with all the Central services. We made the decision to expand to China in 2008 and opened our first store in 2010. We now have three stores, a Central and a Zen in Shenyang and a Central in Hangzhou. It has been hard, but we are determined to succeed in China. We are going to be there for the long haul. We used to plan more aggressively, thinking maybe we would open three stores a year. We found the market very competitive, so are moving more cautiously. We are looking at first- and second-tier cities and maybe will open one to two stores per year. But we will continue to expand in China, and we’re looking at other countries, especially in Southeast Asia. Places like Malaysia, Indonesia and Vietnam.

What’s the role of businesswomen in Asia today?

To me women in business, regardless of the place they do business in, lead very demanding lives. I admire how so many women balance the roles they have to play in business and at home. It may sound like the same rallying call among successful businesswomen, but it is true that we are rarely one person in any given profession. We are usually business executive, wife, mother and daughter all rolled into one.

What advice would you give?

A Chat with Thailand's Yuwadee Chirathivat

ForbesWoman

Thailand’s Yuwadee Chirathivat has guided Central ­Department Store to leadership in a society where shopping is, well, central. A mother of three, she became president of Central in 1996, 15 years after she joined the family firm. Launched by her grandfather 65 years ago with a single general store, Central has three store brands, and Yuwadee runs the namesake as well as the chic Zen chain. She took Central overseas in 2010 with the first of three stores in China and plans more expansion there and around Asia.

Forbes asia: Central has a strong lead over all competitors. What gives you your greatest advantages?

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YC: Our history and our good retail experience are clear advantages. While we’re a family-run business, we operate with the right professionals handling the right jobs. Of course, a family business means there’s a strong sense of continuity. Having a real estate division, our sister company, CPN [Central Pattana Public], has advantages because we are able to identify good locations and build our businesses on these sites. Our competitors mostly lease their land. Our stores are mainly on our land. But our biggest advantage is our customer base, which we have developed over a long time. We have very loyal customers, with about 2 million loyalty card members [“The One Card”]. Over 80% of our sales come from these loyalty card members.

Thailand has been battered by political turmoil and natural disasters. How has this affected retail growth?

Our year-on-year growth for 2011 was 3.5%, and same-store growth was 17%. As you can see, we grew. These figures are significant also because of the close of Zen department store for one year [after a fire in street riots in 2010] and Central Ladprao for six months [for major renovation]. Yes, political upheavals and natural calamities do affect us, but we continue to work hard to maintain our sales targets.

Where do you see growth opportunities?

There are Central stores in Chiang Mai, Hat Yai, Pattaya and Phuket, besides Bangkok. We have identified the north, the northeast and the south as good growth areas. In the next five years there will be more Central stores in these regions. We look to open 25,000-square-meter stores, with all the Central services. We made the decision to expand to China in 2008 and opened our first store in 2010. We now have three stores, a Central and a Zen in Shenyang and a Central in Hangzhou. It has been hard, but we are determined to succeed in China. We are going to be there for the long haul. We used to plan more aggressively, thinking maybe we would open three stores a year. We found the market very competitive, so are moving more cautiously. We are looking at first- and second-tier cities and maybe will open one to two stores per year. But we will continue to expand in China, and we’re looking at other countries, especially in Southeast Asia. Places like Malaysia, Indonesia and Vietnam.

What’s the role of businesswomen in Asia today?

To me women in business, regardless of the place they do business in, lead very demanding lives. I admire how so many women balance the roles they have to play in business and at home. It may sound like the same rallying call among successful businesswomen, but it is true that we are rarely one person in any given profession. We are usually business executive, wife, mother and daughter all rolled into one.

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Senators target Facebook with bill that would close stock-option loophole

Facebook anticipates its deduction will be so large that it will wipe out the company’s tax obligations for all of 2011, according to the firm’s regulatory filing for its initial public offering. The company also expects to get as much as $500 million in refunds applied to the taxes it paid over the last two years.

All of this is legal. Under current law, companies can take a deduction when employees cash in stock options. The thinking is that compensating employees with stock options is an expense for companies that the government wants to offset.

Levin and Conrad argue that companies are being allowed to save more than is fair. When they report this expense to Uncle Sam, firms claim a deduction equal to the market value of the shares. But when they report the cost of these options to their shareholders, they use the amount employees paid for the shares — typically far less.

“The books show a highly profitable company — profitable, in part, because of the relatively small expense the company shows on its books for the stock options it grants to its employees,” the senators said in a statement. “But when it comes time to pay taxes, to pay Uncle Sam, the loophole in the tax code allows the company to take a tax deduction for a far larger expense than they show on their books.”

For instance, Facebook founder Mark Zuckerberg paid six cents for each of his 120 million shares. When he exercises those options, they are expected to be worth $40.

Using the higher share price in its tax bill calculations will yield the company big savings, as much as $3 billion, some analysts estimate.

Facebook declined to comment.

Levin and Conrad want to change the law so that companies cannot claim tax deductions valued at more than what they report to shareholders. There would also be a $1 million cap on deductions related to stock options, the same limit that applies to other kinds of executive compensation.

The proposed change would bring more than $20 billion in revenues, according to the Joint Committee on Taxation.

There is some dispute over whether companies should be allowed to claim deductions for stock options at all. Robert McIntyre, director of Citizens for Tax Justice, says the options should not be counted as an expense because they don’t cost the companies any cash. McIntyre argues that Facebook should not be allowed to tell the Internal Revenue Service that it faced an expense in the stock offering and then receive a large tax refund.

The company says in its filings that all 187 million of the company’s vested options will be exercised. With some analysts estimating that the share price will be roughly $40, the company could claim $7.5 billion in deductions. Based on state and federal tax rates, that would translate into $3 billion in savings.

The proposal on the Hill comes as the White House and Republican presidential candidates present dueling ideas for how to reform the corporate tax code, which is widely considered to contain too many loopholes.

President Obama has said he wants to lower the corporate rate from 35 to 28 percent and eliminate many tax breaks for industries. Mitt Romney, the GOP’s leading presidential candidate, has proposed a rate of 25 percent.

Facebook Updates Signal More Change Ahead for Marketers

At a major event today in New York, Facebook unveiled new updates and advertising offerings designed to help brands spread their message on the world’s largest online social network. Coinciding with the event, they introduced a new, more visually appealing Page format incorporating Timeline, as well as a number of new ad formats, including mobile.

Beyond the product news, Facebook had a clear call-to-action for Madison Avenue: it’s time to move on from advertisements to storytelling. Or better yet, stories that get people talking and sharing as much as possible. Even content that’s conversation itself, literally social by design.

Hearing the keynotes first-hand, I had some immediate reaction to what this all means – both for social marketing today and longer-term trends these moves may lead to. Here are some take-aways leaders should keep in mind.

1.  Understand shifts in how we consume media.

TiVo’s impact on media and advertising will pale in comparison to what we’ll see from Facebook and other social players. We’ve moved from a set-time, to time-shift, to now more socially driven tune-in. The more something is buzzed, linked and shared the better chance views, ratings and value of the content will follow. Facebook is creating a more dynamic environment for social tune-in, sharing and interactions around content to happen – whether it comes from big media, brands or emerging players vying for our attention.

2. Accelerate the move to ongoing vs. episodic programs.

Creative and content development can’t be separate practices from ongoing community management if Facebook’s vision plays out. To build and sustain relationships through social media storytelling and community interaction can’t be episodic acts, executed exclusively for new products and campaigns. Brands need persistent presence. The ways brands can now sustain it on Facebook has been improved – both in the way presence can be compellingly presented as well as means to stay visible through follower networks.

3. Elevate community management and creativity of content that supports it.

With Facebook Pages being a new “brand canvas” stakes are raised on the role and output of community managers. Content created and shared by them – brand updates, offers, polls, links and interactions – are now source material for Facebook’s new ad units. As part of the new advertising suite, paid content can now be embedded in news feeds, creating opportunity for conversational ads, promotions and offers to have much wider distribution.

4. Understand content will be limited without paid distribution.

Maximizing distribution and community development absent of paid media will be a major challenge. Facebook is now shifting focus to quality and reach of engagement over amassing followers, reinforced by new units that allow a greater share of followers to see and share content produced. Paid, earned and owned media strategy must come together as one.

5. Recognize fundamental versus incremental change needed to build a social brand.

Facebook pledges to help advertisers by making ads more prominent

Facebook Inc. has begun pitching itself to Madison Avenue with a splashy campaign worthy of fictional adman Don Draper.

At its first annual marketing conference in New York, Facebook executives pledged to raise the visibility of the world’s biggest brands on the social network with more prominent ads on desktops and — for the first time — on mobile devices that will be much tougher for users to tune out.

For Facebook users and their friends, it will mean seeing messages and offers from brands they have “liked” such as Ben Jerry’s, Starbucks and Wal-Mart sprinkled into status updates from friends.

The rare East Coast appearance came as Facebook prepares an initial public offering that is expected to be the largest for a U.S. Internet company, sending an unmistakable signal that Facebook is ready to make serious money from online advertising.

“This is where Madison Avenue lives. It’s a stake in the ground,” Altimeter Group analyst Rebecca Lieb said.

The coming-out party at the American Museum of Natural History drew hundreds of big-name marketers from such companies as Proctor Gamble and Nestle. They were served red velvet cupcakes and cocktails, watched singer Alicia Keys perform and heard Facebook’s chief operating officer, Sheryl Sandberg, say that they will be given a much greater presence on the site.

“If we’re going to make marketing truly social, it won’t be us,” Sandberg told the crowd. “It’s going to be you.”

Marketers said it was the message they wanted to hear. Facebook has tantalized Madison Avenue with its vast hoard of personal information on its users. Facebook doesn’t have to guess who its users are or what they like. Facebook knows because users share this information freely. But Facebook Chief Executive Mark Zuckerberg has said he views Facebook more as a way to connect people than as a business and has been reluctant to flood the site with ads.

“This event was targeted squarely at the big-brand advertisers, the kinds of companies that spend millions of dollars a year on online advertising, and Facebook wants to get more of that money,” EMarketer analyst Debra Aho Williamson said.

Facebook, which is in the federally mandated quiet period, sidestepped any mention of the IPO, which will probably take place this spring. But the IPO was the elephant in the room as Facebook comes under increasing pressure to show investors it can fire up its online advertising business to justify a valuation that some say could top $100 billion.

Facebook made 85% of its $3.71 billion in revenue last year from online ads. Ad sales rose 69% to $3.15 billion last year, according to the company’s IPO filing. Revenue grew as the number of ads Facebook showed users increased 42% and the average price per ad increased 18%.

Many brands already advertise on the site, but Facebook will have to turn more brands into paying customers before it can tout itself as a top destination for large advertisers.

Facebook rolled out new ways for advertisers to reach its 845 million users, showing off redesigned Timeline pages that marketers can use to promote their brands to fans and their friends and new ads that pop up on the home page, News Feed, the log-out screen, and on smartphones and tablets. More than 425 million users access Facebook through mobile devices. Some 37 million people log out of the social network every day.

Facebook executives said advertisers would have much the same ability to interact with users as users have to interact with one another, turning ads into “stories” that have the look and feel of the rest of Facebook.

Most of the new features will be available to marketers in March. For example, Paramount Pictures plans to promote the re-release of “Titanic” in 3-D with a video trailer that will jump from its Facebook page to the right-hand side of users’ pages to the News Feed and to the log-out screen, giving Paramount plenty of opportunity to engage with its 17 million “Titanic” fans and their 700 million friends.

Facebook plans to roll out the ads slowly and get feedback from users. At first, Facebook users may see just one message from a brand they are connected to each day in the News Feed.

Analysts expect brands that for years have set up shop on Facebook for free to experiment with buying the new ads.

“I still have questions whether advertisers are going to want to pay up for all of these features. I think they will experiment with them, but I think it’s going to come down to results,” Williamson said. “If they don’t see results, ultimately these new ads won’t improve Facebook’s bottom line.”

jessica.guynn@latimes.com

Simple Cooking: Chocolate Chip Cookies with Orange and Walnut


Classic chocolate chip cookies are a year-round favorite, but here’s a fun way to give them a citrusy, wintery kick: add orange zest and walnuts. The key to getting that perfectly chewy, soft cookie is to work with butter that is at the right temperature. Butter that is too cold or too warm will flatten out, burn cookie bottoms, and do other funny things in the oven.

Chicagoist’s Chocolate Chip Cookies with Orange and Walnut
Makes about 18-24 Cookies

Ingredients
1/2 cup (1 stick) unsalted butter, slightly colder than room temperature (should feel cool, but not cold, to the touch)
Zest of 1 large orange
1/3 cup white sugar
1/3 cup packed brown sugar
1 egg
1 teaspoon vanilla extract
Juice of 1 large orange
1 1/3 cups flour
1 teaspoon baking soda
1 teaspoon salt
1 ½ cups semi sweet or milk chocolate chips (your preference)
1 cup walnuts, chopped, plus extras for topping

Directions
Preheat the oven to 350.

Using a stand or hand mixer, beat the butter until it’s fluffy. Add the white sugar, brown sugar, and orange zest and beat on high again until thoroughly combined.

Add the egg, vanilla, and orange juice and beat until blended. Sift the flour, baking soda and salt into the bowl. Mix on low speed just until dough forms. The dough should be sticky and a little firm. If yours is too liquid, add Tablespoons of flour at a time to stiffen it up a little. Stir in the chocolate chips and walnuts.

Using a tablespoon, drop spoonfuls of dough onto greased or parchment-paper lined cookie sheets. Top each mound of dough with a large walnut piece. Bake until the cookies are golden, 12-15 minutes (exact time will depend on your oven). Take the cookies out a few minutes earlier if you like them really chewy.

Transfer the cookies to racks to cool. Eat. Repeat.

Girl Scout cookies make annual reappearance

The cookies have arrived.

The orders are in, and the door-to-door delivery of Girl Scout cookies is well under way. However, for those who did not preorder a package of Thin Mints, Do-Si-Dos or Samoas Caramel Delights, they only have to patronize one of the many county retailers where the girls have set up shop.

“All the booths have been very busy, so it’s working out well,” Jessamine County Girl Scouts service unit manager Debbie Smith said. “Most of the troops have had to reorder cookies from our pantry so they have enough for their next booth.”

Cookie booths can be found at Walmart; Kroger stores on Brannon Crossing, South Main Street and Bellerive Boulevard; Sam’s Club; Southern States; Lowe’s; and IGA in Wilmore.

Unfortunately, the economy and a low Girl Scout membership has hurt the organization this year, but Smith said sales did not suffer as much as expected.

“Normally, we have anywhere from 1,800 to 2,000 cases ordered to come into Jessamine County,” she said. “And this year we only ordered 1,380 cases, which is 12 boxes of cookies per case, which is less than normal. 

“However, the girls have been having to order more from the pantry in Lexington to keep up with demand and keep their booths stocked.”

Currently, there are 128 registered Girl Scouts in Jessamine County with an overall goal to sell 120 boxes per girl, or 10 cases apiece — a total of 15,360 cases in all, said Kim Wade, public relations manger.
Wade is a troop leader of 10 Brownies, including her own daughter.

“What has been so wonderful in this experience is at this level (second- and third-graders), they’re still learning to count money and give change,” Wade said. “People who are buying the cookies are really patient and making it a pleasant experience for them, and they’re learning so much at the same time. 
“Even when people say ‘no,’ they’re really nice about it.”

The price per package is $3.50 with local Girl Scout troops retaining 50 cents for each box of cookies sold.

Wade said most of the troops are using their money to send the girls to special badge-earning events or towards the many other expenses of maintaining a troop.

“Jessamine County has a lot of girls who want to be Girl Scouts,” Wade said. “And we don’t want to leave anybody out, so every box counts.”

The 2012 sales began in January and will run through March.

“Sometimes parents want more cookies, even though they preordered,” Smith said. “But we can get more.”

According to Smith, a lot of people buy several cases of cookies and freeze them in order to preserve them through the months until the next Girl Scout cookie sale.

“They can be frozen for up to a year,” Smith said, “and they’re still as good as ever.”

Zynga’s Source of Revenue Not Sustainable, says Morning Star

Social gaming has changed the way we entertain ourselves, pay for that entertainment and socialize around it.  Zynga’s been a clear winner in the social gaming arena, but is their monetization a sustainable effort?  Not really, says Morning Star.  According to their recent report,  Zynga’s source of revenue is likely to also become its breaking point.

The social gaming titan has two sources of income: ads and virtual goods. However, with a free-to-play business model, less than 2 percent of the players actually represents 90 percent of the company’s revenue. In order to reduce risk, Zynga needs to introduce new games to high spenders. Only 2.9 million gamers paid for virtual goods in Q4 2011, which is only 1.6 percent of Zynga’s total unique players.

Moreover, while cross-promotion is working pretty well for Zynga right now, it may not be sustainable in the long run either. They have marketed a great deal of new games already, and “there’s a limit to how this marketing activity can scale,” says Morning Star. It won’t be an easy feat to reprise the viral marketing success that Zynga achieved on Facebook in the mobile scene.

Nevertheless, Zynga still stands as the largest social media gaming company on the largest social networking site in the world, with 5 times as many daily users than the its closest competitor. Social games are also an effective and deliver a cheaper marketing channel to drive adoption of new game titles, which is essential in keeping Zynga’s income flowing.

“The company estimates that the average gameplay is eight to 25 months, highlighting the need for the company to continue creating new games that are interesting to customers. Without a constant flow of stimulating games and stifled marketing efforts, it will be harder to justify more capital investments.”

Despite Zynga’s potential obstacles in staying fresh for mobile, social gaming’s monetization models are on the rise.  Spil Games’ 2011 State of Gaming Review released last month revealed that those who play free-to-play games actually end up spending $60 a month on micro-transaction to enhance gaming experience, with US players as the most active in online gaming.

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