The Power of Product Placements in Gaming

The Internet of Things (IoT) is quickly changing advertising dynamics. TV is no longer a mainstream advertising medium used to reach young people as was once the case. Statistics show that only 33% of Gen Zers watch TV today. The majority spend hours on social media platforms such as YouTube, Facebook, and Instagram.

Smart advertisers now know where their target audience hangs out and their buying trends on the platforms. And while more young people are increasingly using video streaming services, they spend more time playing and watching video games.

42% of Americans play video games regularly, or at least three hours per week. That’s why companies must focus on product placement in video games. Netflix recently admitted that the video game Fortnite is its biggest competitor. This post will break down why video gaming is ideal for product placement.

Before, many video game ads would include coded advertisements that appeared in offline games. That has changed because gamers now play and even compete from different continents in real-time. It’s now easier to customize ads according to location, gender, age, and gamers’ interests.

For instance, it has become easier to advertise new cars for sale in racing games without taking gamers’ attention away from the game. Most racing game ads feature the same cars used in the game. Gamers tend to buy cars in real life based on what they see in video games.

Video games are more immersive than TV or streaming platforms. Many people skip ads on streaming platforms, and many viewers check phone notifications or grab a glass of water during commercial breaks, when most brands advertise. It’s also hard for advertisers to know if their TV ads are being watched or if they reach the right audience.

It’s different with gaming. Video games draw the players’ full attention and keep their eyes glued to the screen. Studies show that gaming can enhance attention skills in small children. In addition, gaming and most digital platforms have metrics advertisers can use to track viewership. Due to this, in-game advertising can guarantee 100% viewability when placed appropriately.

Gaming enthusiasts can spend the whole day, week, and month playing the same video game to perfect their skills. Nobody watches a movie, a TV advert, or a YouTube video every day for a month. Marketing experts say that a prospect needs to "hear" a brand’s message at least 7 times before they take action to buy.

Achieving and exceeding that number is much easier with in-game advertising as ads feature more frequently in games. Additionally, products mostly feature in video games in an animated form, making it easier to recall them after a few interactions.

There are more than 2.81 billion gamers worldwide in 2021, so in-game product placements may soon become mainstream. The best part is gaming is no longer a reserve for young people alone as was previously the case. Today, 72% of gamers are 18 years and above and there’s an almost equal male to female ratio.