Here's why brands find online gaming platforms as an effective avenue for ads

Advertising on the digital medium is picking up pace, and with that, there is a new sector which the marketers are taking notice of – online gaming platforms.

A report released by Group M on February 18 pointed out that consumers in a gaming environment tend to engage more with the advertising they receive.

The report highlighted the findings of a research by TapJoy, an advertising and app monetisation platform, which shows that gamers are more than twice as likely to pay attention to advertisements placed in mobile games at 41 percent, as compared to ads placed on the internet at 17 percent, in magazines or on billboards at 15 percent each.

In addition, gamers are willing to watch video ads for rewards. As many as 82 percent of APAC (Asia Pacific) mobile gamers said that this is their preferred method of receiving ads. With rewarded video, users can control when and how they can receive ads. This arrangement converts into a positive user experience with the brand.

According to an Internet and Mobile Association of India (IAMAI) 2019 report, while the contribution of advertising revenue to the overall online gaming market is low at Rs 2.24 crore, the space is seeing interest from advertisers due to the sticky young audience and a strong population of female gamers.

“The younger population is hardly watching television. So, for brands to reach this customer base, gaming is the logical way ahead,” said Sudhir Kamath, Founder, 9Stacks, an online poker platform.

Along with this, brands can connect with both male and female population through gaming platforms. A 2018 MMA (Mobile Marketing Association in India) and Pokkt Market Study states that 48 percent of Indian mobile gamers are female, of which, over 40 percent are over the age of 25. The study further says that mobile gaming is an effective way to connect with mothers and women in general.

Plus, online gaming platforms offer brands with different ways to advertise.

One way is through advertising models like advergames, where games are developed especially for a particular brand with deep integration of the brand into the game.

Nitesh Salve, Founder, Pocket52, an online poker platform, told Moneycontrol, "There is also in-app placements, where brands place their logos inside an existing game. Then there is on-site advertising, where banner ads are displayed on gaming sites."

He said that when a player on a gaming platform goes and clicks these banners, brands are charged based on the cost of per impression or per install.

“Lead cost starts from Rs 130 to Rs 500 based on different KPIs (key performance indicator),” he added.

Cost per lead means that the publishers receive money from brands when a mobile ad impression leads to a click and subsequent lead capturing.

There are many brands, especially digital companies, that are showing interest in advertising on online gaming platforms. The interesting aspect is that in the last two to three years, even FMCG brands have started investing in mobile game advertising, according to the POKKT study.