Tag: video games

Yes, There are More Digital Ways to Advertise to Millennials

Since Nin­ten­do debuted the first con­sole in 1985, video games have tak­en Amer­i­ca by storm and can now be played pret­ty much any­where now that they’ve expand­ed from con­soles and com­put­ers to mobile devices. This is great for the 67% of mil­len­ni­als who nev­er out­grew their child­hood gam­ing habits and play games month­ly. But what good is that for adver­tis­ers who are tar­get­ing mil­len­ni­als, but aren’t sell­ing video games?

eSports Advertisers Should Target Females

"Esports fans are often described as sim­ply “male mil­len­ni­als,” and the descrip­tion often fits: Glob­al­ly, men far out­num­ber women both as esports com­peti­tors and fans, reports Nielsen. That doesn’t mean women aren’t in the game, how­ev­er. Females are engag­ing with esports, and at increas­ing rates. Accord­ing to a recent Nielsen Esports Fan Insights sur­vey, 22% of esports fans around the world are female. And in coun­tries where orga­nized esports have been around the longest, we see more gen­der par­i­ty in esports fan­dom."

Video Games: The New Leader in Digital Life

The video game space is heat­ing up in a big way, espe­cial­ly when it comes to stream­ing. Late last month, Ama­zon stepped up to pur­chase Twitch, a video game stream­ing com­pa­ny. And ear­li­er this week, the Wall Street Jour­nal report­ed that Microsoft is close to pur­chas­ing Mojang, the mak­er of Minecraft. Why the sud­den inter­est in these com­pa­nies?

Connected TV Video Game Industry Set to Grow

Spend­ing on video games has been lack­lus­ter since the start of 2012. Sales of phys­i­cal soft­ware and hard­ware have both dropped and some ana­lysts attribute this decrease to a lack of must-have new titles being released. But in one sec­tor, dig­i­tal, con­sumers are still buy­ing.

Video Game Marketers to Target Mobile Devices

As the econ­o­my has recov­ered, con­sumer spend­ing bounced back in many cat­e­gories. How­ev­er, video games is one of the cat­e­gories that con­sumers did not begin spend­ing on again. Nielsen ana­lysts have stud­ied the pat­terns of con­sumer enter­tain­ment spend­ing and sug­gest that the video game indus­try is fac­ing tough com­pe­ti­tion. Changes in con­sumer behav­ior with respect to enter­tain­ment spend­ing could trans­late into new mar­ket­ing strate­gies by video game pub­lish­ers and retail­ers.

2011 Expected to Be a Growth Year in Gaming Industry as Consumer Demand Continues to Evolve

Accord­ing to The NPD Group, the pre­lim­i­nary esti­mate for total con­sumer spend in 2010 on gam­ing con­tent via all mon­e­ti­za­tion meth­ods, includ­ing new phys­i­cal video and PC games, used games, game rentals, sub­scrip­tions, dig­i­tal full-game down­loads, social net­work games, down­load­able con­tent, and mobile game apps, is between $15.4 to $15.6 bil­lion. Based on this esti­mate, spend­ing on new phys­i­cal con­tent at retail con­tin­ues to account for the major­i­ty of the total con­sumer spend on games con­tent. Bright spots came from PC games new phys­i­cal retail soft­ware, which was up 3% in 2010, as well as increas­es in the con­sumer spend on used games sales, full-game dig­i­tal down­loads and down­load­able con­tent, mobile gam­ing apps, and social net­work gam­ing, which off­set declines in con­sole and portable new phys­i­cal game sales, rentals, and sub­scrip­tions. Indus­try ana­lysts expect 2011 to be "a growth year in the games indus­try as the con­sumer demand for gam­ing con­tin­ues to evolve."

In-Game Advertising Linked to High ROI

As con­sumers turn to video games for enter­tain­ment, mar­keters have shift­ed some of their ad bud­gets to this for­mat. Doing so reach­es more con­sumer eye­balls, espe­cial­ly the hard-to-reach demo­graph­ic of younger men. This increased expo­sure to brands and prod­uct names via video games is trans­lat­ing to high­er sales for mar­keters accord­ing to a Nielsen Com­pa­ny study on this top­ic. .

Friends Play Top Role in Video Gamers' Purchase Decisions

Friends rank as the largest influ­enc­ing fac­tor in the pur­chase deci­sions of video games, accord­ing to a study released recent­ly by Waggen­er Edstrom World­wide, Annen­berg School for Com­mu­ni­ca­tion & Jour­nal­ism at the Uni­ver­si­ty of South­ern Cal­i­for­nia, and Har­ris Inter­ac­tive. The study indi­cat­ed that word-of-mouth influ­ence, led by friends, was three times as like­ly to influ­ence the pur­chase of video games as tra­di­tion­al forms of adver­tis­ing and pro­mo­tion. This was fol­lowed by retail, online demos, reviews, and adver­tis­ing and pro­mo­tion. Indus­try trade groups say the video gam­ing soft­ware indus­try rep­re­sent­ed sales of more than $11 bil­lion in 2008, and games were expect­ed to be a hot item for the 2009 hol­i­day sea­son.

More Than 80% of Kids 2–17 Identify Themselves as Gamers

Accord­ing to Kids and Gam­ing 2009, the most recent report from The NPD Group, among all kids in the U.S. ages 2–17, 82%, or 55.7 mil­lion, are cur­rent gamers. Of these gamers, 9.7 mil­lion are ages 2–5, rep­re­sent­ing the small­est seg­ment, while 12.4 mil­lion are ages 9–11, and rep­re­sent the largest seg­ment. At 10.6 hours per week, gamers ages 12–14 are spend­ing the most time play­ing video games, with the time spent play­ing drop­ping off among old­er teens, ages 15–17.

Drop in Video Game Demand May Lead to More Marketing

The reces­sion has not been kind to the video game indus­try. Con­sumers have been cut­ting spend­ing on nonessen­tials this year and video games have fall­en into that cat­e­go­ry. The video game indus­try is val­ued at $11 bil­lion at the retail lev­el but sales drops through the end of Octo­ber have come in at 19%.