Results tagged “IDC” from IABlog

There is no doubt that mobile gaming is a hot topic that is attracting the notice of brand advertisers. Mobile gaming is growing significantly due to three key trends:
  1. Growth in smartphone and tablet usage (according to the IAB Mobile Center research, as of January 2014, 57% of all US adults owned a smartphone and 44% owned a tablet)
  2. Increasing sophistication in mobile app ecosystem
  3. Growing willingness among consumers to pay for virtual goods and accept mobile advertising
Mobile game monetization comes from:
  1. Virtual goods
  2. Paid apps and downloads
  3. Advertising
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Per eMarketer, mobile game monetization is projected to increase significantly over the next four years. All three of the primary monetization models—downloads, in-game/virtual goods, and ad-supported—will grow, but the mix will shift in favor of in-game/virtual goods.
 
For these reasons, the IAB Games and Mobile Committees convened a Town Hall discussion titled “The Future of Mobile Game Advertising.” Susan Borst, Director of Industry Initiatives and the IAB lead for the Games Committee stated that interest in game advertising has never been higher and bringing these two committees together is important given that nearly a third of all time spent on mobile is on games. Joe Lazlo, Senior Director of the IAB Mobile Marketing Center of Excellence added that successful game advertising has much to teach the rest of the mobile ecosystem.

Following a welcome and some perspective on the state of mobile games advertising from event host, Jeff Colen, Ad Sales & Marketing at Zynga, Lewis Ward, Research Director of Gaming at IDC, shared some background information on smartphone growth and share, consumer spending on games and consumer sentiment for game play by device.
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Lewis noted the growth of the tablet for game play, and in particular the iPad as gamer’s favorite iOS devices. He went on to say that significant demographic differences exist across the various mobile platforms, notably HH income and gender, which have obvious implications for game developers and advertisers. For instance, the IDC study showed a big disposable income gap between iOS and Android, and game play on Kindle Fire skews heavily female.

Defining and sizing smartphone and tablet ads is “tricky due to technology fragmentation and the rapid pace of market innovation and evolution,” said Lewis, and the audience agreed. This is an area where the IAB could work to provide some clarity. 


Source: IDC
PANEL DISCUSSION
The key takeaway from the Town Hall discussion is that there has been a significant and important shift in just the past year or so and the momentum is building.  
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Key Highlights:

  1. Ad format evolution taking place: From advertising that offers player rewards, value exchange video advertising, rich media creative, branded content and more native integration—ads on games are becoming less aggravating—and more frictionless. 
    • There is an overall increased acceptance of advertising among users when advertising is executed in a way that brings value to their experience, is contextually relevant, delivered in a format that is visually appealing or synergistic to their mobile experience. Benjani highlighted inMobi’s focus on “working with studios and brands to create deeply integrated native ad experiences to connect advertisers to audiences globally.”
    • Emotional targeting that is additive to game play (creating value exchange between advertiser and user) tapping into players’ emotions and serving ads in the right place at the right time with the right message is a win for both advertisers and consumers. This allows the brand to be a welcome “hero” for the player, taking part in the user experience and offering players rewards during moments of “achievement” or tips at points of “frustration.” 
    • “In-game advertising is the only way brand marketers can reach and reward, encourage and rescue players in a way that adds value to the user experience. For example, during Breakthrough Moments™ (BTMs™), brands can reach game players during moments of “achievement,” such as when they get a new high score or a longest jump. With this approach, people will reciprocate the brand’s gift and take a post ad action—such as purchase a product or visit a website—and further engage with the brand, giving marketers a unique way to make lasting, meaningful connections with people,” said Brandt.
  1. Increasing focus on brand metrics: As Lewis noted, CPM, CPC, CPA and CPV all have some traction in mobile games, but increasingly, better brand metrics, analytics and real-time decisioning are changing the way effectiveness is measured. “Keep in mind as to where your ads are running as not all impressions are equal. If your primary KPI is to deliver a positive brand experience and association, look at where the ad is running and ask if you were playing this game - would you feel interrupted by or helped by this advertisement? User experience is at the paramount of successfully advertising on mobile and simply porting over outdated ad units and placements from display advertising is not enough. These are personal experiences on mobile and the key is tailor advertising to match this new medium”, said O’Connor.
  2. More options for developers and advertisers: From in-app to HTML5, more options are emerging for game developers and advertisers to foster “native” experiences. Grossberg added: “Brands are also beginning to leverage HTML5 to create their own mobile web games (the game is the advertising!) to engage their target audience at scale through this preferred activity on mobile, and do so in a cost effective manner in a way that fosters social and viral growth.”
Mobile game integration is a reality and has become industry standard for marketers.  The IAB Games Committee is  finalizing a white paper titled “The Games Advertising Ecosystem” report which is intended to help the industry understand today’s game play, the core game types and advertising categories for marketers to reach consumers.  Stay tuned!

About the Author

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Kym Nelson

Kym Nelson serves as an IAB Games Committee Co-Chair and is Senior Vice President of Sales at Twitch TV, the world’s largest live-streaming video platform. In this role since May, 2013, she has created Twitch Media Group, launching an inside, direct-sales media group at Twitch. She is responsible for creating and leading a world-class sales organization that delivers completely new and innovative digital solutions on a platform that is spearheading digital media as we know it today.