WTF is Intrinsic In-game Advertising? In a world where gamers are constantly bombarded with intrusive ads, Frameplay is here to save the day with intrinsic in-game advertising! With
their clever approach, ads seamlessly blend into the gaming experience, creating an environment where players can enjoy their favorite games without feeling like they're being sold something. It's a win-win situation for gamers and advertisers alike, and with Frameplay leading the charge, it looks like the future of in-game advertising is going to be pretty game-changing!
In recent years, video games have become increasingly popular, with millions of people around the world actively engaging in virtual spaces. As the number of active video gamers worldwide is predicted to exceed 3.2 billion
by 2023, the opportunities for marketers to reach customers through intrinsic in-game advertising are seemingly endless. But what exactly is intrinsic in-game advertising, and why has it become such an important part of the gaming industry? Intrinsic advertising is the process of blending real-world ad experiences into a virtual environment. Instead of interrupting the player’s gaming
experience with pop-up ads or banners, intrinsic ads feel natural to the experience. For example, you might see a billboard along a street in a game landscape or a KFC restaurant in the fictionalized city of San Francisco in an arcade game. One of the leading firms in the intrinsic in-game advertising space is Frameplay. They provide game developers with the monetization opportunity to
display in-game ads without interfering with the gamer’s experience. Combined with Kochava measurement and attribution solutions, creating a Frameplay ad campaign has proven to be a successful marketing medium for many advertisers. But what makes intrinsic ads so special, and why are they preferred by gamers? According to a survey by Frameplay, intrinsic ads are viewed more fondly by gamers
and are possibly more effective than interstitial ads. They found that one-in-three gamers say that ads “negatively impact their experience,” and interstitial ads were the second most disliked. By contrast, intrinsic ads feel natural to the gameplay and enhance the gamer's experience, making them more likely to incite action and generate positive brand association. Intrinsic advertising is a
form of in-game advertising that appears naturally within the game environment, rather than interrupting gameplay with banner ads or interstitial advertising. The IAB Gaming and Esports Advertising Framework notes that intrinsic in-game advertising offers a seamless experience for players and can be used to deliver ads that are more effective and engaging than traditional advertising formats. Cary Tilds, the Chief Strategy & Operations Officer at Frameplay, explains that the company’s platform enables game developers to place impactful advertising within video game environments without disrupting the gameplay performance or experience. The result is amplified brand exposure for advertisers, additional revenue for developers, and an enjoyable, uninterrupted experience for gamers. One of the main differences between intrinsic advertising and other forms of advertising is that the ads are "in the game," making them a seamless part of the gameplay environment. This makes them more effective than ads that are "next to the game" or "around the game." According to a report by Frameplay, intrinsic ads are viewed more fondly by gamers and
are possibly more effective than interstitial ads. The report found that one-in-three gamers say that ads “negatively impact their experience,” and interstitial ads were the second most disliked. By contrast, intrinsic ads feel natural to the gameplay and enhance the gamer's experience, making them more likely to incite action and generate positive brand association. Frameplay’s Intrinsic
Time-in-View attention metric is an intrinsic in-game viewability duration metric that offers valuable insights to brands and developers using intrinsic in-game ads. It is a way to measure how much time players spend actively engaging with the ads. This metric is up and running well before the newly released IAB intrinsic in-game measurement guidelines 2.0, which Frameplay contributed to. This sentiment is echoed by industry experts. According to Jonathon Troughton, CEO of the in-game advertising company Frameplay, “Intrinsic ads feel natural to the gameplay, and they don't disrupt the experience. This creates an environment where the gamer is more likely to engage with the ads and to associate them with a positive experience.” But not all intrinsic
ads are created equal. Some game studios have taken a more immersive approach, integrating brands into game worlds in more meaningful ways. This has led to a growing tension in the world of gaming advertising, with stakeholders divided into two camps: those porting programmatic adtech into games via intrinsic in-game ads and those integrating brands into more immersive gaming experiences. While some executives in the space share Epic Games CEO Tim Sweeney's dislike for in-game billboards, many believe that both approaches have their place in the world of gaming advertising. For intrinsic in-game ad companies, the challenge is to make their programmatic ads as seamless and natural as brand integrations in Fortnite and Roblox. If they can succeed in securing premium console inventory, particularly in sports and lifestyle games, they may be able to compete
more effectively with immersive brand experiences. However, the tension between these two forms of in-game advertising is unlikely to disappear anytime soon. As gaming continues to evolve and new technologies emerge, the future of intrinsic in-game advertising remains uncertain. But for now, it continues to offer an exciting and innovative way for marketers to reach customers as they explore
virtual spaces. According to Malph Minns, managing director of the agency Strive Sponsorship, “Intrinsic in-game advertising has a lot of potential for brands to reach gamers in a natural and engaging way. As the gaming industry continues to grow, we can expect to see more and more opportunities for brands to integrate themselves into the virtual worlds that gamers love.” So why should brands consider intrinsic in-game advertising? The benefits are clear: intrinsic ads are less intrusive, feel more natural to the player's experience, and can enhance the gamer's experience. They can also make a game world seem more realistic and are constantly viewed by a player during the normal course of gameplay. By blending real-world ad experiences into a virtual environment,
intrinsic in-game advertising can create a sense of familiarity and authenticity, helping brands build stronger connections with their target audience. As the gaming industry continues to evolve, it's likely that we'll see more innovative approaches to intrinsic in-game advertising, from dynamic product placement to interactive branded mini-games. However, for brands looking to capitalize on
this exciting new marketing medium, it's important to work with experienced partners who understand the unique challenges of the gaming industry. As education about intrinsic advertising continues to grow, it is expected that more agencies will start to focus on the opportunity. Companies such as dentsu Gaming, Publicis Play, and IPG Media Lab Gaming have already begun creating unique
capabilities for advertising in games. The industry will need to rethink planning and buying tools to categorize gaming correctly in the context of other opportunities. Whether you're looking to create an immersive branded experience or simply integrate your brand into the virtual world, there's never been a better time to explore the possibilities of intrinsic in-game advertising. As
the gaming industry continues to grow and evolve, so too will the opportunities for brands to connect with their target audience in new and exciting ways. |
All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
The latest quarterly earnings report from Google shows that while search revenues increased by 2%, YouTube revenues dropped nearly 3%. This has raised concerns about Google's future, as it faces pressure from Microsoft and potential search volume and revenue losses to its competitor. However, Google's earnings
still surpassed analyst predictions, and YouTube Shorts are getting 50 billion daily views, up from 30 billion last year. Microsoft, on the other hand, has seen a 3.4% increase in search and ad revenues, and a 7.6% increase in LinkedIn revenue, thanks in part to acquiring Xandr. Bing now has 100 million daily users and has seen an increase in downloads since adding AI features. Spotify's monthly active users grew 22% YoY, reaching 515 million listeners at the end of last month. While ad revenue
grew 17% YoY, it dropped 27% compared to the previous quarter, and the number of paying subscribers also dropped to 40%. However, this presents an opportunity for marketers, as the growing listener base combined with Spotify's podcast ads and self-serve ads is good news for marketers, especially since 46% of podcast listeners tune in at least once a week. Azerion, a digital entertainment and media platform, has released its annual report and audited financial results for the full year 2022. The report can be found on their website. Azerion serves consumers, digital publishers, advertisers, and game creators globally by providing technology solutions to automate the purchase and sale of digital advertising. The platform is content-driven and uses technology and data to drive engagement, loyalty, and e-commerce. Founded in
2014, Azerion has experienced rapid expansion through organic growth and strategic acquisitions. The company is headquartered in Amsterdam, the Netherlands and is publicly traded on Euronext Amsterda Yahoo has acquired Wagr, a sports betting app, for an undisclosed sum. The acquisition will help Yahoo develop the next generation of its
sports gaming portfolio, according to Jim Lanzone, CEO of Yahoo. Wagr will be integrated into Yahoo Sports, and its innovative emphasis on community and social engagement in sports gaming was cited as one of the reasons for the acquisition. Wagr received investments from entities including Seven Seven Six, Greycroft, Pear VC, the Kraft Group, Harris Blitzer Sports & Entertainment, and BITKRAFT Ventures. Women's sports are gaining momentum in the media world as the 2023 Women's World Cup is expected to be worth over $300 million in its next media rights deal, making it the most expensive women's tournament ever. Inspired by the 1.12 billion viewers for the 2019 edition across all platforms, FIFA has started to look into the value of the Women's World Cup as a separate property from its
male counterpart. Similarly, the NCAA Division I women's basketball tournament is also facing the same situation, with a potential value of between $81 million and $112 million annually in 2025, according to media rights consultants. B2B marketing budgets have increased slightly in 2023, but personnel
cutbacks have impacted several areas, with 66% of marketers reporting burnout, according to a study by Integrate. Only 11% of US respondents are significantly expanding budgets from 2022, and 45% say their main challenge is using data to inform decisions and/or measure marketing performance. Areas negatively affected by budget/hiring changes include content creation/strategy, customer marketing, and field/event marketing, while companies are investing in marketing ops/technology,
customer marketing, product marketing/strategy, and sales enablement. The main areas of marketing investment are content marketing strategy, customer marketing, and marketing ops/technology, with 68% reporting meeting or exceeding growth targets. Ad spend on retail media sites slowed down in Q1 2023 compared to the holiday quarter, with a
9.5% decline in sponsored ad spend. However, Pacvue's data report showed a decrease in cost-per-click (CPC) for Sponsored Product and Sponsored Brands ads, with click-through rates holding steady or increasing. The report also revealed category trends, with the Beauty & Personal Care category seeing a decrease in spend and CPC, but an increase in return on ad spend (ROAS) for Sponsored Products. The Pet Supplies category saw an increase in spend and CPCs for Sponsored Products but a
decrease in ROAS. Adaptive streaming company SeenThis and technology company Lumen conducted a study which found that SeenThis's streaming video ads generated higher attention and more positive responses compared to conventional technology. The study showed that 80% of ads using SeenThis technology grabbed attention compared to less
than half when using conventional technology, and 78% of ads powered by SeenThis technology were 'technically viewable' compared to only two thirds with conventional technology. The study highlights the benefits of SeenThis's faster and more impactful viewer experience, which optimises for display and minimises data transfer. |
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DON’T BE A COOKIE MONSTER: HOW FIRST-PARTY DATA IS ALREADY WINNING IN MARKETING Third-party cookies are like that clingy ex who just won't leave you alone. It's time to break up
and move on to something better. Enter first-party data: the reliable, trustworthy partner that actually understands you and your needs. Say goodbye to cookies and hello to a better, more fulfilling marketing relationship. READ ENTIRE
STORY
EPIC GAMES’ VISION OF THE METAVERSE: AN OPEN AND INTEROPERABLE ECOSYSTEM The concept of the metaverse has been around for decades, but it wasn’t until recently that it gained mainstream attention. With the rise of multiplayer games, social networks, and virtual worlds, the metaverse has become a real possibility. Epic Games, the developer behind Fortnite, is one of the companies leading the charge towards this vision. In a recent interview
with GamesBeat, Tim Sweeney, CEO of Epic Games, talked about the company’s vision of the metaverse and how they plan to make it a reality. “The metaverse is the multiplayer aspect, the meaningful social play, the meaningful choices and meaningful participation,” said Sweeney. “It’s not owned by these institutions that make you play what they want you to play.”. READ MORE OF THIS STORY
LIES, DAMN LIES, AND ADVERTISEMENTS: FTC SENDS
WARNING TO GWYNETH PALTROWThe Federal Trade Commission (FTC) has issued a warning to advertisers, urging them to back up their product claims or face steep civil penalties. In notices sent to 670 companies, the FTC stated that companies are required to provide “reliable evidence” to back up their product claims, a requirement that has been in place for some time. However, many advertisers continue to make
unsupported statements and false claims about the evidence they have.. READ THE FULL ARTICLE
COLLABORATION IS KEY: UNLOCKING THE POTENTIAL OF FIRST- AND SECOND-PARTY DATA
STRATEGIES The age of relying on third-party data for media buying may be coming to a close, but don't count out the power of collaboration just yet. Data clean rooms (DCRs) have emerged as a popular avenue for brands to uncover valuable insights, but they're not the end-all-be-all solution to marketing strategies in the face of a looming recession. While a DCR can help match audiences and allow brands to... READ MORE
DAVE MORGAN’S CRYSTAL BALL: HOW NETFLIX’S AD TIER WILL SHAPE THE VIDEO AD
LANDSCAPE As Netflix dives into the realm of ad-supported streaming, it’s clear that the video advertising landscape is about to experience a seismic shift. With the streaming giant making its move, we sat down with Dave Morgan, CEO of Simulmedia, to discuss how Netflix’s new tier will impact the industry and what it means for advertisers,
long-form video content, and the advertising world at large. In light of the tough ad economy in 2023, Morgan believes that Netflix’s ad-supported tier is well-positioned to succeed. “It still has limited inventory as the ad tier just begins to scale. Thus, it doesn’t need huge
commitments from advertisers, just modest commitments from a number of the top brand advertisers, and it doesn’t need to trade piercing for volume like fully scaled players need to when budgets are under pressure,” he says. READ MORE
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