In recent years we have seen the perception of PC and console gaming pivot from unsociable and, let’s face it, a bit nerdy, to an activity that is universally enjoyed, with a growing community of women and older generations getting involved.
This shift was accelerated by the pandemic, when people were searching for new and more entertaining ways to connect. However, despite mobile gaming already establishing an effective marketing tool via in-game programmatic ads, PC and console gaming has been relatively under-utilized, especially considering users often play for two or more hours in one sitting. This is because it is more challenging to reach consumers in an environment in which they value their experiences greatly and do not wish to be interrupted.
However, by understanding how consumers value video games and the experience they demand, and learning from past successes and failures, brands can leverage the opportunity and optimize engagement and campaign effectiveness among gamers.
Gaming: Surge in Popularity
Gaming surged in the spring of 2020. Gen Z and Millennials, seeking entertainment during lockdowns, spent 23% and 21% more time respectively gaming as of March 2020, while a far wider demographic was also exposed to gaming during this time. There was a spread to non-traditional audiences and to a greater proportion of the younger generation. The number of people aged 60 and over searching for games increased by 200%, and 93% of under-18s admitted to gaming regularly. At the same time, gaming moved away from an isolated, unsociable stereotype, instead being enjoyed by all ages, alone and as a community activity. New groups emerged; ‘down-timers’ were parents or young professionals looking for a break, whilst ‘social gamers’ utilized gaming as a new way to connect with friends.
Fast forward to 2022 and we saw a slowdown as global inflation tightened purse strings, and chip shortages led to supply issues with gaming hardware. Even so, the global gaming market’s revenue increased by 45% from 2019 to 2022, and the sector is predicted to be worth a staggering $321 billion by 2026.
Opportunities for Advertisers
A unique opportunity has emerged for advertisers to reach younger audiences in a non-traditional format. Gaming audiences skew younger: 74.2% of 18-24 year-olds play video games in the US, according to Insider Intelligence, while TV penetration for the same group is just 58.2% and falling. Deloitte’s media trends report showed that playing video games is Gen Z’s favorite entertainment activity in the five countries surveyed (US, UK, Brazil, Germany and Japan). In fact, Gen Z spends a quarter of their leisure time gaming, more than on any other medium.
Traditionally, mobile gaming has been the most effective channel, and today, 45% of all video gaming ad revenue comes from mobile. Programmatic in-game advertising is seen as the most sustainable ad business for most marketers, with technology capable of measuring and tracking ad performance. Meanwhile, PC and console gaming is the most attention-rich and immersive envirnoment, but has historically been under-utilized by brands to access a hard-to-reach audience.
The reality is, however, that as players invest significant time and money in gaming, they do not want to be slowed down or hampered by repetitive on-screen ads, like those seen all too often on free-to-play mobile gaming and traditional linear media. Basketball simulation game NBA 2K19 came in for criticism when players were disappointed to find un-skippable ads surfacing within the game.
At the other end of the spectrum is Fortnite. The trailblazing battle royale game has collaborated successfully with multiple brands to create interactive and immersive experiences for its users. From soccer skins and interactive pitches in celebration of the World Cup and cosmetic tie-ins with the NFL, to a Marvel tie-up creating Fortnite x Avengers crossover events, brand partnerships have exploded on the platform. It has hosted game modes for franchises such as Star Wars, John Wick and Avengers: Endgame, and created branding that no longer feels like advertising. Firstly, it is optional and secondly, it has an immersive nature, bringing new and exciting elements to the game as players are seamlessly familiarized with the brand or product. These innovations are a great example of how brands can effectively reach gamers within console and PC gaming.
2023 and Beyond: An Exciting Frontier
The outlook for 2023 and beyond is certainly positive for the gaming industry. The US economy is on the road to recovery and rapidly-growing economies in Asia and the Middle East are expected to see sustained mobile gaming growth. PC and console gaming will continue its multi-platform investment, along with further commercial diversification in the eSports industry.
Game publishers will seek to leverage technology to help create an ever more personalized gaming experience. Storytelling will become increasingly bespoke with the use of technology such as generative AI, machine learning and zero code platforms, and brands – as we’ve seen with Fortnite – will be most effective when facilitating the creation of such experiences, enhancing them with added value and benefits.
While the ‘one-size-fits-all’ approach that may have been effective across traditional media, it will not be appreciated in a landscape where gamers are unwilling to endure linear commercial activity that interrupts their game.
What’s clear is that marketers need to develop a comprehensive understanding of target games, the experience they offer the player and the content and culture surrounding each. Only then can they determine how their brand might create added value in a way that is engaging, interactive and memorable.
Thoughtful, tailored approaches that enhance, rather than detract, from the user’s experience will be the most successful. Get it wrong and it could be game over. Get it right and you’ll elevate your marketing to the next level.
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