In this column, Gaurav Agarwal, Co-founder, Game stop writes how the online gaming industry is growing by the day and why are the most popular apps adding gaming for their users.
Online gaming is already larger than the global movie industry. It bagged USD 177.8 billion globally and USD 1.8 billion in India in 2020.
In-game advertisement holds a major share in these dollars. Simplicity of starting with ad monetization and the high demand of gaming inventory among advertisers contribute to this.
On the contrary, gamers don’t mind seeing ads between games. In fact, as per a Marketer report:
76% of US gamers prefer opt-in rewarded ads
And 24% like seeing mandatory ads
Some gamers even look forward to in-game ads because of the clear value exchange. For example, viewing an ad can get extra lives. According to a Tap joy report, 72% of gamers even understand the role of ads and even actively engage with them.
Likewise, game developers put extra focus on making the in-game ad experience less intrusive: for example, placing ads only at the transition from one level to the next within a game.
Non-gaming apps and websites can leverage games to grow revenue and engagement
A lot of non-gaming apps and websites are also interested in earning a cut of this billion-dollar pie. As a result, they have started integrating game centers comprising HTML5 games within their products.
You might have seen that apps like Amazon, The Times of India, Goibibo, and hundreds of others have a section of games. When users tap on games of their choice, they launch within these products directly – the games don’t need to be installed as standalone apps.
These companies have extremely varied core businesses, and yet games are prominently featured in each. So what makes them have a gaming section?
Here are some more reasons
Better user engagement: Having a game center allows apps and websites to keep users on their product longer. In a survey conducted by Game stop for its partners, adding games increased time spent by 15-40% for all apps and websites.
Additional source of revenue: Having a game section opens up a new revenue stream. In-game ads are highly engaging and advertisers love them. High demand for this inventory and better viewability result in high CPMs and attractive revenue.
Helps with retention: Games are often used as hooks to bring users back to the app or site. Users are extremely impatient and wouldn’t mind deleting an app within a few minutes of downloading it if the value proposition isn’t clear. Presence of games helps buy more time with those with affinity for gaming, and apps use them to create user journeys to bring them back
Better ranking on search and app stores: Metrics like average time spent are key in determining the search rank of apps and websites. Improved engagement metrics, thanks to the games, boost the chances of those adding games to appear in the top search results.
Push to core business: Just like retention, the publisher can use the gaming hook to push their core business. For example, an e-commerce app can give pre-defined targets to their users to achieve within games, which can unlock exclusive discounts. Unlike regular discounts extended to users, reaching a not-so-easy target within a game makes users feel like they have “earned” the discount, and results in 3-4X redemption rates
You must be logged in to post a comment.