Levelling up: The business of advertising in gaming – Brand Wagon News

The world of gaming seems to have come a long way from a niche hobby or pastime to an economic powerhouse. The impact of this sector can be assessed from the fact that gaming displaced filmed entertainment to become the fourth largest segment, as per a FICCI-EY report. As per the report, almost a quarter of 455 million gamers in India engage with online games daily and the sector is expected to grow to Rs 38,800 crores by 2026.  

Apart from these numbers, the impact of this industry can be understood from the fact that recently LinkedIn, a business and employment-focused social media platform, also introduced gaming in their iOS version. In an article published by LinkedIn News, it was mentioned that the move was aimed to spark conversation and friendly competition among professionals worldwide. However, this rapid growth and impact seems to drive a seismic shift in how brands approach advertising. The gaming sector is believed to become a battleground for brands who have contended for the attention of highly engaged new-age audiences. 

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Unlike traditional ads, which seem to interrupt user experience, in-game advertisements offer both visibility and engagement. These ads are often integrated into the gameplay which is believed to create a more natural and less intrusive form of brand advertising. It can include virtual billboards, and branded items that fit naturally into the game world. One such example is the partnership between Monster energy drink and Death Stranding, an action game, where players can find the drink as consumables in private rooms which provides them a temporary 10% stamina boost.  

The rise of streamers 

To be sure, shooting games were India’s favourite which generated 24% of in-app purchase revenues and a five percent share of total downloads as per the FICCI-EY report. The report also revealed that Free Fire and BGMI were two top-ranked games in terms of monetisation in India in 2023. It is believed that gamers used several tactics while streaming which caused the rise of these games. In addition to that, streamers are believed to create content that impacts players’ decisions to purchase in-app products. “Influencers and game publishers have a huge number of subscribers, allowing game information to reach new and diverse audiences. Streamers curate authentic, user-generated, and relatable content that resonates with players, significantly impacting player perceptions and purchasing decisions. This helps in fostering top-of-mind recall for the game, builds brand love, and sustains daily users. Gradually, this approach increases the player base and ultimately creates a dedicated gaming community that engages with everything associated with the game,” Kashyap Reddy, CEO, co-founder, Hitwicket, told BrandWagon Online.  

Road ahead 

While the advertising landscape in gaming offers huge potential, it is also believed that a dark underbelly of challenges exists. Issues such as ad fraud, privacy concerns, and the need for high-quality integrations can pose challenges for both brands and developers. As the gaming landscape continues to evolve with newer technologies like virtual reality (VR) and augmented reality (AR), it is believed to open up engaging possibilities for brands.   

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