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The tube strike had little effect on turn out at today’s IAB Digital Gaming Forum. A packed audience gathered to hear experts from the gaming industry discussing key trends affecting the market.
Wednesday, 10 June 2009
As the gaming industry begins to open its doors to advertisers, allowing brands access to both dedicated and casual gamers, this is a sector that offers huge scope for growth. New technologies and emerging demographics in the sector are sure to have a huge impact. But in the short term, current economic factors are playing a role too.
Difficult economy accelerates gaming
This was a point picked up by Joshua Graff, senior director of media sales at EA Games. According to Graff, expenditure on video games grew by 23% between 2007 and 2008 while DVD sales fell by 0.4% and music sales fell by 10%.
According to Graff there are a number of reasons for this. With people spending more time at home, gaming has become a cash-saving entertainment option for the whole family. “Five years ago you would have found the child playing a game on their own in their bedroom,” argued Graff. “This is no longer the case.” This repositioning of gaming as a communal experience has had a fundamental impact on the success of the medium, argued Graff.
Another key driver has been the growth of the female market – a market aided by the launch of the Nintendo Wii. As evidence of this, Graff pointed out that 30% of UK women are now gamers and women aged 35 and over make up 37% of women gamers.
The face behind the hands
Next up, Simon Falconer, consumer and emerging media insight lead at Microsoft Advertising, sought to explain the behaviour of one sector of the gaming community. Microsoft’s Face Behind the Hands research was a demographic and behavioural profiling study of Xbox 360 online gamers. The company conducted 500 interviews with UK male Xbox360 online gamers aged between 15 and 34.
Microsoft discovered that the target audience was playing eight titles and spending £57 per month. What’s more, 30% were gaming every day; 85% were gaming at least 3 - 4 times per week; and 42% were playing for 3 - 4 hours per session.
A crucial discovery for Microsoft was that while young men were spending huge amounts of time gaming each week, they did not see this as a solitary pursuit. Some 72% of respondents stated that they particularly enjoyed competing against other people online. Bursting some other myths, Microsoft also discovered that these gamers are not moody teenagers, but rather they are affluent, fashionable, well groomed people who like to win and who are also brand evangelists.
So, according to the research, gamers are a desirable and influential group that advertisers would do well to target. But how do they respond to in-game ad campaigns? Microsoft’s research showed that 65% of respondents agreed that appropriate ads "make the game more realistic" while 55% agree that they "look cool in the game". The evidence would appear to show then that used in the right way, advertising does not intrude on the gaming experience.
The future of gaming
Concluding the event, freelance gaming journalist Rob Fahey sought to explain what the future will look like. With the caveat that he hadn’t brought along a crystal ball, Fahey explained that the one thing he was certain of is that “revenues and growth numbers will soar over other entertainment platforms like music and film.”
According to Fahey, there are three reasons for this: existing players will choose games as their main entertainment option more often; the demographic will expand as the casual gaming market grows through developments like the Wii Fit; and there will be a move to new devices. For Fahey, the future will be driven by four key techie trends: the growth of motion controls; the movement online; things getting cheaper; and the shift towards mobile.
But why should advertisers care? According to Fahey, the development of online gaming is “putting traditional business models into flux”. This in turn offers advertisers an opportunity. “There is an opportunity for advertisers to get in at the ground level and to define those business models,” concluded Fahey.
No longer the preserve of the lonely male
Discussing today’s event, Kieron Matthews, marketing director at the IAB, comments: “While we consumers come to terms with the fact that gaming is no longer the preserve of the lonely male – due to the advent of Wii, online games and of course the improvement of mobile games – the challenge to convince advertisers is still there.
“Why then when the facts wholeheartedly illustrate the benefits of getting more involved in gaming are advertisers not doing more in this space? At a time when gaming is becoming both more personal and more social, surely the proposition moving forward is going to be a compelling one.”
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Wednesday, 10 June 2009
As the gaming industry begins to open its doors to advertisers, allowing brands access to both dedicated and casual gamers, this is a sector that offers huge scope for growth. New technologies and emerging demographics in the sector are sure to have a huge impact. But in the short term, current economic factors are playing a role too.
Difficult economy accelerates gaming
This was a point picked up by Joshua Graff, senior director of media sales at EA Games. According to Graff, expenditure on video games grew by 23% between 2007 and 2008 while DVD sales fell by 0.4% and music sales fell by 10%.
According to Graff there are a number of reasons for this. With people spending more time at home, gaming has become a cash-saving entertainment option for the whole family. “Five years ago you would have found the child playing a game on their own in their bedroom,” argued Graff. “This is no longer the case.” This repositioning of gaming as a communal experience has had a fundamental impact on the success of the medium, argued Graff.
Another key driver has been the growth of the female market – a market aided by the launch of the Nintendo Wii. As evidence of this, Graff pointed out that 30% of UK women are now gamers and women aged 35 and over make up 37% of women gamers.
The face behind the hands
Next up, Simon Falconer, consumer and emerging media insight lead at Microsoft Advertising, sought to explain the behaviour of one sector of the gaming community. Microsoft’s Face Behind the Hands research was a demographic and behavioural profiling study of Xbox 360 online gamers. The company conducted 500 interviews with UK male Xbox360 online gamers aged between 15 and 34.
Microsoft discovered that the target audience was playing eight titles and spending £57 per month. What’s more, 30% were gaming every day; 85% were gaming at least 3 - 4 times per week; and 42% were playing for 3 - 4 hours per session.
A crucial discovery for Microsoft was that while young men were spending huge amounts of time gaming each week, they did not see this as a solitary pursuit. Some 72% of respondents stated that they particularly enjoyed competing against other people online. Bursting some other myths, Microsoft also discovered that these gamers are not moody teenagers, but rather they are affluent, fashionable, well groomed people who like to win and who are also brand evangelists.
So, according to the research, gamers are a desirable and influential group that advertisers would do well to target. But how do they respond to in-game ad campaigns? Microsoft’s research showed that 65% of respondents agreed that appropriate ads "make the game more realistic" while 55% agree that they "look cool in the game". The evidence would appear to show then that used in the right way, advertising does not intrude on the gaming experience.
The future of gaming
Concluding the event, freelance gaming journalist Rob Fahey sought to explain what the future will look like. With the caveat that he hadn’t brought along a crystal ball, Fahey explained that the one thing he was certain of is that “revenues and growth numbers will soar over other entertainment platforms like music and film.”
According to Fahey, there are three reasons for this: existing players will choose games as their main entertainment option more often; the demographic will expand as the casual gaming market grows through developments like the Wii Fit; and there will be a move to new devices. For Fahey, the future will be driven by four key techie trends: the growth of motion controls; the movement online; things getting cheaper; and the shift towards mobile.
But why should advertisers care? According to Fahey, the development of online gaming is “putting traditional business models into flux”. This in turn offers advertisers an opportunity. “There is an opportunity for advertisers to get in at the ground level and to define those business models,” concluded Fahey.
No longer the preserve of the lonely male
Discussing today’s event, Kieron Matthews, marketing director at the IAB, comments: “While we consumers come to terms with the fact that gaming is no longer the preserve of the lonely male – due to the advent of Wii, online games and of course the improvement of mobile games – the challenge to convince advertisers is still there.
“Why then when the facts wholeheartedly illustrate the benefits of getting more involved in gaming are advertisers not doing more in this space? At a time when gaming is becoming both more personal and more social, surely the proposition moving forward is going to be a compelling one.”
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