Perspective - Steering the future of game advertising into 2024

By Yun Yip | 30 November 2023
 
Yun Yip.

The AdNews end of year Perspectives, looking back at 2023 and forward to next year

2023 has been a watershed year, with gaming and the Metaverse being major trends for the year. 

While it's exhilarating to see luxury brands like Gucci and Balenciaga make their mark in virtual spaces like Roblox and Decentraland, the real story is the democratization of this space. 

We're not just observing these trends; we're actively shaping them. We've been at the forefront of educating the market and partnering with the likes of the IAB and key agency partners in highlighting the opportunities in the space. 

Advertisers used to link game advertising to performance / acquisition marketing. Increasingly, with the breadth of game advertising success, we’ve seen a shift with more branding dollars moving into the space.

I am encouraged that in the short span of a year, we (alongside our partners) have used 2023 as a year to debunk myths, as well as make the space accessible to advertisers. 

I believe we will play a part in bridging the gaps across the gaming environments and reduce the learning curve for effective marketing in this exciting space. 

Looking ahead to 2024: challenges and opportunities

As we approach 2024, we're navigating a landscape rich in challenges and opportunities. Economic pressures and geopolitical shifts are affecting marketing budgets and industry confidence, necessitating proven value, especially in emerging channels like game advertising.

The overarching theme for both industries and consumers is resilience. Our focus is shifting towards a nuanced understanding of metrics, outcomes, and the intricate facets of attention and engagement. 

Game advertising, once an untapped domain, now requires a structured framework for measurement and adaptability.

We're innovating technologies to measure engagement and quantify marketing outcomes. 

Game advertising should be—measurable, effective, and engaging.

Key pillars for a robust 2024

  1. Understanding gaming environments: Grasping the unique characteristics of each gaming environment and how to effectively advertise within them.

  2. Audience depth: Recognizing that 72% of the population is engaged in gaming illustrates that game advertising is far from a niche market. There's a variety of audience groups in gaming. 

In fact, a survey by BabyCenter, a leading digital parenting resource, revealed that 75% of mothers play video games, and of that group, three-quarters game on their own. 

  1. Data-driven personalization: Utilizing advanced analytics and customization to elevate gaming as a powerful advertising medium it is.

Current market dynamics

The current market sentiment is a blend of excitement and apprehension. While innovative formats offer new possibilities, past experiences with low-quality inventory and intrusive user experiences have led to wariness.

Conversations about diverse game strategies have been lacking, making platforms like iion invaluable. We allow brands to set up sponsorships for the future while also responding quickly to the needs of various gaming environments.

As we pivot from the transformative year of 2023 into the promising yet challenging landscape of 2024, it's clear that the game advertising industry is at a critical juncture. 

A future-centric approach is not just desirable but essential. We are pioneering this approach, grounded in a deep understanding of the gaming ecosystem and aimed at improving it for all stakeholders—brands, gamers, and the industry at large. 

Yun Yip is Chief Commercial Officer at iion

 

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