While gaming was formerly considered a niche area for dedicated fans and teenagers, it is now mainstream, with over half of the adult population in the United Kingdom playing games last year.
Growth as well as constant upheaval has defined the gaming industry even before COVID-19, including increased digital sales of games and esports, the introduction of free-to-play business models, live streaming, and cloud gaming platforms.
We worked with OC&C Strategy Consultants on research into the gaming marketing business as a whole, establishing links to other media and entertainment, and identifying significant implications of gaming marketing.
1. Digital sales are increasing
As physical game sales drop off, people opt for the option of purchasing games digitally, thereby opting for a digital purchase or distribution method. Higher digital growth is achieved as internet connection continues to grow larger, greater capacity for storing games in the hardware, and also reduced physical location traffic. Due to these advancements, smartphones, fast wifi, and speedy networks changed consumers’ perspectives towards music, films, and games from the original physical view. Publishers must prioritize digital distribution in their gaming marketing plan as digital sales and distribution of games continue to rise.
2. Business models are rapidly changing in the gaming industry.
Game income structures are changing, affecting both the lifetime of games and the mechanics of gameplay. With the adoption of microtransactions across multiple franchises on all platforms, revenue models such as the free-to-play model are gaining traction. This comes as a direct result of altered consumer behavior as well as increasing adoption of recurring revenue models among AAA titles of console and PC games. What marketers need to know is exactly what gamer behavior indicators they’re tracking so that they can bring that information into their gaming marketing efforts, enabling them to find the most likely spenders.
3. The Gaming Industry is emerging as a social platform.
The usage of gaming as a method of socialization increased even faster during the COVID-19 lockdown measures. In big-player-based games, virtual environments are also being used as meeting spots where players may socialize and enjoy a live event. The development of online multiplayer services for immersive experiences will continue. Tens of millions of spectators have been attracted by virtual live performances, and this is an indication of the successful collaboration between video games and music. More game makers are likely to generate possibilities to enter this market.
4. Popularity of content creators and live streaming
The video game view has been increasing because of COVID-19, which drives new streamers and content providers. The scope of video game content that is now available for viewing is also growing. There has been an emotional investment by viewers in broadcasters that creates real communities.
5. Customer Insights and Data
With better access to more detailed data as the gaming marketing business goes more towards digital, creating closed-loop marketing tactics will be easier. Important for developers is the customer’s feedback on which elements of the game are used more extensively, detecting retention difficulties or signals, and determining where new monetization components may help to improve profitability. It’s a journey we’re all on as we get closer to closed-loop marketing.
6. Cloud-based delivery is the next big thing.
With Netflix-style access to libraries of quick games, cloud gaming services threaten to disrupt the established ways of marketing from publishers. The market for cloud gaming platforms will likely be highly competitive, so differentiation will be essential. Marketers will have to decide which of the cloud platforms are best for acquiring and retaining gamers. They’ll also need to decide whether they should stay platform-neutral or pursue deeper relationships and, in some cases, an exclusive deal.
Every marketer wants to reach a point where they can correctly map the customer journey for all sorts of audiences. Gaming marketers must understand the importance of every contact point where a potential player sees and hears about the game. They must also understand the impact of each of those touchpoints on the user’s acquisition. Based on the lifetime value projected or known, businesses may then determine how much to spend on each of those touch points. Finally, they must also devise a strategy on how much and where they should invest to keep the player interested.
As the industry goes fully digital and integrates technology, people, and processes, game marketers have a great chance of effectively increasing their audiences by implementing closed-loop gaming marketing methods. Outside of the game business, there are huge fallout effects for advertising.
Why should you rely on Trackier for Gaming Marketing?
Trackier helps you find the most valuable gamers, as well as strategies for keeping them engaged and building a profitable monetization plan. This means you can track all of your affiliates’ marketing activity from a single platform. Coordinate all your marketing efforts on one platform with our performance marketing software, and empower partnerships by enabling interactions between Advertisers and affiliates with our Partner Management platform. To expand your gaming app, use our audience insight tools to attract high-value gamers.
