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How has the gaming industry has been affected by the revolution of digital marketing, and what's still to come?
As new digital marketing technologies are introduced every year, gaming companies will have to shift their existing game marketing strategies in order to keep up with competitors. In fact, Gartner predicts a 10 percent increase in CMO digital budgets in 2014, which opens up a huge opportunity for gaming companies, both AAA and Indie. Developers must re-evaluate their internal processes now in order to effectively leverage this new age of marketing.
Below are some changes executives need to be aware of when planning their game marketing initiatives, and some ways they can adapt their campaigns in order to keep up with these shifts in the gaming industry.
Both console and mobile are still growing
Unlike cable TV, the traditionally dominant players in the gaming space are not set to slow down. Next-generation console systems are predicted to increase in market share each year, showing that enthusiasm for the most powerful gaming technology isn’t going anywhere. What is shifting is the nature of how we use them.
2012
Console | 47.42% | 47.48% | 48.59% | 49.57% |
|---|---|---|---|---|
Handheld | 22.51% | 19.36% | 14.84% | 11.16% |
Mobile | 11.77% | 14.16% | 16.87% | 19.82% |
PC | 18.30% | 19.00% | 19.70% | 19.45% |
One trend that should already be on gaming executives’ minds is the same digital, cross-platform growth that is happening with television. Gartner also predicts that the total revenue of the industry will increase from $77 billion in 2012 to $111 billion in 2015, a 44 percent increase. Mobile and tablet gaming revenue is also expected to increase particularly fast, from a 12 percent market share in 2012 to almost 20 percent in 2015.
The way consumers use consoles, smartphones and tablets creates a massive opportunity
Connected devices like Xbox One and Playstation 4 aren’t just for AAA titles and developers anymore. And really, they aren’t being used solely for games. Since the launch of these next-generation consoles, the industry has seen some interesting trends around indie game development, streaming gameplay video through third-party apps like Twitch, streaming TV through Netflix and Crackle, browsing the Internet, and general use as all-in-one entertainment machines.
This consumption is actually contributing to a larger shift in digital advertising. Consumers are using devices that satisfy all their entertainment needs, and are beginning to consolidate their attention to one or two. For example, your ideal gamer could be using their Xbox One or Playstation 4 for every leisure activity, and would be accessible at any moment that you would try to reach them with digital marketing.
The same goes for mobile. Smartphones have become ubiquitous and tablets continue to replace PCs in homes across the developed world. Game developers have raced to take advantage of these devices and their 24/7 presence in consumers’ lives. Gaming now accounts for the majority of mobile internet usage, but streaming video content is also growing steadily in terms of usage as mobile technology improves. This statistic underscores the importance of the channel that the digital revolution has created, as it allows you to market to your target users with a better chance for direct response than ever before.
Quality marketing channels on console and mobile already exist
Chances are that most console and mobile titles already have a formidable marketing plan in 2014. Indie development on consoles and a competitive marketplace for mobile apps means that many things (timing, advertising, publicity, etc.) need to align well for a successful launch. With that in mind, think of how you can take full advantage of the opportunity the digital revolution creates.
Give mobile marketing another look – A lack of rich, quality inventory is no longer an issue on mobile devices. Interstitial ads, where a full-page ad appears before the actual webpage, have come a long way, and you can leverage the game trailers and other game teasers you’ve already created right within these units. The targeting is also better than before as this technology matures, so you can more efficiently reach your gamers with a quality message and call-to-action. It is also scalable and cost-effective compared to traditional marketing channels.
Be the first to leverage true cross-platform marketing – Though it has been part of the digital lexicon for years, effectively marketing to any consumer device, including Xbox and Playstation, is only just coming to fruition. Video streaming technology and advanced UI means more high-quality inventory on every device. You can also use one piece of creative online, on consoles, and on mobile phones, so going cross-platform doesn’t have to add a ton of overhead to your marketing process.
Get gamers involved during Alpha and Beta – Like developers, gamers want to fully immerse themselves in their favorite titles. Give them a chance to get involved early in the process with alpha funding and beta testing. Being open and accepting of fan criticism during the creative process can build buzz and loyalty in a way that most forms of marketing can’t. The digital revolution has created this opportunity, and the popularity of transparent development is ramping up.
All signs are pointing to both consoles and mobile devices being the next great platforms for quality digital marketing and there is no better place to reach your gamers than the devices they use to play, stream video, and share these experiences live with friends. The visionary gaming marketers that can identify these trends and jump on the opportunity first will be glad they weren’t left behind.
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