The Evolution of Game Advertising: Trends and Platforms to Watch in 2023

When asked about the current state of game advertising, Gamesight CEO Adam Lieb and CMO Nicole Yang point to TikTok as a key player in the industry. Over the past two years, TikTok has experienced rapid growth, with nearly every game marketer now incorporating the platform into their budget. This growth can be attributed to TikTok's focus on performance marketing from its inception, allowing advertisers to track the effectiveness of their ads and make data-driven decisions. Lieb notes that this focus on performance marketing sets TikTok apart from other social networks, which have had to adapt to offer more data-driven advertising solutions over time. The technical aspects of TikTok's products and optimization also contribute to its success, enabling advertisers to communicate with the platform and target similar users who have engaged with their content. However, as TikTok has become a mainstay in the industry, it has begun to charge more for advertising, leading to higher costs for advertisers. Despite this, Lieb argues that the cost of ads on TikTok is still relatively low compared to other platforms, and the platform's unique ad integration and lack of opt-out options for ads make it an attractive option for advertisers. Yang adds that TikTok is primarily used for awareness-driven advertising, with developers aiming to reach a high volume of impressions and a wide audience interested in gaming content. She also emphasizes the importance of understanding the platform's unique format and cultural trends to create effective content. In contrast to TikTok, Twitter is seen as a smaller player in the game advertising space, despite its higher conversion rates. Lieb and Yang note that Twitter's ads revenue is significantly lower than that of Facebook and Google, and its user base is more niche. However, with the introduction of new performance marketing products and matching funds programs, Gamesight sees potential for stability and growth on the platform. The company also highlights the importance of considering the different types of advertising on each platform, as conversion rates and costs can vary significantly. For example, sponsored content deals with content creators have been shown to lead to purchases at a much higher rate than traditional in-stream display ads. Lieb suggests that Reddit is an underutilized platform for game advertising, requiring unique creative approaches to effectively engage with its audience. As the game advertising landscape continues to evolve, Lieb predicts that 2023 will be a 'reset year' for the industry, with a greater focus on performance marketing and proven strategies. With fewer games being released, publishers will need to ensure that each title is a success, and Lieb expects to see a more cautious approach to advertising, with less investment in experimental concepts and a greater emphasis on measuring the effectiveness of each dollar spent.