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Home Marketing B2C Marketing

How marketers are investing in games: IAB PlayFronts

March 27, 2024
in B2C Marketing
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The gaming industry saw lots of disruption during the last yr, including the consolidation of major publishers, layoffs and canceled game releases. On the ad side, nonetheless, marketing budgets for gaming are growing. As a result, the tone on the third annual IAB PlayFronts this week was measured but optimistic.

“We’re seeing a maturation of the space,” said IAB’s vice chairman, Experience Center, Zoe Soon, in her keynote address. “We’re seeing how gaming can deliver incremental audiences and amplify outcomes across your complete consumer journey.”

At the event in New York, which brings together publishers, adtech partners and media buyers, IAB released a recent study showing increasing marketer interest in the space and providing tips on the way to engage gamers higher. Updated creative guidelines were also provided to assist marketers learn, and help promote, the principles of the gamers’ road.

Why we care. While gamers are a ubiquitous multitude, they are not a demographic monolith. The video game industry has known this for years, but some brands are still learning the way to connect with these very engaged consumers.

Strength in numbers. Some 86% of marketers already invested in gaming say it’s of growing importance in their organization, based on “Changing the Game: How Games Advertising Powers Performance.” The study, by IAB and media consultant Advertiser Perceptions, surveyed 300 U.S. marketers.

Forty percent of current game advertisers plan to extend spending in 2024.

The study also points to eMarketer’s projection that U.S. gaming spend will swell from $8.5 billion in 2024 to $11.5 billion by 2027. There are 213 million consumers in the U.S. who discover as gamers, based on Entertainment Software America (ESA).

Budgets. A 3rd of current gaming advertisers have carved their spend out of their general media budget. Over half have budgets committed to specific games or devices.

Image: IAB.

Brand safety. Gaming advertisers are overwhelmingly confident in brand safety. Nearly 90% agree that promoting in games is brand secure. They consider it the second-safest digital channel, just behind CTV, and safer than social media, digital audio and digital display.

Also, this doesn’t just apply to general-audience games like Candy Crush. Many advertisers are also confident in their investment in games for mature audiences, in addition to promoting around user-generated content in the gaming ecosphere.

Understanding gamers. With marketers shifting budgets to gaming, they need to know more about the way to reach the audience.

“Recent layoffs [at publishers] have dampened some spirits, but how the story has evolved is promising,” Soon told MarTech on the PlayFronts kickoff. “This yr it’s taken as a on condition that everybody knows the dimensions of the gaming market, so we’re taking a look at who the audience is, to inform their story.”

Dig deeper: Manifesto for the makers of the metaverse

Converting customers. Because many gamers are highly invested in and keen about their favorite games, marketers who engage gamers see results across the buyer journey.

For constructing awareness, 32% of marketers rated gaming ad performance as “excellent,” with one other 46% rating it nearly as good. This placed gaming in third place, barely behind social media and digital display.

However, for converting sales, advertisers ranked gaming second, behind social media. Two-thirds (66%) of marketers found ad performance for purchases in games either good (42%) or excellent (24%).

Metrics. Here are the metrics that gaming advertisers are tracking, based on the IAB study.

Image: IAB.

Guidelines. This week, IAB also releases “Creative Guidelines and Best Practices in Advertising in Gaming,” a collaboration between IAB and IAB Tech Lab.

The report goals to ascertain standards and suggestions for ad types across mobile, PC and web-based games that are effective for advertisers while preserving the sport experience for gamers.

The post How marketers are investing in games: IAB PlayFronts appeared first on MarTech.

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