Video game

Analysis: Video games are the next hotspot for advertisements – Business Insider UK


The gaming workaround: Twitch and YouTube

FILE PHOTO: A twitch sign-in screen is seen at the offices of Twitch Interactive Inc, a social video platform and gaming community owned by Amazon, in San Francisco, California, U.S., March 6, 2017.  REUTERS/Elijah Nouvelage/File Photo

Twitch.

Reuters


Given that advertising within video games as they are being played is complicated and that it’s seen by many as potentially alienating gamers, many marketers ask: Why bother? Especially since brands can reach gamers or gaming fans rather easily by running ads on YouTube and Twitch.

It’s a reasonable point. Twitch, boasting millions of consumers watching professional gamers, influencers, or amateurs, is a platform where marketers can run traditional video ads or pay for product mentions. Its audience has grown 10% since the coronavirus outbreak and subsequent mass quarantining, reported The Verge. Though according to The Information, Twitch was projected to pull in $300 million in ad revenue in 2019, and was still struggling to find traction among big brands.

YouTube also features an abundance of gaming content, including esports talent and instructional videos by gaming personalities.

According to SuperData, the audience for gaming video content grew 5% in 2019, landing at 944 million viewers worldwide. “Overall, when it comes to gaming, people are watching as much as they are playing,” noted Dario Raciti, US Director of Zero Code, a division of media agency OMD.

Raciti said he’s recently steered many marketers away from big in-game brand integrations and toward branded videos produced by prominent gamers.

“In the past few years, we’ve seen a pretty dramatic shift away from the older in-game model toward advertisers working primarily with game influencers, esports teams, and leagues,” he said.

As Raciti sees it, game creators offer more flexibility for brands, not to mention a potent fan base. And because these creators make entertaining videos for a living, they “are often much better at telling brand stories,” he said. “With the right partner, we see branded content generating millions of views in just a few days.”



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