Random Thoughts
June 22, 202
Much has been said about in-game advertising and it is no secret that a large portion of the advertising dollars are already moving there. With more than 3 billion gamers worldwide expected by the end of 2023 (almost half of them in the APAC region), and an audience that is much more engaged than traditional entertainment program watchers (whether linear or connected TV), it is only natural and expected that the advertising dollars are moving this way.
But having said that, there are many forms of advertising tactics and strategies within this space, each with its own expected outcome and level of effectiveness. This week, I will give you a list of the different forms of in-game advertising strategies that I am aware of and can creatively come up with, and further provide you with my personal view on what you can expect each of them to effectively do.
Before I dive into the details, let me state that I will be using NBA2K as the game to illustrate most of these strategies, not only because it is the highest grossing game globally and I am also a fanboy of it, but more importantly, it is the one game that conducts the most amount of in-game advertising, both in terms of quantity and variety. So, onto the different formats of in-game advertising:
Static in-game advertisement and/or logo placement: This is probably the most basic in-game advertising where your brand logo (or advertisement) is placed within the game environment. In the example below, you can see Statefarm, AT&T, and Ruffles logos all placed at various spots on the basketball court. However, this form of advertisement will not be effective in encouraging purchase behavior, its only purpose is just to remind players of the brand, and perhaps even generate brand awareness.
Dynamic in-game advertising: Different from static advertising, dynamic advertising means that personalized advertisements are placed in the game based on the preference or behavior of the individual player. While this form of advertisement is more targeted, however, I remain doubtful of its effectiveness in actually encouraging purchase behavior amongst players. Its purpose, again, is really only to maintain or even raise brand awareness.
Interactive in-game product placement: Similar to product placement in the movies, products are placed in the video game itself where there is some sort of interactive nature to it, making the product part of the game. In this example, the players can buy Gatorade for its characters to boost its player attributes. Since this type of advertising is interactive, it is much more likely to create a deeper impression in players’ minds. It is therefore much more effective in maintaining and generating brand awareness than the previous two strategies.
In-game sponsorship: This is when a brand becomes part of the game for a limited period, and not the entirety of the game’s life cycle. In this example, Ruffles sponsors a PvP (players vs. players) basketball tournament (whether 3v3, 4v4, etc.) within the NBA2K game, usually only last for a period of a few hours where the winners would get Ruffles branded clothing and attribute boosts for their character. Similar to interactive in-game product placement, this is very effective in maintaining and creating brand awareness, but only for a much shorter period of time.
IRL coupons to win in-game prizes: I remember one year in NBA2K’s MyTeam mode (MyTeam mode is all about putting together all-time team using virtual player cards to go up against other players’ all-time team), an elite player card is released in the form of a locker code that you can only find within real-life Ruffles potato chips packs. Consequently, a lot of players went out and bought a ton of Ruffles chips just to see if they can find the locker code in it. As you can see, this is an effective tactic to increase short-term sales, as long as the game is popular and players are invested in it.
Advergame (usually mobile based): These are mini-games developed with the advertised brand as the core. I personally have serious doubts about the effectiveness of these games as a marketing tool, especially considering the costs involved. Ultimately, these games are usually very simple and not challenging, and players are often not invested in them. Although there are some mini-games out there that are addictive, but the chance of you developing one is very low, especially given the large quantity of these types of games already out there. And even if you are lucky enough to create an addictive one, all the game really does is maintain and maybe raise brand awareness. Ultimately, I do not think the benefit is worth the costs and risks.
Video game merchandising: This is when brand create IRL products using popular game titles as the inspiration. For example, Coca-Cola recently released a limited edition packaging and flavor using League of Legends as the theme. This can be an effective tactic to increase short term sales, as long as the featured game is popular and as importantly, has a large set of diehard fans.
So now that we have gone through all these different formats of in-game advertising, as an advertiser, you will need to be smart in terms of which one you choose to use. Obviously, you need to identify clearly what your objectives are and choose the format accordingly. But two important things you will need to keep in mind throughout this decision process:
In-game advertising formats that are interactive in nature (the brand actually plays a role in the game) will always be more engaging and impactful than non-interactive ones.
The game titles that you choose to partner with should be ones that are not only popular (with large gamer base), but also have longevity (games that are played throughout the year, and not ones that players play once and not play it again). In this respect, if you go to Twitch.com, you will find games like NBA2K, FIFA, League of Legends, CounterStrike, Call of Duty, Valorant, APEX Legends amongst others consistently being ranked as most watched games. And these are the games that deserve your attention.
Well, that’s my two cents on this subject. Hopefully, as always, it’s been helpful to you. Do feel free to comment and let me know your thoughts. As importantly, remember to follow us on our LinkedIn page for more! Until next time!
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