I wrote for Naavik about Zynga’s acquisition of ad tech company Chartboost. Read the full article here.
Why I wrote about this
When the news came of the Chartboost deal, it was quite natural for me to write about it as a natural continuation to the previous Zynga piece I wrote some months ago.
The gist of it
Zynga reported $680M in Q1 revenue, up 68% year-over-year and above guidance. However, most of that growth was inorganic, largely attributable to the Peak Games acquisition in 2020. Operationally, the quarter was relatively steady: the live portfolio held up, Harry Potter: Puzzles & Spells performed well, and newer titles like Puzzle Combat had yet to materially move the needle.
However, the headline event wasn’t the numbers: it was Zynga’s acquisition of Chartboost for $250 million. As privacy regulations tighten and access to device identifiers becomes more limited, owning ad tech infrastructure has become increasingly valuable. Bringing ad mediation, supply-side, and demand-side capabilities in-house improves measurement, strengthens cross-promotion across a large portfolio, and reduces reliance on third parties.
Chartboost’s strength in casual puzzle and social casino advertising makes it a natural strategic fit. Zynga’s revenue is heavily concentrated in puzzle and casino titles, with the majority of IAP revenue coming from a handful of top-performing games in those genres. This deal continues a broader consolidation trend in mobile, where scale and vertical integration are becoming competitive necessities.
Key takeaways
- Zynga’s revenue growth in Q1 2021 was strong but primarily acquisition-driven.
- The Chartboost deal is strategically more important than the quarterly results.
- In a post-IDFA world, owning ad tech improves measurement and cross-promotion efficiency.
- Chartboost’s genre strength aligns tightly with Zynga’s puzzle and casino focus.
- Mobile ecosystem consolidation is accelerating as scale advantages increase.