Six Major Game Marketing Insights from Advertising Week New York: From Audience Segmentation to a Shift in Measurement Mindset

New York — From pop-up ads to in-game integrations, advertising in the gaming ecosystem has seen significant growth and innovation over the past few years. However, despite these developments, only a small portion of marketing spending goes to gaming. As marketers gathered in New York for Advertising Week, how to fully leverage gaming became a hot topic, including the first-ever Gaming Summit held during the conference.

Discussion topics covered targeting specific audiences, activating across different platforms, and understanding how to measure campaign effectiveness. Speakers from various industries shared insights, including FMCG marketers like PepsiCo, major platforms like Twitch and Discord, and more vertical companies like Super League and Microsoft.

Dave's Hot Chicken is one of the brands trying to make the most of gaming. During the Gaming Summit, an executive from the young brand said that gaming ads allow it to reach younger consumers while enhancing the digital experience. The brand can educate consumers about its products without being overly "salesy," the executive said.

To help marketers understand the latest developments in this growing field, Marketing Dive has compiled six gaming marketing takeaways from Advertising Week New York.

Don't use the term "gamer"

With 3.6 billion gamers worldwide, this group is far from monolithic. People from all walks of life engage in this pastime, whether playing intensely for long hours or casually on mobile devices during commutes. In fact, 83% of gamers are mobile gamers.

Nevertheless, when people hear the term "gamer," a specific image often comes to mind — a male (usually white) teenager spending hours in front of a computer or console. This image is not only inaccurate, but using the term "gamer" may scare off potential marketers and partners due to its connotations. The best choice? Simply don't use it.

"When you hear the word 'gamer,' there's a very specific image in your mind. That's exactly what we're trying to move away from now," said Jonathan Stringfield, vice president of global business strategy, analytics, and trust at Microsoft Advertising, during a panel discussion.

The term "metaverse" failed, but the conversation continues

About three years ago, when the metaverse piqued marketers' interest, gaming gained significant attention. The promise of multi-connected platforms had the potential to change how people interact online, opening new doors for brands.

Gaming already possesses much of the interoperability the metaverse requires. However, the discussion around the metaverse has faded, and with it much of the hype surrounding gaming ads. But this conversation has still brought significant benefits to the industry, as marketers have become more comfortable with in-game activations.

"The metaverse label let us down," Stringfield said. "What didn't let us down is that we're still thinking about the potential of these worlds that existed before the metaverse conversation happened."

CTV: The next frontier

One of the biggest challenges for marketers looking to enter the gaming space is reaching consumers. While mobile gaming dominates, consoles lead in growth, with a 5.5% year-over-year increase in 2024 according to Newzoo data. Console players often play alone or online via TV, which can feel difficult to reach.

CTV offers marketers a workaround. The technology has evolved rapidly, allowing marketers to treat gaming like any other CTV activation. However, instead of seeing ads before a show, ads appear when a game loads.

However, this strategy still carries risks. That is, when an ad appears is almost as important as where it appears and who it targets.

"Enhancing the experience is very important. Be careful where your ads appear, because if you interrupt a player's kill streak, they'll hate you forever," said Stephanie Hawkins, gaming director at Wavemaker.

Social interaction

Gaming has become a key form of social interaction, especially among younger consumers. Consumers not only chat on platforms like Roblox and Fortnite, but also go to standalone platforms to socialize while gaming. Discord is the most prominent example, with 90% of users coming to the platform to game with friends, according to Meena Mutha, director of gaming advertising solutions at Discord.

"They come to Discord to game, but also to form communities, communicate with friends, and build connections, especially among Gen Z," Mutha said.

This presents a unique opportunity for advertisers. Even if brands can't integrate into the game itself, they can engage with the conversations around gaming. Community platforms like Twitch and Discord open that door.

Not a monolith

The gaming landscape is as diverse as its players. The player base of a first-person shooter like Call of Duty may be vastly different from that of a cozy farming simulation like Stardew Valley. For example, according to Hawkins, mobile games tend to be more popular among women.

"When brands look at the gaming space, they should start with the audience, understand what the audience is seeking, rather than treating gaming as a monolith," Hawkins said.

Like any other media buy, understanding the brand's audience is crucial. Gaming audiences can vary, and understanding this will help gaming ads succeed.

Changing measurement mindset

As consumer attention fragments, measuring campaign effectiveness becomes more nuanced. Gaming ads have their own challenges and obstacles, such as a lack of standardization. This means marketers must consider what success looks like for them.

However, one of the main benefits of gaming ads is that consumers tend to be more engaged with the content. They interact actively in ways not necessarily possible on other platforms. Marketers will have to test what works for them.

"What really matters is continuous testing; you don't have to invest $5 million to test," said Srishti Handa, senior marketing director at Dave's Hot Chicken. "It's a manageable test... When you test, you learn more."