Rethinking In-Game Advertising
There is an enormous advertising opportunity in gaming. The global market for in-game ads is expected to reach $18 billion in the next five years, and a recent survey conducted by Deloitte found that gen Z gamers spend, on average,12 hours per week playing video games. However, the reach of this captive audience, especially for high-end gaming typically found on PCs and consoles, is only nearing its potential.
The advent of cloud-based and ad-supported gaming will surely open up gaming to a larger audience, but recent attempts to bring gaming to the masses have floundered. And while the consumer demand and the advertising opportunity are there, advertisers are looking for solutions that go beyond traditional in-game advertising and reach that extends to the broadest possible audience.
Brands want to move beyond performance-based, interruptive ad experiences to more engaging, in-game ads that enhance, rather than detract, from play. The challenge for mobile app publishers is to get the word out to brands that there are premium opportunities beyond performance ads. In Admix research, 93 percent positive brand association was found for in-game play ads.
Start-ups like Anzu tout in-game play capabilities that deliver non-disruptive ads that respect gameplay. Ads that allow gamers to keep playing can make a big difference in engagement and favorability.
Early in-game advertising opportunities, from companies like Niantic, included billboards. Sponsors have been designed into games for years, from specific car brands to restaurants and movies playing in a scene.
Now, in-game advertising can be more creative and more dynamic. These types of product placements are going to be done programmatically, allowing for targeting and real-time campaign optimization. This advancement not only frees brands from having to plan months in advance to be part of a game, but also allows them to target specific audiences and optimize what they pay.
Reaching Diverse Audiences
With programmatic buying comes the ability to target specific audiences. In gaming, audiences are not only quite diverse (46 percent of gamers are women), they can be emotionally involved in a game. This means that brands need to do a bit more homework to ensure that they're finding the right audience for their message. Simply looking for "women 25 to 35" isn't enough.
Gamers are something of a community. Unlike ads on a streaming show, where viewers are passive, gamers are often interacting with other players. They are opinionated and create elements of the game themselves, such as their avatars. A game that is very gritty and urban would be a terrible place for one brand or a perfect match for another. The gamers will notice.
Striking a Balance
While brand advertisers are looking for new formats to engage with gaming audiences in a less intrusive form, some advertisers still rely on user engagement metrics like "click" to measure success.
Different in-game play developers have different viewpoints. Gadsme for instance, can create an environment to engage with gamers and track clicks. Anzu however, promotes a less intrusive environment and drives brand awareness through viewability.
While there are options for advertisers to achieve their campaign goals, it is important to be reminded about user (gamer) experience. Balancing the performance driven aspects to drive greater branding outcomes is essential.
Measuring the Difference
One sign that seamless in-game advertising has arrived is the IAB's recent release of updated measurement guidelines for intrinsic in-game ads. Essentially, the IAB considers any ads that are part of gameplay to be intrinsic, and they now account for standard elements such as viewability, measurement and fraud.
These new standards, along with the new in-game advertising capabilities that are available to brands, allow brands to think about in-game ads as more than one-offs to their media plan. Now, brands can create a programmatic gaming plan that can scale and be measured across different gaming apps.
The views and opinions expressed are solely those of the contributor and do not necessarily reflect the official position of the ANA or imply endorsement from the ANA.
Lashanne Phang is the senior director of mobile at PubMatic.