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Word of Mouth: Influencer Marketing in the Gaming Space

George Miller

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Word of Mouth: Influencer Marketing in the Gaming Space
Reading Time: 3 minutes

 

Traditionally, Word of Mouth Marketing was considered as a free form of advertising or promotion, except today it’s no longer free. Nonetheless, nothing speaks volumes other than “Influencer Marketing”.

You might be surprised to learn that the gaming industry today is worth over a hundred billion dollars. According to new figures, in 2018 alone, the gaming industry generated an astounding $135 billion amassing a growth of 10.9% from 2017. This year, it is set to make $152.1 billion in global earnings.

These numbers say a lot about how the video game industry is a tough market to crack particularly because, with figures like these, the competition is very stiff, trends are fast-changing, and innovation is at an all-time high. Numerous companies have peaked in prior years but had failed to sustain that success because they were too late to adopt the latest technology or they ran out of creativity to improve their existing game offerings. But today, nothing says “viral” than getting your product or service out through viral marketing.

Live Video Game Streaming

The astronomical growth of the video game industry has opened doors to varied forms of businesses, marketing, and advertising, one of which is live video game streaming. Whoever said people hated watching other people play video games? That’s certainly not Twitch.

Twitch, a live streaming video platform, is a subsidiary of Amazon that focuses primarily on the gaming community. Twitch provides an avenue for gamers and gaming enthusiasts to share and watch their gameplays. Aside from hosting live streams, Twitch is an interactive platform that allows its community to connect with fellow players via Twitch Chat or to leave comments in real-time.

Much like YouTube, Twitch was successful in diversifying its revenue streams. Twitch monetizes its platform through advertisements, subscriptions, and merchandise sales. On average, Twitch has more than 15 million daily active users, making it the leading live video game streaming service in the world to date.

The success of Twitch has drawn in other major players such as YouTube and Facebook. YouTube Gaming Live, for instance, is a specialized channel that enables users to share their live gameplays and stream other people’s gameplay videos. Facebook, on the other hand, has created Facebook Gaming, which similarly, allows users to stream, broadcast, and share their favorite games on the Facebook app. Nonetheless, recent statistics show that Twitch still holds as the dominant player in the live game streaming industry accounting for the largest viewership in comparison to Youtube Gaming Live and Facebook Gaming.

Breaking Into the Limelight

With the ever-increasing number of audiences and patrons, we expect steady growth in the live game streaming industry. A strong and loyal fanbase is one of the strengths of the gaming community. And with people interested in watching gameplays after gameplays of their favorite streamers, and with spectators willing to spend just to see their teams battle it out in big E-sport tournaments, only means one thing in the world of business–profits.

Nowadays, video games are no longer just a hobby, it’s a career. Just like how Instagram stars and Youtube vloggers are a thing, game influencers are celebrities in their own playing field. You have probably heard one too many times how someone broke into the millionaire’s club while playing video games and it’s true, they’re living the dream! Gaming influencers with a significant following have caught the eye of both local and multinational companies reaching out to these personalities to get them to sign a deal.

And in this industry, word of mouth holds more power and influence to convert mere spectators into purchasing viewers. A study by Google showed that 90% of avid gamers would turn to Youtube for game reviews, tips, and video game suggestions with a 64% conversion rate. No wonder streamers are raking in millions of dollars from advertisements and promotions.

Consider the case of PewDiePie as an example. PewDiePie is the top-grossing game influencer today with 101 million subscribers on YouTube and an estimated net worth of $30-$50 million. His income streams all came from online advertisements, collaborations, referrals, and online merchandise sales. His career peaked in 2013 when he was the first YouTuber to reach 15 million subscribers.

The rise to fame of game influencers disrupted the way we do traditional advertising. And in an industry that continues to grow and expand in magnitude, game influencers hold a significant role both in the gaming community and in the business scene.

Truly, “word of mouth” has never been this powerful (and expensive!) as it is today, but as long as influencers are maintaining the quality of their content and are keeping the trust of their subscribers, influencer marketing will continue to move in leaps and bounds.

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Raketech: Interim report Q3 2019

George Miller

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Raketech: Interim report Q3 2019
Reading Time: 3 minutes

 

THIRD QUARTER 2019

  • Total revenues amounted to EUR 6.0 million (EUR 7.0 million) representing a decrease of 15.1%.
  • Organic growth amounted to -17.9% (28.6%).
  • Adjusted EBITDA decreased by 34.2% to EUR 2.7 million (EUR 4.1 million), corresponding to a margin of 45.5% (58.7%).
  • Adjusted operating profit amounted to EUR 1.5 million (EUR 3.7 million), corresponding to a margin of 25.1% (52.4%).
  • Profit for the period decreased by EUR 0.5 million from EUR 1.7 million to EUR 1.2 million.
  • Earnings per share before dilution amounted to EUR 0.03 (EUR 0.05) representing a decrease of 38.5%.
  • NDCs (New Depositing Customers) decreased by 0.2% to 26,782 (26,837).

FIRST NINE MONTHS OF 2019

  • Revenues increased by 0.7% to EUR 18.1 million (EUR 17.9 million).
  • Organic growth amounted to -3.7% (22.6 %).
  • Adjusted EBITDA decreased by 8.6% to EUR 9.0 million (EUR 9.9 million), corresponding to a margin of 50.0% (55.1%).
  • Adjusted operating profit amounted to EUR 6.2 million (EUR 8.9 million), corresponding to a margin of 34.4% (49.7%).
  • Profit for the period amounted to EUR 7.5 million (EUR 2.8 million) representing an increase by 165.9%.
  • Earnings per share before dilution amounted to EUR 0.20 (EUR 0.10) representing an increase of 100.6%.
  • NDCs (New Depositing Customers) increased by 26.4% to 80,364 (63,599).

EVENTS DURING THIRD QUARTER 2019

  • Casumba Media Ltd., a Maltese registered media company, was acquired during the quarter for the agreed purchase price of EUR 2.0 million with the possibility of additional earnouts based on certain performance measures. Casumba offers an extensive amount of affiliate websites in the Japanese market and through the acquisition Raketech gets an immediate footprint in Japan as an emerging market in iGaming.
  • During the quarter Raketech has repurchased in total 108,000 own shares. The share repurchases have been carried out within the buy-back programme authorised at the annual general meeting held on 8 May 2019.

SUBSEQUENT EVENTS AFTER THE END OF THE THIRD QUARTER

  • On 1 October it was announced that the current Chief Financial Officer, Andreas Kovacs, has been appointed as Director of Business Development, a new role, and Måns Svalborn will join as CFO. Måns will officially take over as CFO on 1st December 2019.

CEO MICHAEL HOLMBERG COMMENTS ON THE QUARTER

“In the third quarter, both revenues and the number of NDCs increased compared to the previous quarter, despite a continued challenge in the Swedish gaming market. We have a positive underlying revenue development with an increased revenue share, which drives recurring revenues – however, this will come into full effect during the upcoming years. During the quarter, we continued to focus on global expansion, with concrete progress in both Japan and Germany. All in all, this gives us confidence for the future, even though the result for the third quarter is unsatisfactory.

Our products continue to generate high traffic levels for our partners. The underlying NDC development is on par with the previous year, despite changing conditions in the Swedish market. The NDC growth of 7 percent compared to the second quarter shows strength in customer acquisition and traffic. I am glad that we can show a strong operating cash flow for the quarter of EUR 3.2 million, which is 41 percent higher than the corresponding period last year.

For the first time ever, Raketech’s operations outside of the Nordic region accounted for 10 percent of the revenue mix, with contributions from Germany, Canada, New Zealand and Japan amongst others. This is thanks to the ongoing efforts to expand geographically.

In brief, the expansion strategy means that we will operate in at least three continents, and each continent will represent at least 10% of the company’s revenues over time. This is a clear strategy that we are executing. I am certain that we will be successful in building a global company, with products in sports and gaming that serves operators, media companies and other businesses with a focus on responsible and user-focused services.”

PRESENTATION FOR INVESTORS, ANALYSTS AND THE MEDIA

CEO Michael Holmberg and CFO Andreas Kovacs will present the report and answer questions in an audiocast at 9.00 a.m. CET on 21 November. The presentation will be held in English and can be followed online via https://tv.streamfabriken.com/raketech-q3-2019. To participate by phone, please dial +46 8 5664 2703 (SE), +44 3333 009 263 (UK)

REPORT LINK

The report is attached to this press release and also available at https://raketech.com/investor/

 

About Raketech Group

Raketech is a leading online affiliate and content marketing company, specialised in comparison services for sports and gaming, online guides, communities and social media products in primarily the Nordic region and the UK. Through some 20 flagship brands, Raketech guides sports and gaming enthusiasts to the best possible services, while also delivering high-quality traffic and leads to its partners. Raketech grows both organically and via acquisitions and operates its business in accordance with a clear framework for responsible affiliate marketing services. The company’s shares are listed in Nasdaq First North Premier Growth Market with ticker RAKE. Erik Penser Bank AB is the company’s Certified Adviser ([email protected] / +46 8 463 83 00).  For more information, visit www.raketech.com.

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Highlight Games Announces Extension Of Italian “Serie A” Rights

George Miller

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Highlight Games Announces Extension Of Italian “Serie A” Rights
Reading Time: < 1 minute

 

London-based video virtual sports specialist Highlight Games Limited today announces that it has extended its rights agreement to use archive footage from the biggest clubs in Italian Serie A in its betting products globally.

Highlight Games’ premium SOCCERBET single match and league products are exclusively licensed and ADM approved.  Following the extension of rights, SOCCERBET will be available to customers in additional territories both for retail and online implementations.

SOCCERBET is currently available in Italy and live with leading operators including Eurobet, Sisal and Lottomatica, where it is the #1 performing virtual sports product across all channels by both turnover and GGR.  The game will also be live with Snaitech, Goldbet and SKS365 in Italy before the end of 2019.

Highlight Games’ Italian Serie A SOCCERBET games can be viewed here

Stewart Whittle, Founder, Highlight Games, said, “The Serie A version of SOCCERBET has already proven to be hugely popular with players in Italy, and Highlight Games is delighted to be further extending its availability globally for betting and lottery operators.  In offering players the unique opportunity to bet on genuine archive footage with real commentary Highlight Games has developed a product which is changing the way in which customers engage with and bet on virtual sports.”

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GeoComply’s Anna Sainsbury Makes List of iGaming’s Most Influential Women of 2019

George Miller

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GeoComply’s Anna Sainsbury Makes List of iGaming’s Most Influential Women of 2019
Reading Time: 2 minutes

 

GeoComply, the global leader in compliance-grade geolocation solutions, is extremely pleased to announce that its founder and chairman, Anna Sainsbury, has been named as one of iGaming most influential women of 2019. The list, compiled by Clarion Gaming and published in iGaming Business, aims to showcase the industry’s most accomplished women and inspire others to progress their careers within the industry.

“This year’s list features women who have played key roles in transformations within their organisations, women who’ve been champions of diversity and women who’ve raised the profile of the entire sector itself,” said Stephen Carter, editorial director of iGaming Business.

Added Ewa Bakun, director of industry insight and engagement at Clarion Gaming and a member of the judging panel: “We have seen the topic of diversity and inclusion evolve over the last few years from a truly niche one to the mainstream and every major organisation in the gambling sector, which is still male- dominated if we look at the board levels, understands now that it’s as much a commercial imperative as it is a moral one.“

“The unprecedented market growth we have seen in our industry since the repeal of PASPA has opened the doors for innovation and change,” said Anna Sainsbury of GeoComply. “It is an honor to be recognized as a leading figure through that growth and also an honor to work with the many women at GeoComply, across all levels and functions, as we build on a culture of equality and diversity.”

About the List

The list was compiled from nominations received by a survey conducted on SurveyMonkey between July 22 and September 10. The survey was promoted to those working within gaming or related sectors.

The entries received were then assessed by a panel of judges chosen from across the industry. The judges were Ewa Bakun, director of industry insight and engagement at Clarion Gaming; Andrew Bulloss, partner at Odgers Berndtson; Kelly Kehn and Christina Thakor-Rankin, co-founders of All-in Diversity Project; Suzi Read, head of talent development at Kindred; Holly Straker, inclusion, engagement and events executive at Sky Betting and Gaming; and Helen Walton, founder and CCO of Gamevy and Gluck.

About GeoComply:
GeoComply is a global leader in geolocation technology. Since launching in 2011, GeoComply has quickly become the iGaming industry’s trusted solution for reliable, secure, and accurate geolocation services. GeoComply currently supports regulated online casino, poker, sports betting, lottery, ADW, and DFS operators in 44 US states to ensure compliance with state and federal regulations. For more information, please visit GeoComply.com.

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