The Post-COVID Gaming Market Opportunity

The COVID-19 pandemic brought significant shifts to marketing strategies, including the rise of not only streaming, but gaming as well. Amidst the surge in social activity, there was also a surge in casual gaming during the pandemic. Marketers recognized the potential of reaching a diverse audience through in-app advertising. It may be no surprise that a period of time where people were isolated from the outside world and stuck at home resulted in a marked increase in engagement for numerous digital entertainment media formats. Forbes spoke about the meteoric rise of streaming saying, “many advertisers were cognizant that the jump from cable to streaming content would happen, but not at the rate that it occurred. While there are high CPMs when compared to search and social platforms, there is a lot less competition, and advertisers who invested in it took advantage of that. It also has a lot of targeting and reporting options that linear television doesn’t.

Similar activity occurred in gaming, with some minor fluctuations unique to that market. Marketing Brew broke down a major report from PwC which in part said, “the biggest chunk of revenue in the US video game market came from social and casual gaming.” This includes gaming apps on smartphones, tablets, and browsers. While those games sometimes generate revenue from in-app purchases and subscription fees, the largest source of revenue came from in-app ads.” Venture Beat commenting on the same report dove even further saying, “a post-COVID-19 pandemic market correction likely played a role in this, because consumers returning to regular working life had less free time and disposable income to spend on video games. The growth rate is expected to increase to 5.1% in 2023 and oscillate between 6.6% and 5.6% for the remainder of the forecast period.”

The shift from traditional television to streaming platforms, as well as the rise in gaming engagement through numerous channels, presents exciting opportunities for advertisers to target specific audiences and leverage advanced data analytics. However, we know that this transition also calls for increased diligence in selecting platforms and content that not only align with brand values but ensures a safe and suitable environment for brand messaging. As the gaming industry and marketing strategies evolve in the wake of the COVID-19 pandemic, brand safety remains a top priority for marketers. By remaining committed to agreed upon brand safety measures, marketers can protect their brand reputation and align their messaging with the growing opportunities of the gaming community.