As we head into the last quarter of 2024, I thought I’d share five trends and five winning brand strategies we’re seeing in gaming.
Five Trends in Gaming
1. Cloud gaming
The rise of cloud gaming is making gaming more accessible by eliminating the need for expensive hardware and enabling cross-platform play and progression. This means players can start a game on one device and continue on another without losing progress. Simply put, gamers can game anywhere, anytime on any screen. As such, gaming is further poised to dominate even more consumer media consumption time. MSFT’s GamePass is a popular cloud gaming offering allowing players to play X-Box games on their X-Box, phone, tablet, smart TV, and OTT devices.
2. Gaming is the new social
For Gen Z and Gen Alpha, gaming worlds are replacing feeds when it comes to social. 70% of Gen Z hang out in games without playing the actual game. The rise of cloud gaming is also turbo-charging social features like collaborative play.
3. The cross-over between gaming and retail media networks
Recently, MSFT partnered with Amazon to enable Gamepass on their Fire TV sticks, which brings me to our second trend, the cross-over between gaming and retail media networks. Retail media networks run by major retailers like Amazon, Walmart, and Target use first-party data to target consumers with personalized ads and they’re seeing explosive growth here. When these networks extend into the gaming world, ads can be hyper-targeted using shopper data to ensure relevance. It also allows brands to create omnichannel campaigns that follow the consumer from the game to their shopping journey.
4. A shift from 2d to immersive experiences
We’re moving from a cookie-fueled world of one-way passive media consumption to a more participatory, interactive experience of digital. One day the internet will be all around us, and forward-looking brands are recognizing gaming as a gateway to the more immersive future.
5. Emergence of AI and Machine Learning
What trend round-up would be complete without some mention of AI?! AI is expected to enhance ad targeting and personalization, creating more relevant and timely ad experiences for gamers.
Five Winning Brand Strategies
1. Respect the Player-first Ethos
Winning brands respect the player-first ethos because they understand that it’s important not to break the illusion of play. Ads that blend seamlessly with the game environment, like intrinsic in-game ads, are less likely to disrupt the player’s experience and can in fact enhance gameplay by adding to the realism of the game. Good user experience and creative are also important to respect gameplay, which is why earlier this year we released the first ever Creative Guidelines and Best Practices in Advertising in Gaming. It’s available for download now at iab.com.
2. Understand the Value Exchange
Successful brands lean into the value exchange opportunities gaming offers. For example, rewarded ads where players can watch an ad to receive in-game rewards like extra lives or currency, have shown to have higher engagement, brand favorability and recall.
3. Authenticity
Winning brands understand the importance of authenticity in gaming. They understand the audience and how that audience wants them to show up in these communities. For example, Wendy’s made a game out of destroying frozen meat in Fortnite to promote their promise of always fresh, never frozen and amassed more than 1.5M minutes of watch time.
4. Leverage Creators and Fandom
Successful brands understand how to tap into the passion of gaming communities not just in the game but around the game. For example, Adidas partnered with popular gaming influencers to create co-branded merchandise and successfully tapped into the influencer’s fanbase to drive sales.
5. Make Gaming Part of an Integrated Strategy
Finally, the brands who are seeing success in gaming are approaching gaming as part of an integrated marketing strategy. We need to stop thinking of gaming as a siloed activity or a niche consumer demo. It will become as strange to say ‘Gamers’ as it is to say ‘Video watchers’. Gaming is entertainment, and can amplify and complement media buys in other channels.
If you’d like to learn more about these trends and discuss them with industry leaders, you can request a pass to join the IAB Gaming and Immersive Media Leadership Summit in NYC on Wednesday, October 9th.
