2023 is gearing up to be a banner year for the gaming industry, with advertising revenue projected to climb to $9.5 billion. More than half of Americans are now digital gamers, and the skyrocketing popularity of gaming shows no signs of slowing.
This week, the biggest brands in gaming and hundreds of advertisers came together in NYC to discuss the future of gaming at the second annual IAB PlayFronts. One of the biggest takeaways was that reaching gamers has become a critical part of all CTV campaigns. Gaming’s immersive environment and addressable audiences make it a must-have for marketers looking to drive omnichannel impact.
Here are some key takeaways from the IAB PlayFronts that shed light on the evolving gaming market and recommendations for how marketers can reach this valuable audience.
Next-gen gamers are a key audience for marketers
Next-gen gamers (those playing on 9th-generation consoles such as Microsoft ‘s Xbox Series X and Series S console family and Sony ‘s PlayStation 5) are driving gaming growth. The number of next-gen active gamers jumped 81% YOY on Samsung TVs in Q4 2022. This will only continue to grow as gamers search for the best gameplay and technology available.
For marketers, this cohort is an important advertising audience. They skew young, are tech-savvy and are purchase influencers. Importantly, they spend more time gaming than the previous generation of console gamers and are more engaged. They typically clock three times as many gaming sessions as those with older consoles.
Plus, consoles are a gateway to other activities beyond gaming. Sixty-two percent of heavy gamers stream TV content on their consoles. Some even use consoles to visit social media sites and browse the internet.
Gamers are embracing ad-supported content
In the Samsung universe, gamers overwhelmingly choose streaming (82% of time spent) over linear (18% of time spent). This preference has major implications for marketers. Media plans that heavily rely on linear television risk missing 8 out of 10 gamers.
Notably, gamers spend more time with ad-supported streaming services (AVOD) than with linear or subscription-based streaming services (SVOD), averaging nearly two hours a day watching AVOD services on Samsung Smart TVs.
Meanwhile, AVOD services hit an impressive 85% reach among gamers. This presents a ripe opportunity for brands – including those outside the gaming industry – to gain incremental reach with highly receptive gaming audiences.
Overall, the advanced capabilities of gaming consoles and gamers’ rapid adoption of ad-supported streaming means new opportunities for marketers and game publishers. In fact, our research found 73% of gamers rely mostly on streaming services for their TV viewing. This creates a CTV imperative for reaching the gaming audience.
Winning the next-gen audience
To help advertisers seize gaming’s big moment and build connections with this niche audience, Samsung is helping to pioneer the new getaway for interactive entertainment, as streaming becomes even more ubiquitous. We built the Samsung Gaming Hub, which offers advertising optimized for a gaming environment. The Gaming Hub Hero ad allows advertisers to capture viewers’ attention before they decide what to play in an environment that connects game discovery, consoles and streaming services all in one place.
Marketers can’t afford to overlook this crucial group of consumers. And as the gaming community grows, the opportunity to effectively engage with them across the channels they interact with most only becomes greater. We believe that Samsung Ads’ leadership in Smart TV and mobile innovation puts us in a unique position to help advertisers seize gaming’s big moment, reaching untapped audiences at scale and maximizing revenue potential.
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