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Ad Opportunities in Gaming

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Ad Opportunities in Gaming WARC DATA Global Ad Trends, July 2020 1. Mobile gaming offers a rich 3. Streaming is, for younger 5. e-sports is becoming opportunity to capture a broad audiences especially, the 'new established in Asia, with a spectrum of users who might not prime time’. Twitch alone draws second-gen evolution into even think of themselves as 1.9m – predominantly Gen Z – female-led, mobile competition gamers. Mobile gamers are casual viewers per day, mostly after 7pm. presenting new partnership players and skew older than Two-thirds of 18–25 year-old opportunities. Brand investment average; ‘gamer mums’ are gamers would rather play video is expected to reach $844m influential in purchasing decisions games or watch gaming content globally this year despite great and brand recommendation. than watch TV. economic turbulence. Media rights will also be core to future 2. Mobile gamers understand the 4. COVID-19-induced lockdowns revenue gains, and a flurry of value exchange of advertising. resulted in a spike in streaming merger and acquisition activity is Most are fine with viewing consumption, particularly on expected in the near term. advertising if it keeps the game Twitch. Within e-sports, however, free-to-play. Ads in mobile games original audiences consolidated have no discernible impact on while new viewers proved hard to churn, and are far more effective woo, this despite more content than banner advertising when being broadcast in lieu of a inserted programmatically. traditional sporting calendar. WARC DATA Global Ad Trends, July 2020 Gamers worldwide Average gameplay session (h:mm) Ads per mobile gaming session Mobile gaming Streamers e-sports Generally free-to-play (F2P) Can be regarded as a form of Competitive gaming which draws games, which are ad supported influencer, they broadcast live or mass live and VoD audiences. but also generate publisher on-demand gaming content Games are traditionally PC- and revenue from in-app purchases through platforms such as console-based but there is a Mobile-only gamers (IAP) or e-commerce elements. Twitch, YouTube and Facebook new, growingLorem market ipsum for mobile Gaming. Top streamers amass e-sports, particularly in Asia. Ad formats include videos, followers in the tens of millions. banner and native ads. Reward- Brands can partner with teams or based videos, whereby a player Advertising opportunities here individual players through receives an in-game reward for encompass pre/mid/post roll sponsorship deals in much the Brand investment in e-sports (2020) watching a video ad, is popular video as well as sponsorships same way as conventional sport. and effective within the genre. and host-read ads. WARC DATA Global Ad Trends, July 2020 Age 10-15 16-20 21-25 26-30 31-35 35-40 41-45 46-50 51-65 (Years-old) (11.5%) (11.5%) (14.1%) (13.3%) (11.9%) (11.1%) (8.7%) (7.5%) (10.3%) Male Female Gender (54.0%) (46.0%) Income Low Middle High N/A group (26.2%) (37.5%) (31.4%) (4.9%) Unemployed Full-time Part-time Student Other Employment (57.1%) (9.0%) (9.5%) (6.3%) (18.1%) Live with partner Living Live with partner and children Live with parents Lives alone Other and no children situation (41.5%) (20.5%) (12.6%) (10.4%) (15.1%) 0% 20% 40% 60% 80% 100% Note: Based on consumer research across 30 markets, anyone who has played video games on PC, console or mobile in last six months. SOURCE: Newzoo © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gamers are casual players and skew older than average; ‘gamer mums’ are influential in purchasing decisions and brand recommendation. Mobile gamers understand the value exchange of advertising. Most are fine with viewing advertising if it keeps the game free-to-play. Ads in mobile games have no discernible impact on churn, and are far more effective than banner advertising when inserted programmatically. WARC DATA Global Ad Trends, July 2020 Mobile gaming Any device Smartphone PC/Laptop Games Console 100% 89% 2.9bn people play games on 80% 82% their smartphone, equivalent 66% 71% 60% to seven in ten (71%) internet 63% users. This is up from 63% in 40% 45% 30% 2015 – an absolute increase 27% of one billion worldwide. 20% 0% In total, 3.4bn people play 2015 2016 2017 2018 2019 games on any device, a rise of 662m since 2015. Yet the proportion of internet users gaming has actually fallen 84% 76% 86% 83% 73% 76% 56% 68% 70% 52% during this period, to 82%. 43% 40% 46% 39% 33% 21% 26% 44% 24% 31% While the fall mirrors wider device trends over recent years, it is also a reflection of the rise in the consumption of gaming content, with would- be gamers now watching others rather than playing themselves (see page 15). Note: Based on survey of internet users aged 16-64 across 46 different markets. Q: Which of the following do you use to play games? SOURCE: GlobalWebIndex © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming 34% Search 32% TV A full 29% of internet users (and 35% of gamers – 1.2bn) 23% Social media are mobile-only, rising to one Male 45% Female 55% in three in Asia Pacific and the Middle East and Africa. Israel 48% Search (46%), Singapore (44%) and Thailand (42%) record the Gen Z Millennial Gen X 37% Social media 17% 41% 34% highest domestic rates. 36% Consumer reviews Baby Boomers 8% This cohort skews older than the average gamer, and is 56% Free delivery comprised mostly of females Asia Pacific – 33% (55% vs. 46% for all gamers). MEA – 32% 43% Coupons and discounts North America – 26% 28% Next-day delivery They are more casual gamers Europe – 25% – playing during idle time (on Latin America – 21% the commute, for example) – and do not engage with 48% Be eco-friendly typical gaming culture; only 45% Be socially responsible one in five (13%) visits Twitch, for example. Instead, mobile- 43% Listen to feedback only gamers typically spend 35 minutes longer watching linear TV than other gamers. Note: Based on survey of internet users aged 16-64 across 46 different markets. SOURCE: GlobalWebIndex © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming Play mobile games daily Describe themselves as 'gamers' Many mothers are committed 100% gamers but do not relate to the term – this is particularly true in Western markets. 77% 80% 74% 75% 74% As a cohort, ‘Gamer Mums’ 68% are seen to be more receptive to advertising. One in four 60% 64% (26%) appreciates advertising that exposes them to something new, and one in 40% 46% 46% 44% five (21%) likes seeing ads from their favourite brand. 36% Rates among other are 20% 20% and 17% respectively. This group is also influential; 48% offer advice to friends on 0% purchases (compared to 36% Total US UK France Germany of others), and a third (33%) recommend products on Note: Based on survey of women aged 25-54 who play mobile or video games and have at least one child at home under the age of 18 (n=4,002). social media (vs. 25% others). SOURCE: Activision Blizzard Media © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming Women Men Of the 1.33bn gamers across 1–7 hours 59.6% 48.6% Asia, 38% are female – equivalent to 500m people 8–14 hours 19.4% 24.8% and growth of 18% from 2017. Penetration rates vary 15–21 hours 11.5% 12.4% across the region, from 45% in China, to 40% in Japan and 22–29 hours 3.6% 4.2% just 18% in India. 30+ hours 6.0% 10.0% Of the female gamers in Asia, 95% (473m) play on a mobile; 0% 10% 20% 30% 40% 50% 60% 70% they accounted for 35% of all mobile gaming revenue in the region last year, a share that is expected to rise closer to 39% in 2020. In China alone, Less than 1 hour 49.1% 50.9% women spent $6.6bn within mobile games last year. 1–3 hours 62.7% 37.3% Aside from casual mobile 3+ hours 63.3% 36.7% gaming, women are also driving mobile e-sports in 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia, with female-only teams and leagues emerging fast. SOURCE: Google, Niko Partners © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming Number of downloads 30 days after 200th case (millions) % change compared to 30 days before 600 120% Downloads of mobile gaming apps hit 847m in a month across the US and China 500 100% alone. This compares to 60bn 89% gaming app downloads globally during 2019. 400 80% Data show that 96.8% of Chinese female mobile 300 60% 51% gamers spent more time playing during lockdown, and 36% 78.0% spent more money in- 200 32% 40% game than they had before. 24% 18% 17% Overall, mobile gaming 100 29% 20% recorded the greatest rise in 22% share of online time in China during lockdown. Almost nine 0 0% in ten Chinese respondents to US China Great France Germany Japan Italy South Spain a Niko Partners survey stated Britain Korea they would game for longer after lockdown as a result. Note: Chinese data is Apple App Store only, all other markets include Google Play. SOURCE: Sensor Tower © Copyright WARC 2020. All rightsreserved. WARC DATA Global Ad Trends, July 2020 Mobile gaming Ad revenue IAP revenue EMEA 36% 64% They provide 42 cents in Americas 45% 55% every dollar on average, with APAC 46% 54% in-app purchases comprising China 65% 35% the bulk of publisher income.
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