The gaming market and in-game advertising have yet to be fully explored by local brands.
With over 3 billion global gamers, Singapore stands as the fourth-largest gaming market, presenting a significant opportunity for brands to expand their reach. According to a 2023 report by YouGov, Singaporeans dedicate an average of 9.8 hours per week to gaming, emphasising the substantial presence and engagement within the gaming community.
Moreover, research from Newzoo reveals that young demographics prioritise gaming over traditional TV or subscription content, highlighting the medium’s capacity for heightened engagement and attention capture—qualities essential in today’s attention economy. Anticipated global revenues for video game advertising in 2024 are estimated at around $91 billion, positioning gaming as the fifth-largest channel by ad spend, trailing behind search, social media, linear TV, and retail media.
Gaming has now become part of the consumers’ journey, where brands can connect with a wider range of audiences through advertisements and content. While it is crucial for brands to explore this (relatively) new advertising channel, brands must also understand that the key to engaging the gaming community is by delivering the right content at the right time and on the right platform.
For brands seeking to capitalise on this burgeoning market, there are three compelling reasons to do so.
1. Reach Hard To Reach Audience
The landscape of gaming is evolving, challenging traditional stereotypes as mobile games gain prominence, consuming nearly twice as many weekly hours as PC/console games. Moreover, mobile gaming has broadened the demographic spectrum, appealing to a diverse audience, including older individuals and females. Despite this diversification, the younger generation, especially Gen Z, remains the primary demographic, with 87% playing games weekly, compared to 55% of those aged above 55.
The surge in mobile gaming offers advertisers a plethora of advertising formats to consider. These include Intrinsic In-Game ads, seamlessly integrated into gameplay; Adjacent placements, positioned alongside the game interface; Interstitial placements, pausing gameplay to focus on the ad; and Rewarded placements, offering incentives like watching a video for in-game rewards. However, brands must navigate carefully, selecting formats and content judiciously.
Studies indicate that traditional display or pop-up ads may be less effective and more intrusive compared to ‘in-game’ or ‘around the game’ ads, which seamlessly blend with the gaming environment. For mobile gamers, ads offering rewards hold a particular appeal. Generally, ads that minimise disruption and seamlessly integrate with the gaming experience are perceived as more relevant and engaging to consumers.
2. High Levels of Attention and Engagement
Ad blocking is experiencing a resurgence, with over 85% of digital ads failing to meet the “attention threshold” necessary for lasting impact. However, gaming presents a notable exception, boasting exceptionally high levels of attention and engagement.
In-game advertising particularly shines in terms of viewability, surpassing the industry average by a significant margin (98% versus 78% across 42 digital advertising formats). Impressively, 85% of in-game ad impressions are actually viewed by consumers, compared to the average of 65% for other digital ad formats.
Notably, in-game advertising captivates gamers’ attention for extended periods, second only to YouTube in digital advertising formats, leading to robust brand recall and increased purchase intent. Leveraging the unique advantages of in-game advertising can yield substantial benefits for brands, fostering exploration of this channel’s potential to drive tangible business outcomes and capitalise on synergies with other marketing channels.
3. The (Fairly New) Gaming KOLs
The rise of gaming Key Opinion Leaders (KOLs) marks a relatively new frontier for brands seeking to tap into the burgeoning gaming community. Despite their burgeoning influence, brands have traditionally overlooked these KOLs, perhaps due to a lack of understanding or appreciation for their reach. However, in Singapore, gaming KOLs wield significant power, with a vast majority of gamers aware of their existence and actively following their content. One notable example is the local professional Valorant team, Paper Rex.
Paper Rex has garnered immense recognition not only within Singapore but also on a global scale, capturing the attention of Valorant enthusiasts worldwide. Their dominance in competitive gaming is evidenced by multiple championship titles in the Valorant Champions Tour (VCT). Recently, Siam Square Mookata partnered with Jinggg, a prominent player ranked as the #1 in the Asia-Pacific region and a revered member of Paper Rex. This collaboration highlights the potential for brands to leverage the influence of gaming KOLs in crafting compelling content that resonates with their target audience.
Numerous other pro-gamers and gaming KOLs hold sway over the Singaporean gaming community. Their popularity presents a ripe opportunity for brands to engage with them, fostering mutually beneficial partnerships and co-creating content that resonates deeply with gaming enthusiasts, giving both the audiences and KOLs an immersive brand experience. As brands increasingly recognize the value of gaming KOLs in reaching their target demographic, the potential for innovative collaborations and impactful marketing initiatives within the gaming sphere continues to expand.
Check out our Timezone Experience+ – Event Campaign where we brought gaming KOLs to a more “traditional” gaming at the arcade.
Conclusion
The gaming market presents a significant opportunity for brands, with over 3 billion global gamers and a substantial presence in Singapore, where citizens spend an average of 9.8 hours per week gaming.
The rise of mobile gaming and the influence of gaming KOLs offer new avenues for brand engagement through co-creation, bringing an immersive experience to the audience. This emphasises the need for strategic adaptation. In-game advertising formats capitalise on high levels of attention and engagement within the gaming community, while partnerships with gaming KOLs facilitate authentic connections and drive brand affinity.
Brands that proactively embrace these trends stand to benefit from meaningful connections with gamers and the potential for tangible business outcomes in this dynamic and rapidly growing sector. However, brands need to stay alert and be aware of any pitfalls, hence, having the need to tread carefully into this market. Brands need to ensure that they serve content at the right time and on the right platform.
If you’re looking to revolutionise your brand communication efforts with the gaming market, contact us today!
