Since the beginning of time, people have been playing games online. From simple text-based adventures to the latest VR hit, it is important to understand the market dynamics behind this hobby before diving into any digital marketing strategy.
Luminous Insights has analyzed the worldwide marketshare of major PC games, identifying key insights into the gaming community that can be used to maximize marketing efficiency.
The Demographics Of Online Gaming
The generation of digitally influenced millennials is more likely to game online than any other before them. As a result, marketers should reexamine their approaches to target the coveted “hardcore gamer” demographic.
According to IDC’s Digital Analytics Predictions Report, by 2022 the share of revenue spent on digital marketing globally will increase from 10% to 26%.
Traditional marketing like print and radio ads are losing their effectiveness with younger audiences who seek deeper connections and brand autonomy in digital environments.
Rising Stars And Consequences
While it’s great to aim for excellence, sometimes you just gotta go with the flow. This is definitely the case with Nintendo’s Switch, which is a hybrid device that can both play as a console and be used as a portable device to access the internet and play games online. That makes it a rather unique product, and probably one of the reasons why it has been so successful.
One of the consequences of this shift to online gaming is that established brands are having to adjust and react fast to stay competitive. Fortunately, not all is lost as long-established players have adapted to these new challenges and have found ways to stay relevant.
Customer Segmentation
One of the key insights provided by Luminous Insights is the lack of segregation between genders when it comes to playing video games. In fact, across all age groups, 47% of online gamers are women, compared to 42% of all gamers.
This could have significant ramifications for marketers, as a recent IBM study showed that brands that target women consumers gain a 38% growth rate in sales compared to those that don’t. It’s clear that focusing on this audience could be more beneficial than previously thought.
These individuals also have different needs. According to the NPD group, by 2022 the top five categories that women play are as follows:
- Role-playing games
- Action games
- First-person shooters
- Shooters
- Racing games
Men, on the other hand, are more likely to prefer first-person shooters (35%) and action games (27%) over role-playing games (15%), racing games (13%), and simulation games (10%).
It might be beneficial for marketers to look into the gender differences within their customer base.
Digital Marketing Mix
As mentioned above, marketers have started to shift their focus to digital marketing due to its effectiveness compared to traditional methods. But this does not mean that all digital marketing strategies will be successful; especially since it is such a large space, there is bound to be one or two ‘digital marketing flops’ out there. As a result, marketers need to find the right balance between old and new to keep up with the trends and remain relevant for their target audience.
Luminous Insights has identified five distinct digital marketing strategies that can be used to optimize web traffic and conversions:
Website
The first step in any digital marketing campaign is the website (or webstore if selling physical goods). The design and layout of this front-facing piece of real estate is crucial, as it will play a key role in how visitors interact with the brand and what they think of when they leave the site.
In 2022, mobile usage has reached nearly every corner of the globe, with users spending more time on average on mobile devices than on traditional PCs. This trend is set to continue with 78.7 million American adults having used a smartphone, tablet, or laptop computer already this year, and 96.4 million expected to do so by next year.
As a result, marketers should aim to make sure that their web content is accessible and user-friendly regardless of whether the viewer is on a mobile device or using a desktop computer. The important thing is to ensure that everyone can easily find what they’re looking for – no matter where they are or what device they’re using.
Emails are still one of the most preferred methods of communication for customers, with people spending more than 4 hours per day on average on their phones and laptops going through their inboxes.
According to HubSpot Blogs research, 68% of respondents said they would rather receive discounts or deals through email than social media. Additionally, email continues to be the preferred mode of communication among Millennials, with 69% saying they would rather receive discounts or deals through email rather than social media. Even among Gen Z, the preferred channel is email at 54%.
The good news for marketers is that email is still a relevant platform. In 2022, email marketing will still drive digital marketing in terms of traffic and engagement. Marketers should continue to develop and refine their email marketing messages to ensure they’re engaging with their audience across all devices and platforms.
Social Media
With the rise of TikTok and its clones, consumers have more than enough reasons to log on to social media. This year, more people than ever are expected to become social media influencers, amplifying their messages and connecting with audiences across the globe.
According to HubSpot Blogs research, 66% of respondents said they would rather receive discounts or deals through social media rather than email. Additionally, 66% of respondents said they would rather receive discounts or deals through a blog rather than social media. Even among Gen Z, the preferred channel is social media at 54% (Twitter)
In terms of marketing on TikTok, it is important to set up your account with a business email address so that you can monitor your engagement with the platform. Additionally, since this is a ‘viral’ platform, it is paramount to establish yourself as a trusted voice in your industry and niche. Developing niche pages on various topics can help establish your credibility and allow you to gain authority in your industry.
Video
Once upon a time, video was considered a supplementary form of content. Now, thanks to platforms like TikTok, where users can publish short-form videos, it is the primary form of content.
According to HubSpot Blogs research, video is the primary source of content among users aged between 18 and 24, consuming 12 hours of video per day on average.
The ‘old’ media still has a very significant place in people’s hearts and minds – especially when it comes to news and current affairs, which 63% of respondents said was the most valuable type of content, versus 15% who valued most product demos and reviews.
Product Demo And Review
Product demos and reviews are valuable, however, not everyone will be convinced by your pitch if you haven’t demonstrated the product already. Demonstrating the product in action is crucial – before, during, and after the demonstration. There should be a noticeable difference in the way the product works compared to the demo, and the demonstration should ideally end with the viewer wishing they had the product to try out.
If you can, it’s preferable to prototype the product before demonstrating it. This allows you to make any necessary adjustments to ensure the product is shown in its best light. The benefit of this is that once the viewer sees the actual product, their perception of the worthiness and quality of the product will increase.
Pay Per Click Advertising
The last strategy identified by Luminous Insights is pay-per-click advertising. While Google AdWords and Facebook Ads are important, it is also essential to run multiple campaigns simultaneously to see the best results. Once you’ve tested these five distinct digital marketing strategies, which channel is the best fit for your brand?