The Hidden Multimillion Advertising Challenge

21st February 2017
AUTHOR: Kingston Lee-Young


Over the last decade gaming has become the number one international contact sport, that’s growing exponentially. Nearly two-thirds of Australians play games and are online for longer periods of time. Professional ‘gamers’ play for money through internet forums and virtual communities.

Gaming is the running of an application to play a game on your PC, laptop or smart device, or by downloading an App, or by using an Xbox or Playstation console. The level of detail allows gamers to enter another universe, where they’re engaged in sights, sounds and stories. Gamers become emotionally invested. They play multiple times, at home, on the move and with global competitors.

 

Who are Gamers?

Most think a gamer is an awkward kid playing their Xbox or Playstation with a friend in their bedroom. That perception is incorrect. The average gamer is 33 years old who plays digital games over the web with millions of people globally. Approximately 1m Australians are gamers and 47% are females. None of which are restricted to where or how they play because of smart devices.

 

Why it Pays to Play

In the 2016 Newzoo Global Games Report, $99.6bn (+8.5% YOY) is spent on gaming worldwide, with nearly $47bn (+10.7YOY) in Australasia. It’s expected the global gaming market will reach $118.6 billion by 2019.

There’s definitely a massive growth with games being used in education and health sectors to improve thinking (89%), mental stimulation (76%) and positive ageing (76%). These figures reveal that gaming will increase year on year because it’s growing into other sectors. It also means there’s an obvious gap in the ‘in game’ sector for potential marketing opportunities.

 

What’s In Game Advertising?

In game advertising allows brands to feature their name or products digitally. Dynamic in game advertising can be placed on large billboards, banners and cars within the game. Or alternatively advertising may be placed as part of the experience in console integrations. For example, when the gamer clicks on an advertising tile, it brings the user to a custom virtual environment.

 

So What?

It’s simple. Gaming can earn brands a fortune. The average session time is 30 –50 minutes. Compare this with an average news website, where 80% of visitors view the site for less than 5 minutes.

To help you further, here’s an excellent example of the potential brand reach:

A Netherlands e-Sports gaming competition had 50,000 attendees pay 30 Euros each to watch live from a film studio. The online transition component converted to approximately 50m people watching globally. Competitors were teams of 5-6 gamers each competing to win the first prize of $6.3m.

Reflect on this for a minute. Imagine the advertising opportunities your brand could have with this competition?

With gaming players being emotionally invested, they tend to play several times a day, sometimes multiple games with people all over the world and even on the move using Apps on their smart devices. The opportunity lies in tapping into these consumers through these daily touch-points with advertising content they’ll engage with in the same way.

Using a free mobile game for advertising is a great way forward. It’s commonly understood to have the ‘most downloaded’ hits that extend on to other entertainment formats. In-gaming will play brand advertising at the start, so players have to engage with the content. The IAB research has indicated that 75% of gamers accept advertising for free Apps or online games. This provides marketing opportunities for brands to act now and reap the rewards.

You can also acquire insights from location data to add the geographical dimension to consumer trends and patterns. When you make sense of the location data the advertiser can derive actionable insights to reach consumers in real-time to drive your marketing strategies and lift sales.

Even Will Ferrell has caught on to the idea of gaming. In his latest movie (title still to be released) Will plays a member of a pro gaming team who is super old. Gamers are usually no more older than their mid 20s. The film includes appearances by two actual professional gaming teams, the Evil Geniuses and Fnatic.

 

Games Deliver ROI for Brand Advertising

Traditional advertising channels are being disrupted by changing audience habits. Millennials have dual screen practices, where they spend time on smart devices while simultaneously watching TV or listening to radio or podcasts. Essentially gaming sites are producing higher engagement rates than any other entertainment sites, because gamers are more engaged and have a strong sense of loyalty to individual games or sites. This creates a powerful proposition for your brand looking to engage target audiences, for longer periods of time.