The fastest-growing segment of entertainment isn’t movies, TV or even short-form video à la TikTok and YouTube — it’s gaming. In fact, more than one-third of the world’s population already regularly spends time playing video games, whether it be via traditional console games like Call of Duty, in virtual environments like Roblox and Fortnite, playing mobile games like Candy Crush or Wordle or simply watching other gamers play on platforms like Twitch.
The video game industry has one major advantage in the fight for share of mind and wallet — the interactivity and deep engagement already built into these environments. With eMarketer projecting that advertising revenues within video games will surpass $8.5 billion in the U.S. alone this year and reach $11.5 billion by 2027, brands clearly already have a healthy appetite for this audience. In fact, 40% of advertisers plan to boost their spending in gaming over the coming year, making it the third-most-popular channel for increased investment after social media (47%) and digital video (40%), according to a study by the Interactive Advertising Bureau (IAB).
The IAB’s SVP of Research and Insights Jack Koch summed up the situation at the organization’s PlayFronts event earlier this year: “Capturing consumer attention in these immersive, engaging experiences offers a huge, tremendous opportunity for brands.”
Want to learn more about how to become a top player in the exciting world of gaming commerce? Download the full report: “On the Verge: Embracing Gaming Communities to Drive Commerce.” We’ll break down the gaming sector in detail, outline the various advertising and commerce opportunities, and share success stories from brands including Walmart, the NFL and Mattel.
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What Makes Gamers Different?
Consumers have a variety of motivations when they game: to pass the time and relax; to have some fun and even escape from the “real world”; to keep their brain sharp; or to stay connected with family and friends. That’s not to mention that gaming often results in a satisfying sense of accomplishment. But there is one motivation that stands out as particularly compelling: fandom, and in particular the engagement and sense of community that gaming’s fan culture produces.
“We’re all fans of something — gaming, music, sports, you name it. But over the years, fandom has evolved, and today we have the power to be fans of whatever we want,” said Bill Young, Head of Games at Twitch at the IAB PlayFronts. “Fandom is enjoyment and identity. For many, fandom is a part of everyday life. So when we think about the spaces within culture that have the capacity to influence a collective group, fandoms and fan culture are a really big part of that. Those communities of fans who come together for their love of one topic have an outsized influence over what gets attention within those communities, and that has the propensity to extend out into the broader public sphere.”
The Difference Between Watching a Protagonist and Being One
The fandom force is particularly strong in gaming communities because of the amount of time players spend in these ecosystems and the interactive nature of that participation. And with two in three fans saying their fandom is a defining part of their identity, according to a recent Twitch study, making an impression on gamers can have halo effects well beyond the game environment. There is something particularly enduring about gaming fandom as well — the average gaming fan has been involved in their particular community for approximately 12 years, according to the Twitch study.
“You consume this media in a way that’s not passive; that seems fairly obvious, but it has bearing in terms of the investment [people put in],” said Jonathan Stringfield, formerly VP of Research and Marketing at Activision Blizzard and now serving in a digital advertising role at parent company Microsoft. “The extent to which you’re not just watching a protagonist, but you are the protagonist, is a big differentiator. The second part is the extent to which this forms a community. Many games are inherently very social. Even with games that don’t necessarily have online play components, such as Candy Crush, there is a huge base of fans that talk about the game on web forums and share their passion,” he said at Advertising Week New York.
One such fan is Kimberly Thompson, President and Global Client Lead at media agency Spark Foundry, who has been part of a Call of Duty “squad” for 20 years: “I have seen these people get married; I have gotten married; I have carried through decades with them,” she said at Advertising Week NY. “On Saturday mornings at 4 a.m. without fail for the last 20 years, I am online — my husband, nobody, can touch me. And I’ve only met one of these people [in the real world] once.”
News Flash: Gamers are not Averse to Advertising
Somewhat surprisingly given such passionate communities, gamers are in fact open to brand participation in their environments: “There’s this misconception that gamers are averse to advertising,” Twitch’s Young said. “They’re not averse to advertising, but they are averse to tone-deaf, ham-fisted advertising that talks at them. They welcome brands that bring value to the content they enjoy, especially those that enhance that experience.”
In fact, 63% of fans surveyed by Twitch said they are happy for brands to get involved with their fandoms as long as they make the effort to understand it.
“What happens is some of that love that they have for the games tends to then be reflected upon brands that are integrated therein, when done the right way,” said Activision’s Stringfield.
Looking to continue your own gaming adventure? Then check back next Tuesday, Sept. 3 for our full report: “On the Verge: Embracing Gaming Communities to Drive Commerce.” We’ll break down the gaming sector in detail, outline the various advertising and commerce opportunities and share success stories from brands including Walmart, the NFL and Mattel.
