The global game software market is projected to reach $35.4 billion in 2010, with an annual growth rate of 8.9%. Chan Yeng Kit, CEO of IDA*(Infocomm Development Authority of Singapore) released a statement:
"The Asia-Pacific region will lead growth in the online and wireless games markets at 45% & 48% respectively, by 2009**". In Singapore, there are 60 over games-related companies, from game developers and publishers, to regional online game operators. International game companies like Boonty, Real Arcade and Electronic Arts already have a presence, using Singapore as a base to distribute to the region.
Gaming has grown to become a thriving business as it is no longer restricted to the niche gamers. Contrary to the stereotypical image of male gamers, growth will be from the female market and online games. Online games alone are expected to deliver business exceeding $12 billion, especially with the females. On 14 June, the MDA (Media Authority of Singapore) announced plans to fund ten local gaming studios to develop game prototypes. It has roped in major international studios to act as mentors. The
emphasis will be on casual games which do not target hardcore gamers, but the broader segments of teens
and women. From 19-22 June, Singapore has hosted asia's largest computer graphics conference, CG Overdrive. Over 3,000 computer graphics experts and fans from around the world will gather to advance the computer graphics/ gaming industry in Asia.
With technology and the incredible distribution prowess of the internet, long tail economics in gaming has been made possible. About 60 million casual games are downloaded each month. Over 150 million people worldwide play free casual games on
the internet. However, less than 2% actually purchase them. A study*** of gamer's habits show that 24% of leisure hours is spent on playing games. With content becoming ‘free’ and broader segments spending more time playing games, there is tremendous opportunity for both publisher
and marketer for the advertising-driven revenue model.
In-game advertising, if done tastefully, can be highly effective. Unlike passive TV viewers, game players are focused and actively involved in the gaming experience. Advertisements can offer a higher level of realism, enhancing the overall gaming experience. Advertising that is non-invasive to game-play and is contextually relevant can create a positive connection between brand and consumer.
Studies**** show that:
- In-game advertising resulted in 60% increase in awareness for a new product
- Animated 3D ads achieved twice the recall of static billboards
- 50% of players agreed that in-game advertising makes a game more realistic
- 54% of players agreed that the in-game advertising caught their attention
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Comments from reviews by bloggers show that brands that enhance realism to the game and not damage escapism, score well with them.
"I don't mind sponsorship if it is in keeping with the style of the game, and I have every respect for what Sony has done with the game. I don’t mind the billboards (I didn't mind the Redbull sponsorship in 2097) – It’s just the names of the teams sticking out like a sore thumb.
Like watching a good movie on TV, you are immersed in this wonderfully imagined world, then suddenly (always at twice the volume - why do they do that?) there's this #4%@* person dancing around trying to sell me shampoo. Bugger off! But I don't mind, for example, the Coca-cola billboards in Blade Runner. There it is part of the style of the movie, but if, say, the chief android was called 'Coca Cola' then it would not!" |
To enhance the effectiveness, it is imperative that brands
get involved early and do extensive testing on how users interact with the game and any advertising properties within. Brands also need to hold to the principle that the gaming experience is paramount as the last thing a brand needs is backlash.
Here are some examples of negative and positive gaming advertising:
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Subway in CounterStrike
Mistake: Overt branding within gaming environment
Lesson: Be relevant and sensitive to the game environment. Gaming experience comes first. |
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Pizza Hut in EverQuest II
Success: Pizza Hut advertised to 333,000 active account holders with
Sony’s "EverQuest II" to sell pizzas online. All the gamers needed to do was to
type the command "/pizza" while playing Everquest II, and they get to place
orders for delivery.
Lesson: Leverage consumer insight - While engaged in gameplay, gamers forget to sleep, drink and eat. Pizza delivery is convenient. |
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Burger King Xbox Games Holiday Giveaways
Success: During the holiday season, Burger King
sold three ‘made for BK’ Xbox® games at US$3.99 each, with every Value Meal purchase.
Lesson: Ride on festive seasons, entertain the gamers and leverage on a celebrity (Brooke Shields in this case). The response was overwhelming - "There is no way these will last the whole promotion. I would be surprised
if they are still available after two days", Blogger. |
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US Military's Recruitment Tool - "America's Army" Game
Success: "America's Army" became the most successful army recruiting campaign ever in the
history of the US military.
30% of young people who had
a positive view of the military said that they had developed that
view by playing the game.
While gaming, players got information on the US
armed forces and learnt about the battlefield.
It also allowed direct marketing initiatives and a direct call-to-action
for signing up and joining the military.
Lesson: Entertain and integrate campaign objectives meaningfully. |
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With the gaming industry players still exploring and experimenting with revenue models , the cost of entry into in-game advertising is currently relatively affordable. If CPM of in-gaming advertising is compared with other media, cost may be higher. However we should consider beyond measurements like reach and page impressions, to engagement, and even direct leads and sales with in-game advertising.
Notes:
*IDA’s vision and ongoing efforts, are to develop Singapore into a gaming regional hub.
IDA partners the local gaming industry to meet worldwide demand by developing, producing and distributing.
Source:
**PricewaterhouseCoopers
*** Nielsen Entertainment (US) of gamers’ habits
****Nielsen Interactive Entertainment (Oct05) |
