The growth in mobile advertising
It is not new news that mobile usage is growing and neither therefore is it any surprise that there was over 20% increase in the mobile advertising spend between 2015 and 20161. This trend shows no sign of slowing down either. In the US alone, 28% of consumers time is spend on their mobiles but mobile accounts for 21% of the total internet advertising spend2 i.e. there is undoubtedly further growth to come.
Google and Facebook control 85% of the online advertising growth3. The opportunities for targeted advertising are greater than ever before; personalised adverts, dynamic adverts and an increasing ability to measure the impact of online advertising into offline sales. Google recently reported that they had 5 billion cumulative tracked store visits on the back of localised advertising which was a 5-fold increase year-on-year4. Video advertising is also growing at a phenomenal rate with video estimated to make up 74% of all internet content by 20175 .
This is great news for the digital advertising companies, but what about consumers?
In a world where we are bombarded by advertising, the trend for consumers to block advertising is also growing. Whilst advertisers love auto-play videos for example, consumers don’t. In a MillwardBrown survey across 8 countries, when shown auto-play videos in social media, 26% of responses were positive and 74% negative6.
Most consumers open up their mobile with no particular purpose in mind, they are looking for entertainment or a distraction. It is therefore logical that retailers who can offer consumers some easily accessible, no-catch entertainment will have a head start in building their trust and the likelihood of viewing advertising. Despite mobile usage starting off with no purpose, it accounts for 52% of all internet purchases7 and therefore this ability to capture the trust and screen time of consumers is essential to the growth of retailers.
As a trend, mobile gaming is also on the up. The average mobile daily gaming session is up 33% in 2017 since 20158 and its not just younger people, the average age of gamers in the US is 359. Women make up 62% of the mobile gaming audience and 69% of all mobile phone owners play games at least once a month10. Gamification is about using gaming techniques to bring consumers willingly on a journey that will benefit both themselves and retailers.
At Gametation, we believe that allowing consumers to opt-in to advertising delivers better results. The first way that we do this is by inviting consumers into a game experience with very low threshold to entry, usually just a mobile phone number. We offer entertainment with no-strings attached and in return consumers reward retailers with their valuable attention.
Higher emotional engagement delivers better CTRs
And here is the proof. Facebook is viewed as having good click-through rates with an average of 0.98%11 . Dynamic ads (ones that change based on consumer behaviour e.g. location, context etc.) still have a conversion rate of under 0.5%12. In Gametation campaigns, where retailers optimise the use of the post-game advertising screens, average click-through rates are up to 6.5%. There are various reasons for this. Firstly, consumers have signed up to play a game and are there by choice. Secondly, they opt-to to view advertising and this advertising fills their entire mobile screen, it is not a small pop up in an internet search or a social media status screen. Thirdly, consumers are loyal to Gametation campaigns, it becomes part of their daily routine and they are receptive to the content that retailers present to them which can rotate on a regular basis. To back this up, we have clients who run regular gamification campaigns on one fixed URL. Even when there is no campaign live, they run adverts on this URL as consumers continue to visit the site out of habit.
Gametation as media platform
So, imagine a world where a retailer could use a targeted social media strategy to reach out to the exact consumers they want to talk to and use gamification to get the attention and trust of those consumers. Then imagine if they could serve up targeted advertising that they could control and change on a regular basis throughout a campaign, all of it with a clear call to action to link to their e-commerce sites, social media pages etc. Then imagine a world where these adverts would get over 6x the click-through rates than retailers would get if they invested in paid digital media (and with the average US Facebook ad costing $8 per 1,000 views13 this is no small investment). Finally, on average 30-40% of consumers who sign up to Gametation campaigns go on to visit retailers’ physical stores and 25%+ go on to spend an average market basket i.e. there is a clear measurable link between online and offline sales.
We offer a campaign platform that is a powerful and highly valuable media opportunity. Gametation, create the ultimate win-win.
1 IAB/PwC Internet Advertising Report 2016
2 IAB/PwC Internet Advertising Report 2016
3 Kleiner Perkins – Internet Trends 2017
4 Google Adwords blog May 2017
5 Kleiner Perkins – Internet Trends 2017
6 MillwardBrown survey AdReaction Video Creative in a Digital World
7 Salesforce Shopping Index, analysis of the fourth quarter of 2016
8 Entertainment Software Association (ESA) Essential facts about the computer and video game industry 2013-2016
9 Entertainment Software Association (ESA) Essential facts about the computer and video game industry 2013-2016
11 Taylor Schaller at Strikesocial
12 Kleiner Perkins – Internet Trends 2017
13 nanigans Global Facebook Advertising Benchmark Report Q1 2017