Why Mobile Gaming is the Next Frontier for Mobile Advertising

Mobile games are on the rise in Australia and advertisers are paying attention. Here’s why advertisers are flocking to mobile games to win consumers.

Why advertise on mobile gaming apps?

Mobile gaming presents advertisers with a massive and untapped opportunity for winning consumers. This rapidly growing entertainment segment allows marketers to establish long engagement times that don’t come across as overt advertising to consumers. It also helps them cut through the advertising landscape where competition for consumers’ time and attention is fierce. 

Further, if used correctly, it can help advertisers generate additional revenue streams for their businesses. 

AdColony also found an uptick in time spent on mobile games.  Here are some quick statistics from their March 2020 survey:

  • 57% of Australians play mobile games daily
  • 67% say they’ve been playing more mobile games since March 2020 
  • 47% say they’ve downloaded new games with their smartphones
  • 40% of completely new gamers since the start of the outbreak
  • The global market for mobile gaming was worth $98 billion in 2019
  • Mobile gaming is expected to account for the largest proportion of total worldwide gaming revenue by 2021 

Australia also belongs to the top 50 markets for mobile games ranking 28th in 2019, according to All Correct Games. This makes the country one of the biggest and most profitable mobile gaming markets in the world.  Subscribe to Mobicity for more information on mobile gaming trends in APAC and around the world. 

Aside from rapid growth and market share, mobile gamers also make up a fairly large demographic. The Digital Australia 2020 report found that 78% of Australian gamers are 18 years or older with the average age hovering at 34 years.

According to ironSouce, 66% of mobile gamers enjoy some influence over the purchasing decisions of family, friends, and colleagues, being nearly 25% more likely to have this kind of influence than their non-gamer counterparts. 

This should be of interest to marketers that prefer to advertise in-app instead of in-game. Mobile gamers’ increasing influence and purchasing power indicate that advertisers should make in-game ads.

Why aren’t more marketers on mobile gaming apps? 

Mobile gaming is a fairly young entertainment segment despite its rapid growth, which is why the advertising industry still can’t fathom its sheer size and scale of gaming, particularly in terms of how mobile gaming surpasses other, more established entertainment segments. 

Experts predict that technological involvement will benefit mobile gaming more than any other entertainment segment over the next few years, and that it will continue to overtake more popular channels for advertising. 

Mobile gaming presents untapped potential for many deeper engagement precisely because the landscape is still relatively uncluttered compared to other channels. 

Branded games, in particular, allow marketers to engage consumers in a fun and memorable way. They let you promote a brand or business without it feeling like overt advertising. When you gamify the brand experience, consumers learn to love your brand by association.  

But this can only happen if you are able to develop an arcade of games that speak to your target market and help you meet business objectives (i.e. acquiring an additional revenue stream for business, etc.).   

Luxury brands like Givenchy Beauty and Tatcha have done video game collaborations with The Sims and Animal Crossing to promote their products while Louis Vuitton and Hermes have released their own branded games to connect with existing consumers, reach new ones, and boost product sales. Gucci opted to build a branded game within its own app, Gucci Arcade. 

Tips for effective gamification marketing 

WARC offers these tips for marketers and business owners who’d like to add gamification to their digital strategies:

  • Learn from the success of other games and games publishers
  • Engage your target audience by speaking their language and reflecting their values
  • Leverage the relationship between gaming livestreamers and their followers
  • Keep brand safety in mind when co-branding and doing video game collaborations

Mobile gaming is dynamic and rapidly changing. Subscribe to Mobicity today for the latest news and updates on this exciting entertainment segment.  

Clarence James

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