Gaming
How Fashion Wove a Successful Blueprint for In-Game Advertising
By Lisa Hau, COO of Bidstack
With 60 percent of retail transactions now taking place online (compared to around 10 percent as recently as last year) the “retail apocalypse” that many skeptics never thought possible is now a reality. This is not just an e-commerce wave — people are choosing to shop differently now and all signs indicate this behaviour shift is permanent.
This is fundamentally changing how luxury, retailers and CPG brands reach consumers. Out-of-home advertising is being replaced with “shoppable media” advertising via social media, display, and more, with media spends expected to increase exponentially.
But for creative and innovative retail brands that want to stand out, there is an option that connects them with new and existing generations of engaged consumers — in-game advertising. Despite the impact of the pandemic on many industries, the gaming industry has reversed declining trajectories and came out as one of the strongest industries in 2020. With the introduction of two next-generation consoles as well as major M&A consolidation activity involving Bethesda and Codemasters (US$8.5B in M&A spend), in-game advertising is fast emerging as a lucrative medium for brands to adopt. Of the in-game advertising early adopters, one sector, in particular, has captured the essence of doing it well and provided a blueprint for others: fashion.
Luxury brands such as Burberry and Gucci have recognized the cultural significance and the mass appeal of gaming, and have embarked on multichannel gaming campaigns that have gamers spending frequently on physical and digital products, indulging in branded experiences within games, and clamoring after the products on display from the industry’s most-watched influencers.
Adidas partnered with Tyler Blevins, better known online as Ninja, who has nearly 21 million followers across social media platforms, and 22.3 million YouTube subscribers that tune in to watch him play. While he is at the top of the gaming influencer food chain, Twitch, which clocks monthly users at 140 million, has a bevy of game-playing stars likely to partner with brands that want to celebrate and invest in creators and their audiences. The second screen audience has proven their loyalty results in a purchasing power retail product brands can’t afford to lose out on over the next several years. Dressing, feeding, and accessorizing these powerful online players is a multi-layered marketing approach, which fashion has already shown is a powerful sales and branding strategy.
Influencers are just one piece of the multichannel experience fashion has practically perfected within in-game advertising. Louis Vuitton was at the forefront of real-world and in-game campaigns when they signed a two-year deal with the popular online game League of Legends (LoL), where they created in-game skins for player avatars, as well as a ready-to-wear collection and trophy travel case for the LoL Championship in Paris. Vuitton didn’t stop there; their Final Fantasy 13 heroine was so popular that she became a full-time digital model for the brand, bringing the advertising investment in the campaign full circle and fostering long-term relationships with the game’s most loyal audiences.
Further illustrating the increasingly symbiotic relationship between fashion and gaming, Balenciaga released its Fall 2021 collection in the form of an original video game – “Afterworld: The Age of Tomorrow.” Allowing the player to walk through the game filled with characters in Balenciaga wear, the environment is almost Cyberpunk 2077-esque – opening the world of fashion to gamers, and the world of gaming to fashionistas. British luxury fashion house, Burberry, has also adopted an interactive approach by showcasing its Spring 2021 collection by partnering with Twitch. The engagement led to 40,000 concurrent viewers, providing the brand access to a gaming demographic that is heavily invested in fashion, both virtually and in real-life.
Fashion has also encouraged gender parity in gaming, which has traditionally been a masculine pursuit up until now. The Far East represents an interesting case study, where women account for 71 percent of China’s luxury spending. What is interesting is females also comprise 58 percent of the country’s total gaming population – a whopping 280 million gamers. With the Chinese female millennial spending an average of US$5,000 annually on luxury goods and a serviceable available market (SAM) of US$1.4 trillion, it comes as no surprise to see fashion brands prioritising gaming as a way to capture market share.
In-game advertising has a surprisingly low barrier-to-entry. For example, brands are incorporated into the environments of certain games that mimic real-world advertising slots such as billboards, race car skins, or football jersey “sponsorships.” Bidstack’s work with Burberry in Ubisoft’s AAA free-to-play battle royale game Hyper Scape is a high impact illustration of how the open world genre lends itself to in-game advertising.
However, fashion offers some of the most compelling use cases of how complex and pleasing the visual creativity of integrating a product into a gaming experience can be as reflected in the success of DREST, which has reimagined the shopping experience. One of the biggest appeals of video games to gamers is the endless possibility to customise, and fashion brands were quite possibly the best to capitalise on the appetite of gamers to differentiate themselves, none other than in-game itself.
Fashion brands took a leap on this new medium, but did so by deeply understanding the relationship between players and games, respecting the escapism of the gaming experience, and seizing the opportunity to build creative activations for players, including their professional gaming heroes. Fashion has shown that the world of retail products and the experience of gaming can have a symbiotic relationship that deeply entertains and benefits the end consumer, as well as the brand itself.
About Lisa Hau:
Lisa joined Bidstack in May 2020 with 15 years experience most recently at WPP a FTSE 100 where she led investor relations and Jefferies where she was an equity analyst heading up coverage for European Media and Internet. Lisa oversees the day to day operations for Bidstack and works closely with the management team on strategy, corporate and business development. Lisa graduated from the University of Technology, Sydney in 2006 and is a qualified Chartered Accountant.
Gaming
The mobile gaming market is growing and attracting new companies. GAMIVO is the latest example
Usually, consoles and PCs come to mind when discussing the gaming industry. The mobile sector is often treated as a child of a lesser god, even though it generates almost as much revenue as console and PC combined. Some companies can see this potential. For instance, the e-commerce platform GAMIVO has recently entered the mobile market, allowing players to buy in-game items cheaper.
Back on course
The entire video game industry has evolved incredibly, but the most spectacular has been the growth of the mobile sector. It expanded from 36.9 million dollars in 2016 to 93.2 billion in 2021. Unfortunately, the gaming market suffered from a decline that stemmed from the overoptimism of the pandemic era. As a result, the mobile gaming industry revenues dropped to 92.2 billion in 2022 and to 90.5 billion in 2023. Recent information has indicated this was a necessary correction rather than a long-term trend.
The latest Newzoo report, issued in August 2024, shows that the industry is on the right track again. According to analysts, the mobile sector will generate revenues of $92.6 billion, representing +3.0% growth year-on-year. It’s nearly half of the entire gaming industry.
Billions of players
Revenues are crucial, but they only show part of the story. To fully understand the size and potential of mobile gaming, it’s necessary to consider the number of players, which constantly grew even when revenues dropped. Newzoo estimates that it will reach 2.8 billion in 2024. It means that almost twice as many people play on mobile devices than on PCs and consoles combined. Currently, every third person on Earth plays on mobile devices, and there’s still space for further growth.
“There are emerging markets where smartphones and mobile networks can expand, providing new potential players. Furthermore, this type of entertainment has a low entry barrier because most popular games are free and don’t require high-end devices,” explains Mateusz Śmieżewski, the CEO at GAMIVO.
One hobby, different habits
GAMIVO is an example of a company that has recently joined the party to get a piece of the mobile pie. “We examined the mobile market for a very long time, trying to find a suitable place for us. It’s essential to understand that mobile gaming and mobile gamers differ from their PC or console counterparts. You can’t do the same things you do with PC and consoles and hope to replicate your success,” said Mateusz Śmieżewski.
Studies confirm this observation. Average PC and console players spend about 2.1 hours a day in virtual worlds. It’s half an hour more than mobile gamers. However, things get interesting when we take a look at playtime per week, which is the same for mobile and console (5.4 hours) and slightly longer for PC (5.7 hours). Moreover, typical PC and console owners play 2.6 and 2.7 days a week, respectively, while mobile players play 3.4 days per week.
Those statistics prove that PC and console players are more dedicated, spending more time in games’ worlds once they enter them. However, mobile gamers prefer shorter but more frequent sessions. They play while commuting or have a short amount of free time.
“Mobile players are more willing to uninstall games and give another title a chance. Hence, the gameplay has to be captivating and designed to provide quick but intense sessions.
Furthermore, even though the average weekly playtime is identical to PC players, many mobile players don’t think of themselves as gamers,” clarifies Mateusz Śmieżewski.
Another major difference regards the way in which revenue is generated. PC and console games traditionally represent the premium model, where players buy the game. Most popular mobile releases are free and generate revenue with microtransactions. Almost all titles allow players to spend their real money on virtual coins, crystals, and other items that can be used to unlock additional content or reduce cooldowns.
Entering the mobile market
Those contrasts and nuances scare most companies from the mobile market. Let’s see how GAMIVO has coped with this.
“We decided to launch a new product category dedicated to mobile gamers. Our model allows them to top up in-game accounts cheaply. As a result, they can save up to 30% on buying virtual items, upgrades, and other content. The GAMIVO offer includes the most popular mobile titles, such as Genshin Impact and PUBG Mobile, and still extends,” describes Mateusz Śmieżewski.
“We dedicated a lot of time to research and analyses. Also, the development process required a lot of work to provide GAMIVO customers with safe transactions and a user-friendly environment. The first reactions are very positive, confirming our belief that our decision was right and there is still more space in the mobile game market,” concludes the GAMIVO CEO.
Gaming
AI Gives Horses for Courses True Meaning in ‘Owners Club’ Racing Game
Invincible GG, a groundbreaking competitive gaming platform and technology company, has outlined the latest AI developments of its interactive mobile horse racing game, Owners Club, which is set to provide a new injection of interest into the ancient sports of kings.
Following a successful game launch in Q3 2024 and activations at the Doncaster St. Leger and York Ebor festivals, thousands of Owners Club players have started to formulate an expansive game world that gives the masses the true feeling of horse ownership, breeding, and racing experiences.
Being founded on the latest in AI and Web3 technologies allows the game to evolve with more nuance over time, with the former being implemented to enhance users’ strategic horse development and create developing traits and performance benefits that can lead to further self-training opportunities in-game.
Each horse has its own unique, nuanced genetics and racing traits. These can be trained via evolving in-game activity—which will include collaborative intelligence in future releases and passed on to future colts and fillies to create racing dynasties that will stand the test of time while also bringing in lucrative in-game winnings and potential syndicate stud earnings.
Further features include an AI-powered event simulation engine (instead of predetermined RNGs), and sophisticated algorithms that factor in horse health, jockey decisions, and environmental factors that ensure Owners Club races maintain tension and excitement throughout, just as racing fans in the real world would experience from the grandstand.
Jonathan Strause, Invincible GG CEO, said: “Gamers of today want more than static, insular game worlds. They’re looking for immersive experiences in evolving ecosystems, multiplayer competition, and the feeling that they’re fully integrated into the game. Owners Club is offering just that for both current racing enthusiasts and the next generation of racing fans.
“With unrivaled AI integration into the theoretically unlimited stable of in-game horses, combined with back-end Web3 technology that empowers players to easily realize what true thoroughbred ownership and training feels like, Owners Club players can forge their own relationship with horse racing via the gamification of training, racing, and trading in the app, which can only help the future engagement of this ancient pastime.”
Owners Club will be showcased to its biggest live audience yet at the QIPCO British Champions Day on 19th October, 2024, with live races broadcasted as-live to screens around Ascot, with various prizes on offer for the winning owners.
Gaming
Evoplay introduces action-packed skill-based title Adrenaline Rush to wider operator network
Evoplay, the award-winning game development studio, is expanding the availability of its flagship 3D racing title Adrenaline Rush to all of its operator partners, following a successful exclusive release.
Adrenaline Rush combines the thrill of high-speed racing skill-based gaming mechanics, providing an immersive experience for players who enjoy a strategic and competitive edge in their gameplay. Players can engage in intense races where success is determined by both speed and skill, making it a standout title in Evoplay’s diverse portfolio.
Following its main global release on October 8th, Evoplay is set to launch two additional versions of the game, slot title Adrenaline Rush: Super Boost on October 22nd, and crash game Adrenaline Rush: XCrash on November 5th, creating an expanded offering that caters to a variety of player preferences.
Released initially as an exclusive, Adrenaline Rush has already garnered attention for its innovative mechanics and immersive gameplay, earning the Skill Games Supplier award at the prestigious EGR B2B Awards. With this wider release, Evoplay’s global operator network will now be able to offer the title to an even broader audience.
Ivan Kravchuk, CEO at Evoplay, said: “Adrenaline Rush is a one-of-a-kind experience that perfectly blends competitive racing with skill-based gaming. Since its launch, it has resonated strongly with players, and we’re thrilled to now offer this exciting title to all of our operator partners globally.”
“The upcoming releases of the equally popular slot and crash versions will ensure that Adrenaline Rush remains a fan favourite across multiple formats.”
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