Gaming once again proves useful to advertisers: Here’s what the numbers say

Marketing Dive · (Industry Dive)

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Gaming streaming platform Twitch delivers above-average performance in terms of brand recall and preference, according to a recent report from Dentsu. With the gaming market projected to be worth $320 billion by 2026, knowing how to reach gamers could provide brands with a boost in advertising performance.

However, while the rewards may be great, Twitch marketing remains complex for many marketers. Another potential turnoff for marketers could be the recent upheaval in the gaming space, with a significant number of layoffs announced since the start of 2024. Microsoft is letting go of 1,900 Activision Blizzard and Xbox employees, Riot Games said it is laying off 11% of its workforce and Twitch is dropping 35% of its employees. Still, the benefits could outweigh the challenges, per Dentsu’s research.

“Gaming has really high attention levels compared to some of the other channels that we've done research with in the past,” said Kevin Villatoro, director of global media partnerships for Dentsu Media U.S. “And for me, that's a huge flag that more advertisers need to augment their current plans with gaming inventory. A lot of this stuff can be bought programmatically. A lot of advertisers buy programmatic inventory, why not test and learn some gaming if it's already in there?”

“Play Attention: Calling Focus to Gaming'' was researched in partnership with Lumen. For the report, attention across livestreaming was measured on Twitch. The report looked at Activision Blizzard to determine the benefits of rewarded video while the usefulness of intrinsic in-game advertising was studied with Anzu. Eye-tracking software was used to track attention levels during ads. The study was conducted in five markets.

All eyes on gaming

Advertising on Twitch isn’t as simple as the standard pre- or mid-roll ad. In order to drive maximum engagement, understanding how to reach audiences is crucial. Additionally, gaming advertising goes beyond livestreaming, depending on the platform. Livestreaming, rewarded videos and intrinsic in-game advertising all produce different results.

Ads aired during livestreams on gaming platforms deliver an average brand recall of 57%, significantly higher than the 38% norm measured by Dentsu across social, online video, audio and display advertisements. Additionally, no matter where the ads come up during a stream and how long they are, they were found to be effective. Mid-roll ads were found to be just as effective as pre-roll placements. Once ads passed the five second mark, 15-second advertisements were just as efficient as 30-second ones.