As digital marketing continues to evolve, one area that’s increasingly drawing attention is game advertising. Despite its rapid growth and immense potential, many brands in Australia have yet to fully leverage this powerful medium. In an insightful discussion at the IAB Gaming Advertising Summit, industry experts highlighted the often overlooked opportunities within game advertising, urging brands to consider it as a core element of their marketing strategies.
Current Landscape
According to Yun Yip, chief commercial officer at iion, game advertising is no longer a niche market but a mainstream medium that’s rapidly gaining traction. “There’s about 85 per cent of Australians engaging with gaming at 81 per cent,” Yip pointed out, citing an Australia-based 2023 report. This shift is further underscored by the fact that 91 per cent of people play games with their friends or family, reflecting the social and inclusive nature of gaming today.
Yip also dispelled the outdated stereotype of the average gamer being a young male playing on a console. “The average gamer is now 35 years old with an even gender split,” she explained.
Jan Bojko, the insight strategy lead for Amazon Ads, also highlighted the changing demographics of gamers. “What we think of, or used to think of, as boys in basements, is now a startup calling,” Bojko said, pointing to the broad appeal of gaming across various age groups and genders. He emphasised that the audience for gaming has evolved significantly, particularly with the advent of mobile gaming and platforms like the Nintendo Wii, which have made gaming more accessible to a wider audience.
Growth Strategies
Advertising revenue within the gaming sector will only continue to rise, predicted to outpace all other digital advertising sectors. This robust growth trajectory positions gaming as a critical area for brands to explore if they wish to stay competitive in the digital advertising landscape. “The advertising revenue in gaming is showing the highest growth percentage, with a compound annual growth rate of 7.6 per cent,” Yip said.
Zoe Soon, VP of Experience Center at IAB US, also appeared at the conference via video link and highlighted the key trends shaping the gaming industry, including the rise of cloud gaming, the integration of retail media networks, and the increasing importance of AI in creating personalised gaming experiences. “Gaming is poised to dominate even more consumer media time,” Soon remarked, noting how innovations like Microsoft’s Game Pass are making gaming more accessible and ubiquitous.
In terms of strategy, Soon emphasised the importance of respecting the gaming experience, using seamless in-game ads that enhance rather than disrupt gameplay. She also pointed out the growing importance of authenticity, as brands that align with the values and expectations of gaming communities tend to see greater success. “Winning brands respect the player and understand the importance of authenticity,” she said, citing examples like Wendy’s Fortnite campaign, which resonated with gamers by staying true to the brand’s identity while engaging with the gaming community.
Insights From Google
Rebecca Holmes and Rebecca Conrad from Google further elaborated on Australian brands’ underinvestment in gaming despite the medium’s significant reach and influence. “There are more daily gamers in Australia today than there are weekly or monthly gamers,” Holmes noted. Conrad added that Gen Z and Gen Alpha, the upcoming economic powerhouses, are deeply immersed in gaming, making it a critical channel for brands looking to connect with these demographics.
The pair likened the opportunities within the gaming sector to the Commonwealth Bank’s early sponsorship of the Matildas. Just as the bank foresaw the rise and potential of women’s soccer, brands today have a unique opportunity to capitalise on the growing influence of gaming. “There’s a big opportunity for brands to tap into that now and to get in early on gaming,” Conrad urged.
Amazon Ads
The growing popularity of gaming content beyond just playing games was another key point Bojko made. He noted, “Gaming today means so much more than just play.” With platforms like Twitch and YouTube, many people engage with gaming content passively, watching live streams or expert content creators rather than playing games themselves. This shift in how people consume gaming content offers brands a variety of ways to engage with audiences.
Bojko also discussed the importance of understanding the diverse motivations behind why people engage with gaming. “The most popular motivations to engage with gaming content are to have fun, de-stress, and unwind,” he said. These insights can help brands tailor their messaging to resonate with different segments of the gaming audience.
From a practical standpoint, Bojko shared a case study that demonstrated how Amazon Ads has successfully leveraged Twitch to create engaging, branded experiences. “We took a format that was tested in the US…and we also offered advertisers a couple of opportunities to sponsor some of those segments that were related to their product or service,” Bojko explained. The campaign, which featured local Australian talent and a mix of endemic and non-endemic brands, resulted in significant lifts in brand recall and purchase intent.
Bojko’s insights were clear: gaming offers a wealth of opportunities for brands willing to innovate and engage with this dynamic and growing audience. However, it requires a shift in mindset, recognising that gaming is not just another media channel but a unique cultural space where brands can build meaningful connections.
iion
Rupert Pay painted a stark picture of the present state of game advertising, criticising the industry’s tendency to “put money into the same old thing.” He described game advertising as often being relegated to “the innovation 10 per cent,” implying it is frequently seen as an afterthought rather than a core component of marketing strategies. Pay argued, “the reality is… game advertising feels to be that kind of… last thing on the plan, first thing off the plan. That’s what we need to change.”
Pay pushed the importance of integrating creative thinking into game advertising strategies, noting that the sector has traditionally struggled with this aspect. “Creative is super important… it seems to be all of the issues with the media agency and media vendor and tech vendors. They don’t really do the creative.” He advocated for collaboration with creative partners who understand and can effectively influence game advertising.
Pay also underscored the need for empirical evidence to support game advertising efforts. He stressed the value of partnering with third parties that can validate the effectiveness of campaigns. According to Pay, “You need empirical evidence. You need partners to validate the work you’re doing”.
Addressing a common challenge in game advertising, Pay discussed the importance of accurately segmenting the gaming audience. He noted the difference between various gaming experiences, such as “a five-hour Fortnite session” versus “somebody getting their phone out and playing a little game.” Pay suggested that understanding these differences is essential for effective audience segmentation. He pointed out that analysing data on session times and behavior across devices could help in building more precise audience segments.
The IAB Gaming Advertising Summit served as a reminder of the evolving nature of game advertising and the need for continuous adaptation and innovation. As the experts suggest, the path forward involves a strategic shift towards integrating creative and data-driven approaches to maximise the impact of game advertising.
The message was clear, game advertising is not just a passing trend but a powerful, growing medium that offers unparalleled opportunities for brands. By embracing gaming as a central part of their marketing strategies, brands can not only reach a vast and engaged audience but also position themselves at the forefront of digital innovation.
