Why Gaming Should Be On Every Advertiser’s Radar

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by Anna Munhin Apr 18, 2022 News
Why Gaming Should Be On Every Advertiser’s Radar
Ionut Ciobotaru, co-CEO, Verve Group

The column explores opportunities and challenges in advanced TV and video.

Ionut Ciobotaru is the co-CEO of Verve Group.

The industry is talking about upcoming advertising opportunities as a result of the latest wave of consolidation among gaming and ad tech players. This is not just about advertising in more places. It is about understanding and connecting with consumers in ways that they deem most valuable.

Microsoft's acquisition of Xandr and its subsequent purchase of Activision were the big news that started the conversations. The ball had been set in motion by others. Why is the flood happening now? Is that a tech play? A media event? A data play? Yes, yes and yes. It is a consumer play.

There is a massive shift underway in the marketplace drivers.

Everyone is a game player.

Do all of today's trend conversations have to start with the effects of the Pandemic? I'm afraid of that. It's unavoidable in this case. Everyone went home for two years, and people started gaming more. It would happen over time. The trend was accelerated by the Pandemic. Eric Seufert writes that this is particularly notable in terms of the growth in capital availability for upstart gaming companies and projects that we have seen during the Pandemic.

More people are entering the game, and they are playing in more ways than ever. Look at Wordle or Axie. brands want to meet these audiences where they are and in ways that make sense for everyone

It keeps getting bigger.

Video games are bigger than movies and sports combined. The money that people are spending on games is not the only thing. The time people spend playing games is what it is. That makes video games interesting. Speaking of mass media.

Existing models are being broken by the channel crossover.

For a long time, we have talked about gaming in a fragmented fashion: console gaming, PC gaming, mobile gaming. The language is getting old. It's just a game, and it's multi-channel.

Think about the way we watch TV. For a long time, we have talked about linear viewers, OTT viewers, and mobile viewers. People don't think of themselves that way. They just want their content on any device.

They want to decide how they pay for their content, whether via a subscription or an ad. It has been up to broadcasters, platforms and media owners to give consumers the flexibility they want. It is up to gaming companies to follow suit.

Companies need to be closer to consumers.

As gaming companies and ad tech companies come together to enable and monetize the growing and converging world of gaming, they are doing so in a landscape where identity is becoming scarcer than ever. They need to own their customer relationships. They need to be able to keep their data within their own fortresses.

The ad tech play is important here.

Ad tech is more than just serving ads; it is about understanding consumers and context and building appropriate experiences. User acquisition, retention and engagement are not just monetizations. It is about being able to handle this in-house in a way that is privacy-first.

Getting into gaming.

The business models built around the gaming universe are evolving as well. The IAB is trying to educate buyers about the basics of in-game advertising. The advertising equation built around it will require thought and constant evolution because gaming is sacred to the people who play it.

Blending the worlds of gaming, marketing and first-party data will allow companies to meet the high standards of their customers and the payoff will be worth it.

You thought that the advertising trend was going to be CTV? Wait until you get a lot of gaming.

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