6 key marketing trends changing the gaming industry

6 key marketing trends changing the gaming industry

 

There has been huge growth in the gaming industry in recent years as well as consistent disruption, even before COVID-19; from growth in digital sales of games and esports to free-to-play revenue model adoption, live streaming, and cloud gaming platforms.

While gaming has historically been viewed as a niche category for hardcore enthusiasts and adolescents, gaming participation is now at mainstream levels, with over half of the UK adult population playing games last year.

Together with OC&C Strategy Consultants, we conducted research looking at the gaming industry as a whole, drawing parallels with other media and entertainment along the way and identifying key marketing implications.

1. Growing adoption of digital distribution

With the growing adoption of digital sales and distribution of games, physical game sales are in decline. Improved internet speeds, larger hardware storage capacities, and lower footfall to retail stores are driving even stronger digital sales growth. Smartphones, fast wifi, and faster networks have changed consumer attitudes on accessing and owning music, film, and now games from physical to digital. As digital sales and distribution of games continue to grow, publishers need to prioritise digital distribution when setting their marketing strategy.

2. Evolving business models

Game revenue models are evolving, impacting the lifecycle of games as well as the actual gameplay mechanics. Revenue models, such as the free-to-play model, continue to gain traction with the adoption of microtransactions across multiple franchises on all platforms. Mobile gaming continues to lead the way, with AAA titles (big-budget games developed by a large studio) on console and PC starting to adapt in order to drive maximum value as a result of the changes in consumer behavior and the acceptance of recurring revenue models. Marketers should understand what gamer behavior indicators they’re measuring to then augment that data into their marketing efforts, which in turn will help them reach the audiences who are likely to spend.

3. The rise of gaming as a social forum

The rise in the use of games as a means to socialize has been accelerated during the COVID-19 lockdown measures. Virtual spaces within large player-base games are also being used as gathering points where players socialize and experience a live event. We will continue to see the development of online multiplayer services for immersive experiences. Virtual live concerts have had viewership numbers in the tens of millions, highlighting the successful relationship between video games and music. We expect to see more game developers create opportunities to access this space.