Why in-game advertising now represents a powerful performance as well as a branding channel

Niklas Bakos, CEO and founder of Adverty, explains why the in-game advertising company has launched an ‘in-menu’ format to complement its in-play branding opportunities

Niklas Bakos, CEO and founder of Adverty, explains why the in-game advertising company has launched an ‘in-menu’ format to complement its in-play branding opportunities

Large swathes of the advertising community are yet to wake up to the power inherent within in-game advertising opportunities, and the fact that the audiences to be found here are far from niche.

With some 3 billion gamers around the world, the word ‘gamer’ is in fact something of a misnomer. Gamers are, in fact, just people; whether it’s someone who plays Candy Crush in rare moments of calm, or an avid eSports enthusiast playing professionally and winning large sums of money.

Partly for this reason, we took the step of launching an ‘in-menu’ format in recent months, in order to complement the branding opportunities already available within gameplay, such as the billboards and other virtual outdoor sites that some brands - and indeed gamers - have now become accustomed to.

Answering the need for non-interruptive brand communications

The invention and subsequent launch of in-menu ads was designed to enable contextually-relevant IAB display banner ads on menu screens in between game play. Rather than interrupting sessions, they invite rather than compel the end user to interact. It is absolutely critical that all in-game advertising is seamless and non-interruptive and sits alongside the immersive experience of virtual worlds. Crucially, too, they have also been created to allow the performance-based advertising that marketers crave and have become so accustomed to. As a world-first format for advertisers, agencies and game developers, the units are integrated at game design level, and can offer programmatic or direct buys.

This new, interactive format combines unobtrusive brand exposure with a potential call-to-action, enabling advertisers to lead audiences to a direct path-to-purchase, via a website, for instance. The proprietary, patent-pending ad technology is unique in its ability to keep users within the game throughout the complete ad experience rather than leading them out and away from where they had intended to be.

Seeking the perfect blend of branding and performance advertising

We’ve been working closely with the IAB in recent months to establish new industry standards for in-game advertising, given our strong belief that programmatic media buying will grow to include more opportunities for the in-app space – in which gaming is by far the largest category. Certainly the future of programmatic advertising looks likely to include a mix of both awareness and performance-based approaches, given that the most powerful advertising combinations have long been born from an expert blend of the two.

Indeed, it’s when differing in-game formats – such as in play and in menu – are used together, that advertisers are likely to see the greatest success. We look forward to brands leveraging the new inventory, enabling advertisers to grow awareness, unlock previously unreachable audiences, and boost conversions – all within a brand-safe and immersive context. New formats will no doubt follow, thanks to emerging technologies such as AR and VR, and increasing bandwidth.

In-game advertising: The last unexplored frontier of media?

Yet the fact remains: In-game advertising is still, in many respects, unchartered territory for the vast majority of brands. We hope that by bringing in a performance element to our offering it will entice more innovative companies to understand the huge opportunities inherent within it. We are offering a format in a language they understand, given that the whole programmatic ad space today is built on clicks, with nine in ten advertisers today still measuring in this way.

With in-game advertising, it is possible to reach billions of people, at their most engaged and receptive – whether in sports or racing, single or multi-player games. This is a media channel that’s long overdue a significant advertiser footprint. Brands such as Nike and Subway have already woken up to the power of in game advertising, and with many still spending more time indoors - thanks to the ongoing pandemic - numbers of so-called gamers look set to rise yet further. Let’s hope advertisers follow the eyeballs as well as the clicks.

By Niklas Bakos, CEO and Founder of Adverty