How cross-branding impacts the gaming industry

As per All India Gaming Federation, the Indian gaming market is expected to grow from $2.8 billion in 2022 to $5 billion in 2025, growing at a CAGR of 28-30 percent.

By
  • Harshit Jain,
| October 10, 2023 , 8:12 am
With more people than ever before spending their leisure time on mobile devices, brands are recognising the potential of advertising in this space. (Representative image by Ryland Dean via Unsplash)
With more people than ever before spending their leisure time on mobile devices, brands are recognising the potential of advertising in this space. (Representative image by Ryland Dean via Unsplash)

A large audience, millions of eyeballs glued to screens and attuned listeners completely immersed for hours at a time. Sounds like every marketer’s dream right? Well this ideal situation is the real potential of India’s growing gaming landscape.

The gaming industry in India is rapidly becoming a major player in the attention economy, with people spending between 8.5 and 11 hours per week on gaming. These gamers reflect on India’s young and diverse population, mostly falling into the Gen Z, Gen X, and millennial generations. Additionally, gaming has also become a mainstream form of entertainment with communities, esports and competitive gaming now rivalling live sports. As per All India Gaming Federation, the Indian gaming market is expected to grow from $2.8 billion in 2022 to $5 billion in 2025, growing at a CAGR of 28-30 percent.

The gaming community itself has immense buying potential which makes them a lucrative audience for brands and marketers. However, they need to keep their play authentic, communication clear, and offer a proposition that adds value to the players, and one of the best ways to achieve that is through cross branding.

There are impactful ways for brands to effectively tap into cross branding. Let’s take a look:

Brand Sponsorships

Esports is the next big thing in the global entertainment industry clocking over $1 billion in marketing revenue. This keeps them high above the value chain for not just gaming companies but brands all over the globe. Moreover, its global audience on major events is ready to flock to Olympic-sized sports stadiums to watch professional gamers compete against each other for millions of dollars in cash prizes.

In today’s world where revenue from digital advertising continues to eclipse television ad revenue, and where influencer marketing is becoming brands go-to alternative, esports is a fast-growing opportunity for marketers to engage Gen Z and younger millennial audiences that are notoriously hard to reach through the traditional channels. Valuable team sponsorships, big and bold banners, event partnerships, merchandising and an unlimited scope of campaigning can be achieved through esports. Beyond financial support, these partnerships also enhance the gaming experience, make events more vibrant, foster community engagement, and contribute to the overall growth of esports.

Integrated In-Game Advertisements:

Incorporating in-game ads is a powerful strategy for boosting brand visibility, especially in the context of integrated in-game advertising, which doesn’t rely on clicks. By harnessing advanced ad technology, companies can run targeted campaigns that seamlessly align with individual player interests while maintaining strict data privacy compliance. These ads can be strategically positioned within the gaming environment, appearing on various in-game elements like billboards, signage, and player attire. In popular games, players often encounter brand presence during gameplay. Most gamers spend 1 to 2 hours per session, according to a Rakuten Insight report from April 2022, creating ample opportunities for brand interactions throughout their gaming experience.

Brand and Game Partnerships:.

Brand and game partnerships offer significant advantages to both players. Brands can tap into the immense and engaged gaming audience to enhance their visibility and credibility. Simultaneously, game developers benefit from monetization opportunities, marketing support, and access to additional resources that enhance the gaming experience. For instance, brand-sponsored in-game events, exclusive items, or themed game levels create immersive experiences for gamers while increasing brand exposure. These partnerships extend beyond traditional advertising, forging meaningful connections between brands and gamers. Examples include collaborations that introduce game characters into brand campaigns or integrate real-world products into the gaming environment, enriching the player’s experience while amplifying brand recognition.

Cloud Gaming Revolutionising in Game-Based Advertising:

Cloud gaming is revolutionising game-based advertising and marketing by offering several distinct advantages. First and foremost, it provides a significantly wider reach compared to traditional gaming. With cloud gaming, companies can target customers across different geographical locations, catering to diverse gaming preferences and interests. This level of personalization and customization is a game-changer, allowing for tailored gaming experiences that resonate with individual players. Moreover, it proves to be more cost-effective as companies pay for usage-based gaming rather than upfront costs associated with traditional marketing campaigns.

Additionally, cloud gaming platforms facilitate the creation of more immersive and interactive experiences for users. Players can access these experiences through their own gaming devices and engage with content in real-time. This real-time interaction surpasses what was previously possible with traditional gaming platforms, enhancing user engagement. Furthermore, cloud gaming offers a unique opportunity for advertisers to track user behaviour comprehensively by monitoring user interactions with games and utilise this data to personalise and optimise advertising strategies. This level of data-driven decision-making ensures that marketing efforts are highly effective.

As the gaming industry continues its exponential growth, cloud gaming is emerging as a powerful tool for game-based advertising and marketing. Its wide reach, cost-effectiveness, interactive gameplay, and data-driven insights are making it an increasingly attractive option for brands and companies looking to connect with their target audiences effectively.

The Bright Future of Gaming Advertising

The gaming industry presents a constructive ground for innovative marketing strategies, with a vast potential for advertisers to engage with a diverse audience. India, in particular, has witnessed a remarkable surge in gaming ad spending, underlining the sector’s promising prospects. The rapid growth of the gaming industry, coupled with the burgeoning esports sector, offers brands untapped opportunities for substantial ad revenue and cross-branding ventures.

Harshit Jain is the CEO and co-founder at OnePlay, a cloud gaming platform.

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