“33% of people have spent more time playing video games across all age groups. For Gen Z that figure is 48% whilst 37% of millennials have spent more time gaming (GWI, 2020).â€
Mobile gaming is touted to be one of the hottest channels for advertising. The COVID-19 pandemic has pushed marketers to look at places where the audience is spending their time most. James Draper, CEO, Bidstack, walks us through the world of in-game, native, and programmatic advertising tech. He discusses how brands can achieve success with programmatic in-game ad campaigns.
In this edition of MarTalk Buzz, Draper shares why forward-thinking brands can look at in-game ads for higher engagement rates. He also dives deep and answers how brand ads can feel more authentic and improve user experience when placed in a game.
Key Takeaways on Why In-Game Advertising Is the New Normal:Â
- In-home media consumption patterns have evolved during the COVID-19 pandemic.
- Gaming differs from other ad channels because it demands a player’s full attention.
- Integrate ads into natural spaces within the games to expect higher ad engagement rates.
Here’s the edited transcript from our exclusive interview with James Draper:Â
1. With most consumers working from home, there is an increased demand from advertisers for in-game, native, and programmatic advertising tech. What does this mean for advertisers looking to achieve success with programmatic in-game ad campaigns?
First and foremost, it means they have a much larger audience to engage with than before. The gaming audience had been growing at a substantial rate anyway. But what we have seen since the COVID-19 outbreak are rapidly evolving in-home media consumption patterns. Since distancing measures were introduced, 33% of people have spent more time playing video games across all age groups. For Gen Z that figure is 48% whilst 37% of millennials have spent more time gaming (GWI, 2020).
eSports have also grown in popularity in the absence of traditional sports and there is evidence to suggest that growth in this area is likely to continue too. For advertisers, running programmatic in-game ad campaigns opens them up to an enormous secondary audience.
2. In the new digital ad tech paradigm, which success metrics can be used to focus on educating advertisers about gaming and eSports? Why is it a brand safe environment?
Our current measurements of success are primarily driven by ad viewability. We define a “view†as an ad being 100% in view for at least 2 seconds on a user’s screen while the industry standard for desktop display, for example, is 50% in view for 1 second.
This means that our benchmark significantly greater than some of the more traditional forms of digital advertising channels. We see significantly higher total view times than other digital mediums.
Our campaigns run in two ways:
- Direct: These are campaigns set up in-house with brands and with creatives that have been pre-approved by the publishers.
- Programmatic: These are campaigns set up by trading desks, also with approved brands and creatives. Programmatically, we only operate via Private Market Places (PMP), which are created on an individual game basis. This means that no one can buy our media without us providing sign off, ensuring brand safety.
In addition to this we have our own creative approval process within our ad server (Adconsole). Once a campaign is set live, either directly or programmatically, the creative arrives at our ad server for final publisher sign off. This method removes the possibility of any ad fraud and guarantees brand safety.
Also read: Transforming Game Advertising: Google Launches New Features for Developers at Think Games China
3. According to GroupM’s June 2020 reportOpens a new window , global ad spend is predicted to fall by 11.8%. How can in-game ads offer higher engagement rates than mobile-optimized websites or desktop web browsing?
Web based advertising still has an important role to play but many forward-thinking brands are asking the same question, ‘where are the eyeballs?’ Undoubtedly, some of them are driving web traffic, but significant chunks of that traffic utilize ad blockers or consume their media via paid for ad-free platforms.
Mobile gaming differs from other ad channels because it demands a player’s full attention. Research points to the fact that the always-on-consumer splits their attention between their mobile device and television when watching a show. But the nature of gaming means that if their attention is diverted, the player’s immersion is broken, and they are unlikely to be performing well. This immersive, engaging nature of video games lends itself to higher engagement rates.
We commissioned research into the engagement levels we see in the games and benchmarked our performance against other channels. The study found that we outperformed standard display advertising by 2.6 times and that average dwell times were 1.5 times longer than standard display norms. This bodes well for the future of this exciting new category.
Also read: Beating Ad Fraud With Effective Invalid Traffic (IVT) Detection
4. Statistics report that 82% of Gen Z skip ads as soon as possible. In what ways can brands incorporate ads within games so they do not harm the user experience or feel inauthentic?
This is the most critical point when it comes to in-game advertising. Creating intrusive formats are poorly received by gamers. So, for us, it is about integrating advertising into natural spaces within the games that do not detract from the realism of the virtual world, rather enhance it.
For example, dropping an LED banner into a medieval village would obviously ruin the authenticity of a game. Whereas, if a brand’s ads feature on LED banners at the start/finish line in a racing game or the pitch side in a stadium, it feels natural because gamers expect to see them there.
Advertisers want to reach gamers is understandable. However, it is essential that they are respectful of the artwork of the games they appear in and understand that the target audience will not accept unauthentic or disruptive activations.
5. What are the metrics necessary to carry out in-depth analysis for in-game ads, with respect to the approach, objectives, and audience of the campaign?
We predominantly segment users by anonymized gender, geo, and age demographic data. We then look at performance by viewability, unique exposure, frequency, total impressions, and the total time the ads are in view. Then we look at user in-game interaction such as time of day, duration, number of gaming sessions and so on. These numbers can help us review how we might weigh future campaigns.
Also read: How Advertisers Can Begin To Move Past IDFA for Identity
6. Rewards-based advertising is touted to provide a higher response rate. What are the data points and insights that advertisers can rely on to engage consumers with brands on this level?
Apart from the obvious response rate, various attribution/conversion metrics such as installs, downloads, and app engagement will be the KPIs. However, with iOS14 changing the mobile ad landscape, this will change across Apple devices and almost certainly for the Android market too.
The way we attribute campaign success would vary greatly depending on the chosen standardized method of adoption by the market. While the industry comes up with a solution, advertisers should work closely with publishers and vendors to understand the impact rewarded video ads have had on the user’s engagement with their app. This would provide an additional layer of third-party insight into measuring the consumers’ engagement level.
7. As brand partnerships with game developers have become more common, how can advertisers translate ad fraud protection methods over to developers?
Current technology, guidelines and outcomes from ad fraud protection vendors vary greatly in quality not to mention the accreditation methodology being relatively loose. Meaning the success of existing stacks should be reviewed. However, there are some ad fraud protection methods that can be translated over to some game developers.
Advertisers should be creating new methods and tech with game developers to avoid technical, operational, and commercial fragmentation in ad fraud protection. This is especially true for games in environments nascent to advertisers such as PlayStation, Xbox, Stadia, and Steam.
The Media Rating Council accredited vendors should be able to handle existing ad fraud methods on media channels and devices (such as mobile and streaming platforms within browsers). Adoption of (app-)ads.txt and sellers.json by game developers is an addition to the safe guard armory.
However, if the brand partnership resides within nascent environments for advertisers such as PlayStation, Xbox, Stadia, and Steam, new methods and technology need to be developed. Rather than translate ad fraud protection methods for game developers to adopt, it should be the other way round. Game developers and console providers are not reliant on advertisement revenue thus changing the status quo of the traditional client-publisher relationship is the need today.
Also read: Mobile Advertising Evolution: Mobile Web to In AppOpens a new window
8. With 5G continuing to make waves, enabling lower latency and higher speeds, which trends should advertisers and brands focus on to create immersive experiences and make products even more lifelike?
5G and the advent of cloud gaming could open the door to mobile gaming becoming even more accessible. For brands this will be good news but the principles of respecting the audience will remain. I can see further innovation around crowd participation with some big budget titles being created specifically around interactivity within live streams. Ubisoft’s upcoming Battle Royale Hyper Scape is a good example of this, which is looking to implement Twitch viewership in a way that mainstream titles have yet to do.
I would not be surprised to see new types of games emerging where crowd members can jump in to temporarily assist their favorite teams or streamers or can vote to shut down certain parts of the map to increase that interactivity. We have seen concepts like these discussed in the conversations around cloud gaming and how streaming and video platforms such as YouTube and Twitch can further become a part of the experience. I see no reason why these could not become branded experiences if they enhance the eSports scene surrounding the game and add value for the gamer.
About James DraperOpens a new window :
James founded Bidstack in 2015 utilising more than 15 years of commercial experience to launch his own business. Since the initial launch he has seen the company grow from a one-man operation to an international business which trades on the London Stock Exchange. Under his stewardship, Bidstack became the first ever Crowdcube funded company to go public and he pivoted the business into gaming in 2017. James leads the business as a whole and is responsible for the company’s direction, growth, development, and vision.
About BidstackOpens a new window :
Bidstack is an in-game advertising platform. The company bridges the gap between game developers and advertisers by enhancing the gaming experience with real-world ads. Advertisers can reach a captive audience in a creative, effective, and engaging way. Whilst game developers leverage Bidstack’s platform and expertise to open a new, incremental revenue stream. The company has grown from a crowdfunded startup to one of the fastest-growing businesses on the London Stock Exchange.
About MarTalk Buzz:
MarTalk Buzz is an interview series where marketing leaders and marketing technology companies that are making a difference, connect with us and share their stories. Join us as we talk to them about their product journeys, insights on the categories they serve, what works for them, and some bonus pro-tips. Got a buzz story, you would like to share with us? Write to [email protected]Opens a new window
How can brands win with in-game advertising in the COVID-19 market? Share it with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .