According to a report by Park Associates, online gaming in the US is even more popular than all those “Web 2.0” websites that the mass media see as the be all and end all of the internet.

James Kuai, analyst at Park Associates, informed that, “despite the growing popularity of YouTube, MySpace, and Facebook, gaming remains the king of online entertainment, driven largely by casual gaming activities.”

Research shows that while 19 per cent of US internet users we’re interested in social networking, a hefty 34 per cent play games online. With this information now handy, advertisers are surely going to be much more interested in working within the games industry than simply spreading adverts around popular social networking sites. Plus, gaming has the advantage of monthly subscription payments.

Kuai agrees, saying, “Gaming also has business advantages. Unlike sites for social networking and video streaming, which rely solely on advertising revenue, casual gaming has more mature and heterogeneous revenue models, including web-based and in-game advertising, try-before-you-buy, subscriptions, and micro-transactions.

However, year-on-year growth rates show that one particular website has the potential to overtake gaming. Despite the 79 per cent rise in online gamers, video sharing site YouTube jumped up a huge 123 per cent. The industry better not rest on its laurels.