More fallout from the media backlash surrounding the performance-based ads that social gaming companies like Zynga have been using to monetize their games. Zynga CEO Mark Pincus said that the company will be removing “all CPA [cost-per-action] offers” from its games until further notice. This comes after Facebook banned Fishville—one of Zynga’s newest games —after finding that it was serving users ads that violated the social’s nets terms and conditions.
TechCrunch reports that FishVille’s ads were deceptive because they don’t clearly explain that to “complete” the offer (and get virtual coins in the game), users need to subscribe to a $10-$20 monthly mobile service; the ads also don’t ask users to opt-in to supplying their personal information. While MySpace formally updated its ad policies with regards to these kinds of in-game ads, Facebook kept mum. The FishVille ban seems to be a more definitive response to all the negative press.
For Zynga, the Facebook ban is a big problem—the company can’t monetize F