Gaming – Are brands missing a big opportunity?

There is still a misperception that gaming is a niche medium that reaches a niche audience. To put it bluntly, nothing could be farther from the truth. Gaming is huge and cuts across all demographics. In fact, Nielsen is now calling this channel the 5^th network. The Nielsen data shows that consumers spend around 64 billion minutes per month using console video games. More minutes than consumers spend with the CW network and gaming is now closing in on NBC.  Need more proof, 65% of US households play them and there are 174 million gamers. Additionally, there is very little multi-tasking, most gamers welcome advertising (they make the game more realistic) and there is strong brand recall and consideration lift.

So how do you get started? There are several things marketers need to think about when they enter this space. The first is to decide whether you are going to go the core gaming route or the casual gaming route. Both are huge, but reach entirely different audiences. Core games are predominantly men 12-35 and casual gamers – most played on a PC or Mac vs. console – are women over 40. For this piece, I am going to focus on core gaming and there are three main console platforms and three main advertising opportunities.

Platforms

• Xbox 360: Microsoft’s gaming platform, 11.6 mm units sold in the US, 17 mm Xbox live accounts, ads sold through Massive gaming, Project Natal coming out later this year to take on Wii
• Playstation 3: Sony’s gaming platform, 5.7 mm sold in US, Blu-Ray is a key feature, ads sold through IGA and Double Fusion
• Wii: Nintendo’s gaming platform, 19 mm units sold, more casual game play, only static in-game opportunities
• Other platforms include hand-helds and the two major devices are Nintendo DS and PSP

Advertising opportunities

• Static in-game advertising: The strength of in-game ads are that they are hard coded into the game which allows for deeper integration and your brand lives in perpetuity. The con is that there is a fairly long lead time (8-12 months) and the cost will most likely be north of $200K as an entry point.
• Dynamic in-game advertising: The greatest strengths are flexibility, cost, speed to market and the most advanced ad platform is Massive which is aligned with Microsoft. As soon as an Xbox owner connects his console to the web, Massive dynamically serves ads that cover up generic brands and ads will appear on billboards, vending machines and at sports venues. Massive offers over 60 titles and marketers can target by creative, time & day and geography. Dynamic in-game advertising is a great way to jump into the gaming market.
• Advergaming: The benefit is simple, imagine someone paying to get your ads. This is exactly what Burger King did when they launched three Xbox games for $3.99. BK created Big Bumpin, PocketBike Racer and Sneak King and sold millions of copies.  However, this strategy is not for the faint of heart as the lead time is somewhere around 18 months and the price tag is in the seven figures.

In conclusion, gaming may or not may be right for your brand, but it is a great opportunity to stand out, connect with your audience and most importantly, become part of their everyday life – because gaming isn’t just a medium, it’s a lifestyle.