By Ashwin Suresh
Gaming has emerged as a new form of entertainment, surpassing movies, traditional sports, and even music. Fueling this transformation is the incredible power possessed by livestreaming and esports platforms, offering a unique avenue for companies to advertise their brands and diversify their reach.
In recent years, esports in India has witnessed explosive growth. According to the Niko Partners Games Report, India was the fastest-growing video games market in Asia, with revenue from video games across all platforms expected to reach $868 million in 2023, marking a 21.2 percent increase.
This underscores the fact that factors such as tech device penetration and the growing internet economy are inducing more people to engage with esports as a leisure activity.
Marketing tool
Amid this growth, livestreaming platforms are becoming hotspots for advertising, proving advantageous for them in terms of monetisation and popularity.
According to a recent Dentsu report, livestreaming platforms are experiencing the most rapid growth in revenue generation, with a year-on-year increase of 13 percent, which, in turn, is attracting a larger consumer base. This trend is fostering an attractive connection between brands and livestreaming platforms.
In the current scenario, if a brand is marketed only in theatres, on OTT platforms and social media to reach their audience, such an approach would fall short. This is because the ever-evolving world of brand advertising has now gravitated towards cutting-edge gaming platforms.
Brands are looking for qualitative attributes, ranging from strategically placed in-game advertisements within the virtual worlds of games to branded content on these platforms. The gaming arena offers a multitude of unprecedented opportunities for brands to establish creative and captivating connections with consumers that were previously beyond imagination.
Mobile gaming, in-game advertising
India is primarily a mobile-first market, with 96.8 percent of gamers playing on smartphones or tablets, as indicated in a recent study by Niko Partners.
Acknowledging the cornerstone of gaming’s growth, one of the most significant contributors to its rise is mobile gaming. With more people than ever before spending their leisure time on mobile devices, brands are recognising the potential of advertising in this space.
Additionally, an EY-Loco Gamer survey provides substantial backing for this assertion. The survey underscores the robustness of the Indian gaming market, with almost 48 percent of gamers actively investing in mid-core games.
A significant 65 percent of paying gamers acknowledge their participation in in-app purchases at least once. These statistics collectively affirm that India stands as a thriving and fertile ground for esports and gaming enthusiasts.
In such a case, the combination of mobile-based gaming and in-game advertising presents a powerful way for brands to effectively reach their target audiences, often in vernacular languages as well. These tailored experiences allow brands to connect with consumers in a more personalised and localised manner.
The average time spent on mobile games, especially on trending games such as Free Fire, BGMI, and Call of Duty, is more than 100 minutes. Additionally, advertisers are attracted to the substantial user base and significant user interaction.
The data generated by the mobile gaming sector acts as a goldmine for advertisers, enabling them to conduct effective targeting based on age, geography, gender, device, language, and interest groupings to reach their ideal users and optimise ROI.
KFC, Gillette, H&M, ICICI Bank, Beardo, and EaseMyTrip have already experimented with this evolved tactic to reach out to their target audiences.
Opportunities for brands, creators
Gaming platform advertising offers a wealth of opportunities for brands seeking to connect with engagement that is redefined in the digital age. Apart from creators on social media platforms, livestreaming platforms also have gaming creators and influencers who can reap the benefits of strategic partnerships with advertisers.
These partnerships not only provide creators with the means to monetise their content but also enable brands to tap into the authenticity and influence that these creators hold within the gaming community.
For instance, Swiggy partnered with a gaming platform, allowing users to redeem Swiggy money using the gold they earn on the platform by watching streams and playing games. This is also followed by Adidas, Loreal Paris, and Monster Drink.
Future of gaming advertising
With global revenue estimated to reach $475 billion by 2027, as stated by the Dentsu X Loco report, the future of advertising across gaming platforms seems even more promising. Additionally, user-generated content and influencer marketing will continue to play a pivotal role.
The sector is evolving tremendously, with new games and trends emerging all the time. Brands that can keep pace with these trends and adapt their marketing strategies will have a considerable edge in their respective segments and connect with consumers in new and innovative ways.
Gaming platform advertising is a dynamic and potent tool that offers brands a unique set of advantages. It provides reach, engagement, authenticity, and innovation, all within the rapidly growing world of gaming.
Esports tournaments surpass traditional sports events in terms of viewership. With the help of esports livestreaming platforms, brands can reach gamers and spectators directly and steadily but in an innovative way.
The turnaround time is quick, there is straightforward integration, and brands can experiment with different formats and inventory measures, giving them a fair and balanced outcome.
For example, there are different stream and display assets on streaming platforms like in-stream video ads, homepage banner ads, clip/reel ads, and offer walls that can be customised to reach a particular target audience.
So, the economics of gaming platform advertising are here to stay, and those who embrace it will undoubtedly reap the rewards in the digital playground of the future.
Ashwin Suresh is the founder of Loco