Game of Ads: How Mobile Games Became the Ultimate Battleground for Brands
Okay. So you know how every day it seems like there's a new platform, a new advertising trend, like something else vying for our attention?
Speaker 2:Yeah. Definitely.
Speaker 1:Well, one thing's really caught my eye lately, and that's games. Like, honestly, who would thought video games would be such a magnet for advertisers?
Speaker 2:Right. It's huge.
Speaker 1:But you know what? You're already ahead of the curve because you wanted the inside scoop on how effective these ads really are. So that's our deep dive today.
Speaker 2:Yeah. It's a good question because it's not just a fad. The whole advertising scene is changing, and games are right in the middle of it all.
Speaker 1:Yeah. And we're diving into a March 2024 report for this one. It's called Changing the Game, How Games Advertising Powers Performance. And it's a collaboration between the Interactive Advertising Bureau or IABE as the cool kids call it, and Advertiser Perceptions.
Speaker 2:And this isn't just some theoretical stuff. They actually talk to over 300 people in marketing, like brand leaders and agency experts, to get a feel for what's really working.
Speaker 1:Oh, yeah. And the data in here is wild. It really shows you how much this whole games advertising thing is blowing up.
Speaker 2:Yeah. Right off the bat, the report throws out this prediction. By 2027, they're saying ad revenue from games in the US alone is gonna practically double what it was in 2023, landing around a cool $11,500,000,000.
Speaker 1:Okay. Wait. 11,500,000,000 by 2027? That's insane. What's driving this whole thing?
Speaker 1:Why are games suddenly like the advertising world's favorite child?
Speaker 2:Well, they talk about how we see games now. It's not like it used to be this niche hobby. Remember, you knew maybe a couple gamers, but it wasn't really mainstream. Totally. Now it feels like everyone and their grandma is playing something.
Speaker 1:It's so true. And they would never call themselves gamers, but they're hooked on those phone games or playing with their kids on consoles or totally lost in those massive online games. It's not just teenagers in basements anymore.
Speaker 2:Exactly. And that's a huge reason why advertisers are all over this. They're not trying to reach gamers anymore. They're trying to reach everyone. People are spending more time in these digital worlds than ever, and brands wanna be where the eyeballs are.
Speaker 2:You know?
Speaker 1:Right. It's like prime real estate, but in the digital world. But you know what I think when I hear video game ads? I immediately think of those really obvious product placements from way back, like a billboard for pizza just awkwardly shoved into a sports game. Yeah.
Speaker 1:Not exactly subtle.
Speaker 2:Oh, yeah. Totally. The old school in game advertising was definitely let's just say it was a little rough around the edges.
Speaker 1:Yeah.
Speaker 2:We've come a long way since then. The creativity now is on another level.
Speaker 1:Mhmm.
Speaker 2:We're talking about ads that are basically woven into the game itself.
Speaker 1:Okay. Now that sounds interesting. Interesting. So what kind of ad formats are we talking about specifically? Well, you still got your classic in game placements, like billboards
Speaker 2:or posters within the actual game. Yeah. But instead of being static images, they're dynamic and eye catching. They're almost impossible to tell apart from the game's design.
Speaker 1:So it's more like they're part of the scenery, not just slapped on top.
Speaker 2:Exactly. And they can change based on what you do in the game, your location, even the time of day. It's like those targeted ads you see online, but they feel like a natural part of the gaming world.
Speaker 1:Gotcha. That makes sense. But it sounds like that's just the beginning.
Speaker 2:Oh, yeah. There's way more. There are also interactive rewards.
Speaker 1:Yeah.
Speaker 2:Imagine you're playing your favorite game, and you have the option to watch a short video ad in exchange for in game currency or a cool item.
Speaker 1:Oh, okay. Yeah.
Speaker 2:A lot of players actually choose to watch those ads because they get something out of it.
Speaker 1:So it's not really an interruption. It's more like a win win. I'll scratch your back. You scratch mine.
Speaker 2:Exactly. And then there are sponsored levels or challenges. These are basically mini branded experiences within the larger game. They're designed to be fun and engaging, almost like a game within a game.
Speaker 1:So instead of just seeing an ad, you get a whole branded experience that's actually enjoyable. That's clever.
Speaker 2:It really is. Yeah. And because these ads are integrated into something, people are already choosing to spend their time with the engagement and attention they get is unbelievable. You don't get that anywhere else. Yeah.
Speaker 2:It's easy to see why marketers are so drawn to games.
Speaker 1:Okay. I'm starting to see the appeal here. But let's get into the specifics. What makes these ads so much more effective than, say, a banner ad on a website or a commercial that you just try to skip through? Let's get into the nitty gritty.
Speaker 2:Yeah. You're right. It's not just about being there. It's about tapping into that focused attention. And the report actually breaks down why these ads work so well.
Speaker 2:And, honestly, some of it might surprise you.
Speaker 1:Okay. Hit me with it. What are we missing?
Speaker 2:Well, there are a few misconceptions floating around about games advertising. For 1, some people think games only appeal to a specific type of person. Yep. You know, the stereotypical gamer.
Speaker 1:Yeah. We were just talking about that. It's like people haven't noticed that games aren't just for teenagers anymore.
Speaker 2:Exactly. The report actually found that over 90% of the advertisers they talked to said games helped them connect with a much wider range of people than they thought possible. You've got everyone from Gen z to baby boomers getting in on the action now.
Speaker 1:It's true. My aunt is more addicted to her phone games than my teenage nephew.
Speaker 2:Mhmm.
Speaker 1:But what about the advertising space itself? The Internet can feel like a digital billboard jungle sometimes. Ads are everywhere you look. Is that a problem in games too?
Speaker 2:That's another myth the report tackles head on. A surprising 85% of advertisers said they actually see games as a really premium high quality environment for their ads.
Speaker 1:Really? Premium how?
Speaker 2:Well, think about the games themselves. They're visually stunning with incredible sound and immersive story lines. An ad that blends into that environment is gonna make a much bigger impact than some banner ad squeezed onto a web page.
Speaker 1:That makes sense. You're not competing with a 1000000 other things for attention. You're part of the experience itself.
Speaker 2:Exactly. And let's not forget about the elephant in the room, measurability. Mhmm. One of the biggest headaches with traditional advertising has always been figuring out if it's actually working. You put up a billboard.
Speaker 2:You run a magazine ad. But how do you really know if it's translating to sales?
Speaker 1:Mhmm.
Speaker 2:But nowadays, everything's about data.
Speaker 1:You tell me. If you can't measure it, did it even happen?
Speaker 2:Right. So where does games advertising stand in the data driven world? Well, this is where it gets interesting. The report says 85% of advertisers feel confident they can actually track the results of their games advertising. They're using the same sophisticated tools they use for other digital campaigns, click through rates, conversions, even brand lift studies.
Speaker 1:Okay. So they're not just throwing spaghetti at the wall and hoping something sticks?
Speaker 2:Not at all. They can see exactly how their ads are performing and make changes on the fly.
Speaker 1:That's impressive. But let's be real. There's another big concern for brands, and that's safety. You don't want your brand associated with something shady or offensive, especially in a medium as immersive as gaming.
Speaker 2:Absolutely. And the report addresses that head on brand safety is a huge priority for games advertisers, as it should be. But here's the kicker. The report actually ranks games as the 2nd most brand saved digital media channel right after CTV and OTT.
Speaker 1:Wow. 2nd place. That's huge. I I guess it makes sense, though. Games have content ratings just like movies, so advertisers have more control over where their ads show
Speaker 2:up. Exactly. They can choose to be in games that match their brand and target their audience. Plus, with today's technology, they can monitor and adjust those placements in real time to make sure their ads are always in the right context.
Speaker 1:So we've talked about why marketers are going crazy for games advertising, but the report doesn't just tell us why. It also shows us how it's actually playing out in the real world. And trust me, there are some seriously impressive success stories here. Are you ready for some real world examples?
Speaker 2:Okay. Hit me with it. What kind of success stories are we talking about here?
Speaker 1:So there's this one about a beverage company. You know, the kind of drinks you see advertised everywhere.
Speaker 2:Yeah. For sure.
Speaker 1:Well, they launched a campaign inside of Popelo mobile game, and get this. They saw a 20% jump in online orders that they could directly link back to that campaign.
Speaker 2:20%. That's wild. So it's not just about brand awareness. It's about actually driving sales.
Speaker 1:Exactly. And it's not just mobile games either. The report also talks about this car company.
Speaker 2:Oh.
Speaker 1:They took their newest car model and put it right into this well known racing game. Players could actually try the car out virtually,
Speaker 2:you know,
Speaker 1:see all the features, even customize it with different colors and upgrades. Okay. That's just cool. It makes sense, though. Right?
Speaker 1:If you can give people a fun way to actually experience something, especially a product like a car that's way more powerful than just a regular ad.
Speaker 2:Absolutely. And here's the best part. It's not only for the big companies with tons of money. The report highlights smaller businesses and niche markets finding success with games advertising too.
Speaker 1:That's really good to hear. So anyone can get in on this. But I bet some people listening are thinking, this all sounds great, but where do I even start? How do I use this information?
Speaker 2:I was just thinking that. Luckily, the report gives you a plan. They lay out a clear 4 step approach to help marketers get started with games advertising.
Speaker 1:Perfect. Break it down for us. What are the 4 steps?
Speaker 2:Alright. So step 1 Mhmm. Is knowing your audience and what you want to accomplish. Just like any marketing campaign, you need to know who you're trying to reach and what you wanna get out of it.
Speaker 1:Right. Because gamers aren't all the same, just like any other group.
Speaker 2:Exactly. So once you've got that down, step 2 is figuring out how you're gonna measure your success. What are the key performance indicators, KPIs that matter most to you? And how are you gonna track them? The good news is there are really powerful tools available now that can show you in detail how your campaigns are doing.
Speaker 1:Measure twice, advertise once right. What's step 3?
Speaker 2:Step 3 is all about testing, learning, and then scaling up. The report suggests marketers start small, maybe try out a few different ad formats or ways of targeting people, and then look at the results. See what worked and what didn't. Then you could fine tune things and gradually put more money in as you start seeing success.
Speaker 1:Dip your toes in before you do a cannonball. I like it. What's the final step?
Speaker 2:Okay. So step 4 is all about finding the right partners. The world of games advertising can be a bit tricky to navigate, especially if you're new to it. That's where teaming up with experienced agencies or platforms that really know this space can make a huge difference. They can help you come up with a winning game plan, figure out the whole buying process, and make sure your ads are actually seen by the right people.
Speaker 1:It's like having an experienced guide to help you navigate a new place. So we've covered a lot of ground today. From how fast games advertising is growing to why it works so well and those awesome real world examples, it's clear that this is a total game changer.
Speaker 2:Absolutely. And it's only gonna get bigger and more exciting from here.
Speaker 1:I have to say my head is spinning with possibilities, but here's one last thought for everyone listening. As games advertising keeps evolving, how do you think it might actually change the games themselves? Could we see more games that are designed with brand experiences built right in? It's a pretty wild thought. Right?
Speaker 2:It is. It'll be fascinating to see how it all plays out.
Speaker 1:Like they say, the only thing that stays the same is change, especially in the world of tech and advertising. Thanks for joining us on this deep dive. We'll see you next time when we'll explore another exciting corner of the information universe.
