E-gaming: There is growth ahead of us

Advertisers can benefit from the plethora of opportunities that exist in the ever-expanding e-gaming industry. The growth-oriented space offers a unique platform to all brand categories, writes Vishnu Sharma, Founder & CEO, Efficacy Worldwide.

In the early days of 2020, Atari, the well-known brand and the pioneer of video games, including Pong, Asteroids and RollerCoaster Tycoon, announced that it will construct its first-ever video-themed hotel. With the e-gaming space is witnessing exponential growth, the company wants to benefit in the long run. 

The world of organised video games competition or e-gaming is getting serious and getting a lot of focus. Smartphones and a slew of new gadgets have changed our ways of gaming. They have even changed the games that are being produced or sponsored. As a result, there is a general rise in the number of options e-gamers have. And this is not just limited to the nature of the game but also across sports. Some of the popular e-gaming options include League of Legends, Call of Duty, and Overwatch. 

There have also been a slew of new announcements and launches in the e-gaming space. And these are not just limited to developers. Even device manufactures, the vast content industry, and the allied sectors have supported the ever-evolving gaming industry. For example, targeting gaming enthusiasts around the globe, HP has recently announced the launch of its new gaming monitor, the HP Omen 27c. There are several such examples. Moreover, the Corona-led pandemic propelled the idea further and has introduced e-gaming to a wider set of audience. 

What is happening within the space?

The days of sitting in silos are over. These days, competitions are often hosted at venues that can even host a large set of active audiences. These watch professional players and major corporations and companies sponsor such tournaments. Ease of use of broadband data, social media, the invention of interesting games, active participation of publishers and events like the pandemic has led to the rise in e-gaming. A unique feature of this surge is the involvement of sponsors and advertisers. 

Where is the e-gaming industry headed?

At present, other than the traditional e-sporting options, there is a whole bunch of new games that are being played over the cloud. And all have announced newer investments into their platforms. From Call of Duty - Season 9 to Cyberpunk 2077 to the Witcher 3: Wild Hunt, all developers behind the gaming platforms have either announced their new updates or have announced their launch early next year. The well-known, PUBG New State has been released in more than 200 countries, including India. The company has announced that there will be regular updates to offer new content, as well as improved gameplay and a season-based service. The latter will focus on gameplay balance and fun. 

According to a 2019 report from e-sports analytics firm Newzoo, it is likely the global games market would grow by billions of dollars over the next few years, rising to nearly USD200 billion by 2022.

The entry of streaming players

In recent years, the entry of streaming players (read OTT players and production houses), including Amazon, Netflix and Disney+ have been the most significant move of our times. While Amazon had acquired Twitch, a popular game streaming service, in 2014, Netflix has been a late entrant. Owing to the popularity of the e-games, Netflix has not only aired exclusive documentaries but has adopted other softer e-sports categories catering to children. As a result, it broadcast docu-series we have witnessed a cross-over of various series into famous games. These may include The Witcher, Stranger Things, etc.

What does it mean for advertisers and campaign managers?

Several developments have happened simultaneously over the past two years or so. While on the one hand, we see the rise in original content from various players we have also witnessed dedicated e-sports programming. Increased focus on e-gaming will prove to be a boon for the advertising industry. 

As a result, earnings from in-game advertisements are bound to increase. Hence, owing to the global reach and appeal of the gaming industry, it is a must for advertisers to include gaming platforms during their media planning. Therefore, various non-endemic brands have started focusing on the segment with hope. Brands across the FMCG, automobile, EduTech, FinTech, PropTech categories, and so on, have been consistently spending their money on in-game advertising. 

India is already witnessing a surge in gamers. The country is likely to have over 420 million gamers by the end of 2022, as per rough industry estimates. It would be correct to say despite the return to normalcy and people going back to offices in a post-COVID-19 era, the rise in the numbers of gaming enthusiasts is not going to ebb. It is this thought that is continuing to fuel the idea of renewed investments into the ecosystem. And this is just the beginning!

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