IAB Study Examines Effects of Game-Related Advertising On Marketing Mix
A groundbreaking study titled “Changing the Game: How Games Advertising Powers Performance” was released during IAB PlayFronts and examines the effects of game-related advertising amid the gaming industry’s explosive growth. The pioneering research by media agencies and brands measures the efficacy, reach, and success of gaming advertising, illuminating why it is such an important part of the marketing mix.
Current State of Gaming and Games Advertising
For those who use it, gaming advertising is now a crucial and ever-expanding component of the marketing mix. Remarkably, 40% of advertisers intend to raise their game advertising budgets in the upcoming year, and 86% of respondents concur that the industry is becoming more and more important to their businesses.
Spending increases on advertising coincide with the rise in popularity and significance of gaming in the United States. 213 million people play video games in the US, according to Entertainment Software America (ESA), and eMarketer predicts that ad spending on games will increase from $8.53 billion in 2024 to $11.49 billion by 2027.
Why Are Marketers Using Games Advertising?
Games advertising has developed into a dependable channel for providing premium, high-caliber inventory as it continues to grow. Notably, 86% of advertisers polled concur that it is brand safe, securing its ranking as the second-best channel for brand safety. Furthermore, 85% of respondents express confidence in their capacity to quantify game advertising.
Even though 79% of advertisers find buying game advertising to be reasonably easy, it still requires more planning and purchasing than other digital media channels. Expert buyers and planners stress that more work is necessary to completely capitalize on the benefits of game advertising. Due to the diversity of the gaming industry and the requirement for custom work, this involves researching gaming audiences to learn about their preferences and customizing ad formats and creatives, which can be more complex than in other media channels.
These findings make it clear that gaming advertising is an effective means of reaching the right customers in their preferred setting. Its effectiveness in getting relevant messaging in front of valuable but difficult-to-reach audiences is attested to by an impressive 90% of advertisers. Further, 85% of advertisers recognize game advertising as a premium, high-quality platform for promoting their brands. It presents a new and creative way to market by incorporating immersive ad placements into user experiences.
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Games advertising is effective across the entire customer journey
According to 78% of advertisers, games advertising is excellent or good at raising awareness, 76% at encouraging research and consideration, and 65% at encouraging purchase. This indicates that game advertising meets both brand and performance marketing goals.
IAB launches creative guidelines and best practices for advertising in gaming.
To help advertisers fully utilize the potential of this channel, IAB has also published best practices and guidelines for gaming advertising. To guarantee courteous and successful advertising across a range of gaming platforms, the initiative introduces crucial guidelines regarding creative in-game advertising. To standardize procedures and make advertisements interesting rather than disruptive, the guidelines address the problem of intrusive advertising by placing a high priority on appropriate calls-to-action, transparent disclosures, and adherence to quality assurance procedures. To achieve higher standards and an ideal balance between advertising goals and user satisfaction, the document establishes guidelines for various ad formats and encourages collaboration between gaming and advertising professionals.
Here’s what they said
Jack Koch, Senior Vice President, Research & Insights, IAB said,
“This is the first large-scale quantitative analysis of brands and agencies with experience purchasing games advertising. The study found that advertisers view games advertising as a measurable, brand safe medium that is effective across the entire consumer journey. Marketers can no longer afford to ignore this medium if they want to reach the more than 200 million U.S. consumers that play video games.”
Zoe Soon, Vice President, Experience Center, IAB added,
“Our Creative Guidelines and Best Practices in Advertising in Gaming aims to help preserve the Player First ethos and help brands get it right when activating in games. From interactive overlays to rich media experiences, we’re providing guidelines and identifying best practices to ensure ads enhance rather than disrupt gaming. By encouraging collaboration within the gaming and advertising communities, we’re building a future where ads not only meet brand goals but also contribute to a gaming journey that everyone can enjoy.”
IAB Tech Lab Launches Working Group to Update India’s DPDPA 2023
A new era of data protection was ushered in when India’s Digital Personal Data Protection Act (DPDPA) went into effect on August 11, 2023. Digital advertising is anticipated to be significantly impacted by the law. To update the DPDPA 2023-specific details, the IAB Legal Affairs Council plans to form a dedicated working group. It will be formed under the Cross Jurisdiction Privacy Project (CJPP) – India. Meanwhile, brands and agencies will collaborate to understand how they must comply with the new legislation.
IAB’s global collaboration
IAB, IAB Tech Lab, and IAB Southeast Asia and India teams will make up the India chapter. It started a cooperative process in February and requested everyone’s approval before going public. It has asked for collaborative input from all members. This is especially policy teams, on comprehending and interpreting Indian law for the Global Privacy Platform (GPP). This has led to the creation of the GPP. It combines regulations from the General Data Protection Regulation (GDPR) and other sources. Furthermore, it ensures that multinational corporations operate seamlessly across regulatory landscapes.
Global members of the IAB Tech Lab are inherently included in this working group on technology and policy. These include industry heavyweights like Google and The Trade Desk (TTD). But its objective is to promote involvement from companies that are specific to India, like brands and local ad tech providers like ESPs or proprietary ad stacks like The Times of India.
Valuable local and international insights
It is anticipated that the upcoming CJPP – India chapter will give professionals from both local and international businesses valuable insights into how India’s recently passed privacy law is being implemented in the digital advertising industry. Its main goals are to update the CJPP – India chapter and provide legal inputs to improve the Global Privacy Platform (GPP) technical specification by the IAB Tech Lab. The latter will include a special section that addresses the implications of the DPDPA.
CJPP provides a summary of digital advertising regulations across several jurisdictions, including the US, Europe, and Brazil. It was developed following a thorough policy analysis based on regional legislation, such as India’s DPDPA, in cooperation with local IABs in the US and Europe. Currently, that cooperation is being expanded to include IAB Southeast Asia.
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Expert Insights
According to Michael Hahn, EVP & general counsel, IAB Tech Lab, the chapter in the CJPP compendium needs to be revised to better reflect the new legal framework. The DPDPA raises the bar for privacy regulations in the industry. Moreover, it highlights how important it is to consider how to communicate customer privacy preferences throughout the digital ad ecosystem. It aims to improve the legal inputs for the GPP technical specification to establish accountability. As a result, publishers, ad tech intermediaries, and advertisers will be able to connect seamlessly and ensure that consumer privacy preferences are followed in compliance with local laws.
The CJPP has been one of Hahn’s most important initiatives. According to him, the project’s goal is to simplify legal comprehension and communication in the intricate world of international digital advertising.
IAB Tech Lab’s executive vice president, product, and chief operating officer Shailley Singh stated that the country’s new digital laws have made the establishment of an Indian chapter imperative.
Handling personal data with IAB Tech Lab
It is anticipated that the legal inputs for the India section of the IAB Tech Lab’s GPP technical specification will enable industry players to send out signals about the proper handling of customer personal data. Contractual agreements can utilize this information to incorporate assurances and guarantees about these signals. Furthermore, it is anticipated that this procedure will establish the foundation for a technical framework. This will guarantee market compliance.
IAB Tech Lab will encode the results into a transparency and consent string after CJPP and policy formulation. This string permits usage for things like behavioral advertising and data selling. Responders are informed of acceptable data usage and advertising when this encoded string is sent along with the ad request, which is selected by the user.
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Here’s what they said
Shailley Singh, executive vice president, product and chief operating officer, of IAB Tech Lab said,
This chapter will address the impact on the framework, creating specific elements for India to be integrated into the GPP, ensuring uniform functionality worldwide. The challenge is to align the consent management framework with the global standard. Our approach involves active engagement with our member community and not isolated decision-making. This process ensures a thorough collaboration, incorporating diverse perspectives and legal interpretations. We invite all entities in the advertising realm—publishers, agencies, brands, and Indian ad tech companies—to actively engage in this initiative
Furthermore, she added,
Previously, we adhered to an international framework, but now, with the need to adapt to India’s laws, adjustments are required. The GPP includes a general header for ad origin and consent details, with specific sections for each jurisdiction. A dedicated section for India will be added, ensuring accurate decoding of user permissions from the numerical string when impressions are served in India.
Michael Hahn, EVP & general counsel, IAB Tech Lab commented,
Collaborating with IAB Southeast Asia and India, our objective is to offer the market an initial understanding of how the new Privacy Law applies to the digital ad industry. Drawing on our expertise in understanding data flows, we aim to provide an in-depth analysis, building on our prior work in 11 jurisdictions. Given the timing, this analysis stands as one of the earliest post-law implementation publications. The genesis was a practical problem – the disconnect between Chief Privacy Officers of global companies based in the US and local lawyers engaged overseas. It aimed to bridge this gap by analysing privacy laws within the digital ad use case, addressing concerns around identity, personal information, and data storage. Establishing working groups over a year, we navigated complexities across 11 global jurisdictions
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