• by Mark Walsh  @markfwal, May 27, 2011

The $10 billion private valuation of FarmVille-maker Zynga and mounting anticipation over the company's expected IPO filing is testament to the sizzle that surrounds social gaming. But even with a whopping 250 million people playing casual games a month, a new Forrester report finds U.S. marketers aren't trying to capitalize on the craze.

The vast majority -- 84% -- have no plans to use games in their U.S. marketing strategies in the next year, and only 19% believe games will become more effecting marketing vehicles in the next three years. Forrester views this as a missed opportunity and advises advertisers to begin testing in-game marketing efforts to tap into the millions of engaged consumers.

In addition to sheer scale, the report notes the gaming audience offers attractive demographics and characteristics. Women make up 59% of adult social gamers, and mothers are more likely than average to be gamers. The gaming population also spans many age groups among adults of both sexes, with Gen X players accounting for the single biggest segment: 30%.

People who play social games are also active social networkers and more likely to be receptive to advertising in social media. In that vein, more than one-third of adult gamers spend more time connecting with friends on social networks than in person, and almost half communicate more on social sites than via instant messaging or email.

How can marketers get in the game? The report suggests focusing on casual games from established developers, such as CrowdStar, Electronic Arts-owned Playfish, and, of course, Zynga, which have a combined user base of almost 60 million.

When it comes to tactics, offering in-game currency in return for taking a survey or signing up for service is one common marketing approach. "This option is the best choice for marketers focused on direct response, as some offers require subscribing to a service," states the report authored by Forrester analyst Elizabeth Shaw Smith.

In CityVille, for example, Discover offers 720 City Cash currency to those who apply and are approved for its Discover More Card, while Netflix offers 176 City Cash to new subscribers. Other ad options include virtual in-game billboards and branded virtual goods. Cascadian Farm, for instance, sold more than 500 million virtual organic blueberries in FarmVille, increasing unaided brand awareness more than fivefold, according to Zynga.

Companies including McDonalds' and Farmer's Insurance have also advertised via FarmVille.

At the high end, companies can also create their own games. But Forrester warns this is a costly and risky move. There is no guarantee the new game will catch on with consumers. One success it points to in this area is ESPN's partnership with Playdom to create ESPNU College Town, where players build a campus, affiliate with a real school, and take on other players in basketball or football.

A well-known sports-related brand like ESPN has a leg up in developing its own game, especially when it can work with Playdom, a sister Disney company.

One factor holding marketers back is the need for advertisers to become better educated about this emerging ad category, according to Shiv Singh, head of digital, PepsiCo Beverages, which has used social gaming in campaigns for Pepsi, Mountain Dew and other brands.

Another is that budgets don't necessarily keep pace with the ever-increasing number of ways people consume media. "Marketers still have to make choices, because it's not like everyone's moved out of TV or other facets of digital. These are all laid on top. So it's a matter of knowing what works for your business and what's appropriate for your brand," he said.

To that end, Forrester recommends first determining what type of audience you're trying to reach before settling on a certain tactic. That means targeting according to game topic and the specific demographics for a given title.

Choosing relevant metrics to gauge campaign success is another key step before plunging in. "For social games, developers and third parties are currently tracking metrics, such as fans, click-throughs, time spent, site visits, brand awareness and purchase intent," according to the study. Then marketers can decide whether the results are worth the investment.