The Battle for Gamers' Attention: Exploring the Growth of Advertising in Video Games
Video games, mate, dey don turn into advertisin' playgrounds.
Gamers dey see ads for dey games, but e dey important make e no spoil de fun. Advertisers don begin dey blend ads wit gameplay, so e go feel natural. Some gamers like am wella, dey see am as support for game developers and cheap way to play. But others dey give side-eye to ads, dem no want anytin wey go disturb dem play or spoil de artistic touch. Advertisers go get sense, no dey force ads wey no make sense. Privacy and data protection dey also important, make dem take permission before dem
gather gamer info.
In recent years, the gaming industry has witnessed a significant growth in advertising as brands recognize the immense potential of reaching a captive audience within the gaming ecosystem. From programmatic in-game ads to
immersive brand integrations, marketers are vying for gamers' attention and competing for a share of the gaming advertising budget. This article delves into the nuances of video game advertising, exploring the different types of ads, their impact on gamers, and the evolving landscape of advertising in video games.
When we think of video game advertising, virtual billboards within game worlds often come to mind. However, the scope of advertising
opportunities in video games goes beyond simple billboards. Intrinsic in-game ads encompass branded assets and environments, such as Gatorade coolers on the sidelines of basketball games or Balenciaga's branded experiences in Fortnite. These ads can be static or dynamic, with static placements hardcoded into the game and dynamic ones that can be customized or updated.
Apart from ads within the game world, there are ads encountered outside the gameplay
itself. Around-the-game ads include display ads in start or pause menus, interstitial pre-roll, and mid-roll video formats. While interstitial ads may disrupt immersion, rewarded ads, such as rewarded videos, are highly popular among gamers. These ads provide in-game rewards, such as power-ups or extra lives, in exchange for watching an ad. Gamers prefer opt-in rewarded ads over mandatory ones, leading to increased engagement and impressions.
To tap into
the gaming community, brands are venturing beyond the game itself. Esports sponsorships, influencer marketing, and advertising on streaming platforms, podcasts, and social media offer additional avenues to reach gamers. However, it is essential for brands to respect gamers' spaces and be mindful of their passion for gaming when implementing influencer marketing strategies.
While the concept of the metaverse is still emerging, video games have long provided
immersive experiences akin to the metaverse. In these virtual worlds, brands have the opportunity to integrate seamlessly into the gameplay, enhancing the overall gaming experience. However, such integrations require careful planning, ongoing development, and updates, making scaling a challenge.
Programmatic in-game ad infrastructure is still in its nascent stage, and most ad placements are currently sold via private marketplace deals. Dynamic in-game ads
are on the rise but remain a small portion of the video game ad market. Concerns over brand safety and the perception of violent video games often hinder brands from embracing programmatic video game advertising fully. However, the market is evolving, and brands are gradually exploring new opportunities.
In addition to advertising, video games generate revenue through in-app microtransactions and the sale of virtual goods. Microtransactions, commonly found
in mobile, console, and PC games, provide players with alternate outfits, playable maps, or in-game equipment. Advergames, explicitly designed to promote a brand, have also gained popularity, offering engaging experiences tailored to the brand's messaging.
Intrinsic advertising, despite its association with game immersion, has been found to be less intrusive and better received by players. Companies specializing in intrinsic advertising are working to make
programmatic ads as seamless and natural as brand integrations in the game. By incorporating ads organically into the game's narrative, environment, or gameplay mechanics, advertisers can strike a balance between monetization and preserving the immersive gaming experience.
The impact of advertising on gamers can vary. Some gamers readily accept and even appreciate well-integrated ads that enhance the realism of game worlds or provide in-game benefits. They see ads as a way to support
game developers and enjoy free or lower-cost gaming experiences. Additionally, ads can add an extra layer of authenticity to sports games by featuring real-world brands and sponsors. On the other hand, some gamers are more skeptical of advertising in games. They express concerns about intrusive ads disrupting immersion, interrupting gameplay, or compromising the artistic integrity of the game. Gamers are particularly sensitive
to ads that feel forced, irrelevant, or overly frequent. Advertisers must tread carefully to ensure their ads are respectful of the gaming experience and provide value to gamers.
As advertising in video games evolves, ethical considerations regarding privacy, data collection, and targeting become increasingly important. Advertisers must prioritize transparent practices and obtain appropriate user consent when collecting and utilizing gamer data for targeted ads. Striking a balance between
effective targeting and respect for privacy is crucial to maintaining trust and fostering a positive relationship between advertisers and gamers.
Looking ahead, the future of video game advertising holds exciting prospects. As technology advances, virtual reality (VR) and augmented reality (AR) gaming experiences open up new frontiers for advertising. Brands can immerse gamers in interactive and highly personalized ad experiences, creating deeper connections and engagement. The metaverse, a shared virtual space where users interact with each other and digital content, is also set to revolutionize video game advertising. Brands can establish a presence in the metaverse, integrating their products, services, and experiences seamlessly into the virtual world. This presents an opportunity for immersive and meaningful brand interactions within gaming environments. Furthermore, the continued growth of esports and live streaming platforms offers brands new avenues for advertising and sponsorships. As competitive gaming gains mainstream popularity, marketers can tap into the vast esports audience and connect with gamers through partnerships, branded tournaments, and influencer collaborations. |
All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
The Digital Voice™, a B2B AdTech PR agency, hit the jackpot in the industry awards, achieving a double victory. They were crowned TITAN PR Team of the Year, impressing judges with their offbeat and bold approach, while their CEO and Founder, Julia Linehan, claimed the prestigious Female Executive of the Year
- PR and Communications title. With revenues skyrocketing by 154% and their team doubling in size, The Digital Voice™ has firmly established itself as a force to be reckoned with in the adtech and martech world. The icing on the cake came when they landed 7th place in the global Fast Movers list and secured the 2nd spot among the UK's fastest growing agencies. With their fresh and edgy marketing approach, this remote team of strategic thinkers and PR veterans is definitely making some
noise.
In the rapidly expanding world of e-commerce, vendors need to shift their marketing efforts from traditional physical stores to create a personalized experience in a mobile-first environment. With the rise of online shopping, understanding and catering to different customer interests is crucial. One-size-fits-all approaches won't cut it anymore. To stand out, sellers must grasp their audiences and tailor strategies across digital
channels while maintaining a strong overall web presence. Efficiency is key, and while third-party platforms like Amazon, Etsy, and Instagram can be useful, relying solely on them risks losing control and visibility. By keeping their websites at the center of operations and using social platforms as auxiliary tools, brands can maintain control and adapt to changing trends. Trial and error are inevitable, and embracing adaptability is vital. Analyzing data-driven insights, experimenting
consistently, and trusting intuition can help sellers respond to shifting demands. Different platforms have unique nuances, and sellers must develop a customized approach for each. Instagram and Twitter have different content preferences, while TikTok and Instagram Reels favor short videos. By accounting for these nuances, adapting strategies, and utilizing data, vendors can create effective digital selling strategies, foster customer relationships, and achieve sustainable growth in the
ever-evolving e-commerce landscape.
Federal Trade Commission Chair Lina Khan reminded businesses involved in the rapid growth of artificial intelligence that they are not exempt from existing laws protecting against fraud. During a presentation, Khan emphasized the need for companies to ensure compliance with the law despite the novelty of AI technology. She specifically addressed the concerns surrounding generative AI, which has
sparked fears of replicating human behavior and fraudulent activities. The FTC is particularly worried about dominant market players using their position to stifle competition. Under Khan's leadership, the FTC has been actively holding Big Tech accountable and investigating areas such as consumer purchasing incentives and market competition. Khan also stressed the importance of data security and proactive measures to protect customer data, encouraging companies to adopt best practices and hold
executives accountable for data breaches. While she supports a federal privacy law, Khan commended individual states' efforts in safeguarding consumer data, suggesting that any federal law should establish a baseline rather than restrict states' existing protections.
At WWDC 2023, Apple unveiled updates to Safari, making it the first browser to lock browser windows, block trackers, and remove URL trackers, enhancing privacy but potentially
making it more challenging to track links. Safari was also announced as the world's fastest browser. For developers, Apple introduced APIs across platforms, enabling them to build more innovations into apps. Additionally, Apple's Vision Pro headset may pave the way for augmented reality (AR) ads in the future, allowing users to visualize products in their surroundings. However, specific changes in advertising are yet to be determined, and we may have to wait until next year for more
developments.
In a conversation with Zak Kirchner, Head of Global Consumer Brand Research at Pinterest, the need for increased emotional intelligence and neurodiversity to drive brand growth was discussed. Pinterest adopts a sophisticated and individualized approach to insights, focusing on understanding Pinner behavior and building nourishing experiences based on
audience needs. They leverage first-party data, survey data, qualitative research, and social listening to identify trends and points of tension. The conversation also emphasized the importance of reimagining traditional segmentation, going beyond demographics, and integrating segmentations into ongoing research plans. The discussion touched upon the positive outcomes of interacting with inspirational content on Pinterest and the significance of emotional intelligence in building brands. In
terms of neurodiversity and inclusion, Pinterest promotes an inside/out model, creating an inclusive culture that allows individuals to be open about their unique traits and strengths. Kirchner shared his personal experience with ADHD, highlighting how embracing neurodiversity can lead to enhanced productivity and effectiveness. The conversation emphasized the importance of creating work environments where neurodiverse individuals can thrive.
Ben & Jerry's has announced that it will no longer purchase paid advertising on Twitter due to an increase in hate speech on the platform. The company is urging its business partners to follow suit. They express concern not only about hate speech from users but also about the speech of Twitter's owner, Elon Musk, accusing him of promoting dangerous lies and white nationalist hate speech. Ben & Jerry's refers to
Twitter as a threatening and dangerous place for various marginalized groups and states that every dollar they spend should align with their progressive values. While they plan to remain on the platform to engage with their community, they will reevaluate their presence based on developments regarding extremist and violent content. Twitter's advertising revenue has seen a significant decline, and the company has faced challenges in meeting sales projections. Elon Musk denies the claims of
increased hate speech on Twitter since his ownership, sharing a graph indicating a decrease in "hate speech impressions." Ben & Jerry's has a history of advocacy and promoting progressive values, and they list various movements they support on their website. They previously made headlines for ceasing ice cream sales in East Jerusalem and the West Bank.
MiQ, a global
programmatic media partner, has appointed Zillah Byng-Thorne and Rob Norman to its Global Statutory Board. This comes as MiQ expands its presence through strategic partnerships and acquisitions. Byng-Thorne, with her extensive experience in C-suite leadership roles, will chair Future plc while advising MiQ on operations. Norman, an industry veteran, brings executive leadership experience to the board. The Global Statutory Board is responsible for corporate governance, compliance,
budgeting, capital structure changes, and long-term strategy. MiQ has been making significant moves, including a commercial agreement with Samba TV and the acquisition of AirGrid. The partnership with Samba TV strengthens MiQ's Advanced TV solutions, while Samba TV shifts focus to data and measurement services.
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