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In-game advertising: A marketer’s guide

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In-game advertising: A marketer's guide

Video games aren’t just fun. They can be profitable for savvy advertisers looking to reach one of the most lucrative and elusive groups of consumers.

In-game advertising merges ads with the game environment seamlessly. Imagine seeing billboards while racing through the streets or branded in-game products you can purchase. These ads are more powerful and effective than in-app advertisements — those annoying pop-ups or banner ads you commonly see in mobile app games.

With nearly 3 billion games worldwide, in-game advertising can give brands incredible reach. From virtual billboards to branded experiences, video games have become a marketer’s paradise for reaching the coveted gaming demographic.

This guide covers the basics of in-game advertising, including common ad types, available targeting options, associated costs, challenges and best practices.

Types of in-game advertising

Before exploring how to take advantage of in-game advertisements, let’s review the most common types of game ads.

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Static in-game advertising

These ads are directly hardcoded into the game. Since the ads can’t be changed and will exist in the game ad infinitum, rates are expensive and charged on a fixed-fee basis.

Dynamic in-game advertising

Dynamic ads can be replaced quickly and deployed instantly. These ads can appear in different places and formats (display and video ads are the most common). The 2008 billboards from Barack Obama in Need for Speed: Carbon are a great example of this ad format’s simple yet powerful use.

Sponsored game content involves integrating a brand or product into the actual game content, making it even more tangible and visible to the player and engaging them with the brand.

Dig deeper: PepsiCo’s strategies for marketing via online games and esports

KFC did this exceptionally well when it partnered with Nintendo to create a virtual island in the popular game Animal Crossing: New Horizons. The island was designed with KFC-themed items and decorations and even allowed players to win a voucher for chicken in real-life.

Advergames

Rather than integrating the ads into an already existing game, advergames are games specifically designed to promote a brand or product. They provide a fun and engaging way to interact with a brand and can effectively build brand awareness and loyalty.

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Chex Quest, made by Chex, was the first video game ever to be included in cereal boxes as a prize. It was a top-to-bottom conversion of the popular game Doom but adjusted it to be family-friendly. The game was a hit among consumers and even won several awards.

Activision Blizzard Media has recently created many Playables — branded stand-alone mobile app games.

Product placement

The classic advertisement method still works. Advertisers can put their products directly into video games to guarantee players see the brand and “use” the products.

I remember playing Mario Kart 8 on the Nintendo Wii and unlocking the Mercedes-Benz cars. This made the branded products more exclusive since they had to be earned.

Targeting options for in-game advertising

The other unique benefit of in-game advertisements are the targeting abilities. It starts with choosing the right game (or games). Advertisers can focus on consumers based on demographics, geolocation, device type or platforms. However, integrating these traditional targeting approaches with behavioral targeting makes in-game advertisements even more effective.

Behavior targeting uses the actions the player has taken (or has not taken) to create an ideal segment of users to reach. For example, an advertiser could target players who have demonstrated a willingness to open their wallets by spending money to buy items in a game — or players who have reached a certain level and are, therefore, more engaged.

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Combining these different ways of targeting and deploying them across various games that reach consumers on multiple platforms (gaming consoles, computers and smartphones) makes in-game advertising extremely powerful. With abundant reach and powerful targeting, brands can build awareness, drive engagement and boost sales quickly and effectively.

How to buy in-game advertising

Getting started with in-game advertising will ultimately depend on the types of games you want to appear in and your budget. 

When selecting an approach to buying in-game advertising, consider the specific goals, budget and target audience of the campaign. 

Game publishers

  • Example: Activision Blizzard Media

You can work directly with game publishers to create custom ad campaigns within their games. This approach provides more control over the creative content and targeting and a deeper level of integration with the game environment. 

However, it can be more time-consuming and expensive than other options and may not offer as much scale or reach since it is limited to a single game.

In-game ad networks 

  • Examples: Admix, Unity Ads

Ad networks connect brands with multiple game publishers, providing access to a broader collection of games. They offer greater scale and reach and more efficient pricing and targeting options. 

The downside is that you have less control over the creative content and placement. Some ad networks are not as high-quality and have limited targeting options. 

Programmatic advertising platforms 

Programmatic platforms use data and algorithms to automate the buying and placement of in-game ads across multiple publishers and platforms. This approach can offer greater efficiency, scale and advanced targeting options based on user data and behavior. However, programmatic platforms may have less control over the creative content and placement and may require more technical expertise.

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The costs of in-game advertising

How expensive are in-game ads? It depends, but it’s only going to get more expensive. In-game advertising pricing can vary based on several factors, including the type of game, ad format, targeting options and the size and scope of the campaign.

CPM pricing is the most common approach, and rates can vary widely based on factors like ad format and targeting. The average CPM for in-game display ads ranges from $10-20, with video ads from $15-30.

These numbers will vary dramatically depending on the audience, game, targeting and ad formats. For example, CPMS for in-game ads targeting Gen Z and Millennials were 30-50% higher than those targeting Gen X and Baby Boomers, according to an Interactive Advertising Bureau (IAB) study.

You can also expect CPMs to continue to rise with the growing popularity of games and the high demand to reach gamers who are otherwise difficult to reach. Other in-game ads follow a flat-rate pricing model, especially static ads or advergames.

Challenges and best practices

It’s all fun and games until your campaign stops performing well. In-game advertisements come with their own unique set of challenges — and fatigue is a real concern. 

  • Players can quickly become bored or annoyed by seeing the same ads repeatedly. Be sure to monitor frequency and refresh creative as often as possible.
  • Players will also be upset if ads are intrusive, distracting, or disrupt their gameplay in any way. This isn’t commonly an issue, but it’s an important consideration.

As with any advertising, targeting is critical. It’s best to use non-intrusive creative formats to engage users. If possible, rewarding users with in-game currency, items, or exclusive content can increase engagement rates and brand affinity. The aforementioned example of being able to earn Mercedes-Benz cars in Mario Kart is a simple but effective model of this in practice.

What’s in store for in-game advertising?

In-game advertising is a powerful way to reach a highly-engaged, lucrative and fast-growing audience. There is no shortage of different types of games and no reason not to try in-game advertising.

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Mobile games and handheld gaming platforms like the Nintendo Switch make it even easier for brands to stay connected and engaged with users even more than ever before.

New technologies like virtual reality and the Metaverse will bring more gaming environments, unique experiences and even more diverse opportunities for advertisers to explore.


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Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

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How To Combine PR and Content Marketing Superpowers To Achieve Business Goals

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A figure pulls open a dress shirt to reveal the term PR on a Superman-like costume, reflecting the superpower resulting from combining content and PR.

A transformative shift is happening, and it’s not AI.

The aisle between public relations and content marketing is rapidly narrowing. If you’re smart about the convergence, you can forever enhance your brand’s storytelling.

The goals and roles of content marketing and PR overlap more and more. The job descriptions look awfully similar. Shrinking budgets and a shrewd eye for efficiency mean you and your PR pals could face the chopping block if you don’t streamline operations and deliver on the company’s goals (because marketing communications is always first to be axed, right?).

Yikes. Let’s take a big, deep breath. This is not a threat. It’s an opportunity.

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Reach across the aisle to PR and streamline content creation, improve distribution strategies, and get back to the heart of what you both are meant to do: Build strong relationships and tell impactful stories.

So, before you panic-post that open-to-work banner on LinkedIn, consider these tips from content marketing, PR, and journalism pros who’ve figured out how to thrive in an increasingly narrowing content ecosystem.

1. See journalists as your audience

Savvy pros know the ability to tell an impactful story — and support it with publish-ready collateral — grounds successful media relationships. And as a content marketer, your skills in storytelling and connecting with audiences, including journalists, naturally support your PR pals’ media outreach.

Strategic storytelling creates content focused on what the audience needs and wants. Sharing content on your blog or social media builds relationships with journalists who source those channels for story ideas, event updates, and subject matter experts.

“Embedding PR strategies in your content marketing pieces informs your audience and can easily be picked up by media,” says Alex Sanchez, chief experience officer at BeWell, New Mexico’s Health Insurance Marketplace. “We have seen reporters do this many times, pulling stories from our blogs and putting them in the nightly news — most of the time without even reaching out to us.”

Acacia James, weekend producer/morning associate producer at WTOP radio in Washington, D.C., says blogs and social media posts are helpful to her work. “If I see a story idea, and I see that they’re willing to share information, it’s easier to contact them — and we can also backlink their content. It’s huge for us to be able to use every avenue.” 

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Kirby Winn, manager of PR at ImpactLife, says reporters and assignment editors are key consumers of their content. “And I don’t mean a news release that just hit their inbox. They’re going to our blog and consuming our stories, just like any other audience member,” he says. “Our organization has put more focus into content marketing in the past few years — it supports a media pitch so well and highlights the stories we have to tell.”

Storytelling attracts earned media that might not pick up the generic news topic. “It’s one thing to pitch a general story about how we help consumers sign up for low-cost health insurance,” Alex says. “Now, imagine a single mom who just got a plan after years of thinking it was too expensive. She had a terrible car accident, and the $60,000 ER bill that would have ruined her financially was covered. Now that’s a story journalists will want to cover, and that will be relatable to their audience and ours.” 

2. Learn the media outlet’s audience

Seventy-three percent of reporters say one-fourth or less of the stories pitched are relevant to their audiences, according to Cision’s 2023 State of the Media Report (registration required).

PR pros are known for building relationships with journalists, while content marketers thrive in building communities around content. Merge these best practices to build desirable content that works for your target audience and the media’s audiences simultaneously.

WTOP’s Acacia James says sources who show they’re ready to share helpful, relevant content often win pitches for coverage. “In radio, we do a lot of research on who is listening to us, and we’re focused on a prototype called ‘Mike and Jen’ — normal, everyday people in Generation X … So when we get press releases and pitches, we ask, ‘How interested will Mike and Jen be in this story?’” 

3. Deliver the full content package (and make journalists’ jobs easier)

Cranking out content to their media outlet’s standards has never been tougher for journalists. Newsrooms are significantly understaffed, and anything you can do to make their lives easier will be appreciated and potentially rewarded with coverage. Content marketers are built to think about all the elements to tell the story through multiple mediums and channels.

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“Today’s content marketing pretty much provides a package to the media outlet,” says So Young Pak, director of media relations at MedStar Washington Hospital Center. “PR is doing a lot of storytelling work in advance of media publication. We (and content marketing) work together to provide the elements to go with each story — photos, subject matter experts, patients, videos, and data points, if needed.”   

At WTOP, the successful content package includes audio. “As a radio station, we are focused on high-quality sound,” Acacia James says. “Savvy sources know to record and send us voice memos, and then we pull cuts from the audio … You will naturally want to do someone a favor if they did you one — like providing helpful soundbites, audio, and newsworthy stories.”  

While production value matters to some media, you shouldn’t stress about it. “In the past decade, how we work with reporters has changed. Back in the day, if they couldn’t be there in person, they weren’t going to interview your expert,” says Jason Carlton, an accredited PR professional and manager of marketing and communications at Intermountain Health. “During COVID, we had to switch to virtual interviewing. Now, many journalists are OK with running a Teams or Zoom interview they’ve done with an expert on the news.”

BeWell’s Alex Sanchez agrees. “I’ve heard old school PR folks cringe at the idea of putting up a Zoom video instead of getting traditional video interviews. It doesn’t really matter to consumers. Focus on the story, on the timeliness, and the relevance. Consumers want authenticity, not super stylized, stiff content.”

4. Unite great minds to maximize efficiency

Everyone needs to set aside the debate about which team — PR or content marketing — gets credit for the resulting media coverage.

At MedStar Washington Hospital Center, So Young and colleagues adopt a collaborative mindset on multichannel stories. “We can get the interview and gather information for all the different pieces — blog, audio, video, press release, internal newsletter, or magazine. That way, we’re not trying to figure things out individually, and the subject matter experts only have to have that conversation once,” she says.

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Regular, cross-team meetings are essential to understand the best channels for reaching key audiences, including the media. A story that began life as a press release might reap SEO and earned media gold if it’s strategized as a blog, video, and media pitch.

“At Intermountain Health, we have individual teams for media relations, marketing, social media, and hospital communications. That setup works well because it allows us to bring in the people who are the given experts in those areas,” says Intermountain’s Jason Carlton. “Together, we decide if a story is best for the blog, a media pitch, or a mix of channels — that way, we avoid duplicating work and the risk of diluting the story’s impact.”

5. Measure what matters

Cutting through the noise to earn media mentions requires keen attention to metrics. Since content marketing and PR metrics overlap, synthesizing the data in your team meetings can save time while streamlining your storytelling efforts.

“For content marketers, using analytical tools such as GA4 can help measure the effectiveness of their content campaigns and landing pages to determine meaningful KPIs such as organic traffic, keyword rankings, lead generation, and conversion rates,” says John Martino, director of digital marketing for Visiting Angels. “PR teams can use media coverage and social interactions to assess user engagement and brand awareness. A unified and omnichannel approach can help both teams demonstrate their value in enhancing brand visibility, engagement, and overall business success.”

To track your shared goals, launch a shared dashboard that helps tell the combined “story of your stories” to internal and executive teams. Among the metrics to monitor:

  • Page views: Obviously, this queen of metrics continues to be important across PR and content marketing. Take your analysis to the next level by evaluating which niche audiences are contributing to these views to further hone your storytelling targets, including media outlets.
  • Earned media mentions: Through a media tracker service or good old Google Alerts, you can tally the echo of your content marketing and PR. Look at your site’s referral traffic report to identify media outlets that send traffic to your blog or other web pages.
  • Organic search queries: Dive into your analytics platform to surface organic search queries that lead to visitors. Build from those questions to develop stories that further resonate with your audience and your targeted media.
  • On-page actions: When visitors show up on your content, what are they doing? What do they click? Where do they go next? Building next-step pathways is your bread and butter in content marketing — and PR can use them as a natural pipeline for media to pick up more stories, angles, and quotes.

But perhaps the biggest metric to track is team satisfaction. Who on the collaborative team had the most fun writing blogs, producing videos, or calling the news stations? Lean into the natural skills and passions of your team members to distribute work properly, maximize the team output, and improve relationships with the media, your audience, and internal teams.

“It’s really trying to understand the problem to solve — the needle to move — and determining a plan that will help them achieve their goal,” Jason says. “If you don’t have those measurable objectives, you’re not going to know whether you made a difference.”

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Don’t fear the merger

Whether you deliberately work together or not, content marketing and public relations are tied together. ImpactLife’s Kirby Winn explains, “As soon as we begin to talk about (ourselves) to a reporter who doesn’t know us, they are certainly going to check out our stories.”

But consciously uniting PR and content marketing will ease the challenges you both face. Working together allows you to save time, eliminate duplicate work, and gain free time to tell more stories and drive them into impactful media placements.

Register to attend Content Marketing World in San Diego. Use the code BLOG100 to save $100. Can’t attend in person this year? Check out the Digital Pass for access to on-demand session recordings from the live event through the end of the year.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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Trends in Content Localization – Moz

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Trends in Content Localization - Moz

Multinational fast food chains are one of the best-known examples of recognizing that product menus may sometimes have to change significantly to serve distinct audiences. The above video is just a short run-through of the same business selling smokehouse burgers, kofta, paneer, and rice bowls in an effort to appeal to people in a variety of places. I can’t personally judge the validity of these representations, but what I can see is that, in such cases, you don’t merely localize your content but the products on which your content is founded.

Sometimes, even the branding of businesses is different around the world; what we call Burger King in America is Hungry Jack’s in Australia, Lays potato chips here are Sabritas in Mexico, and DiGiorno frozen pizza is familiar in the US, but Canada knows it as Delissio.

Tales of product tailoring failures often become famous, likely because some of them may seem humorous from a distance, but cultural sensitivity should always be taken seriously. If a brand you are marketing is on its way to becoming a large global seller, the best insurance against reputation damage and revenue loss as a result of cultural insensitivity is to employ regional and cultural experts whose first-hand and lived experiences can steward the organization in acting with awareness and respect.

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How AI Is Redefining Startup GTM Strategy

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How AI Is Redefining Startup GTM Strategy

AI and startups? It just makes sense.

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