Game Advertising Trends in 2023: Expert Insights

In the realm of game advertising, TikTok has emerged as a dominant force, with its user base and advertising budgets experiencing rapid growth over the past two years. According to Gamesight CEO Adam Lieb, the platform's focus on performance marketing has been a key factor in its success, with TikTok prioritizing results-driven advertising from its inception. This approach has enabled the platform to optimize its products and technical capabilities, allowing for more effective targeting and conversion rate analysis. As a result, TikTok has become an essential component of many game marketers' budgets, with its large user base and relatively low advertising costs making it an attractive option for developers seeking to reach a wide audience. However, the platform's conversion rates are not as impressive as those of other platforms like Google, Twitch, or Facebook, with an average conversion rate of 0.96%. Despite this, the cost of advertising on TikTok is significantly lower, and the platform's unique ad integration and lack of premium subscription options make it an appealing choice for developers. CMO Nicole Yang notes that TikTok is primarily used for awareness-driven advertising, with developers leveraging the platform to reach a large audience and create impressions. To maximize their impact on TikTok, developers must be mindful of the platform's distinct format and the fleeting nature of its content, adapting their advertising strategies to accommodate these factors. In contrast to TikTok, Twitter is a smaller player in the game advertising landscape, with relatively low ad revenue compared to other platforms. Nevertheless, Gamesight sees potential for stability in Twitter, particularly with the introduction of new performance marketing products and aggressive matching funds programs for advertisers. The company notes that Twitter's traditional challenges in scaling marketing efforts may be mitigated by these developments, making it a viable option for game developers. Lieb and Yang emphasize that not all advertising platforms are created equal, and the effectiveness of different ad types can vary significantly. For instance, sponsored content deals with content creators have been shown to yield high conversion rates, while traditional in-stream display ads may have lower conversion rates but can still offer a strong return on investment. Reddit, a platform often overlooked by game advertisers, is highlighted by Lieb as a potential opportunity for developers to reach new audiences. The key to success on Reddit lies in creating tailored content that resonates with the platform's unique user base, rather than simply repurposing ads from other platforms. As the game advertising landscape continues to evolve, Lieb predicts that 2023 will be a year of reset, with companies scrutinizing their strategies, tactics, and budgets in response to tightened budgets and cancelled game projects. This shift is expected to lead to a greater emphasis on performance marketing and proven advertising concepts, rather than experimental approaches or brand-building efforts. Ultimately, the goal will be to ensure that every advertising dollar counts, with a focus on measurable results and successful investments.