The Evolution of Game Advertising: Trends to Watch in 2023

According to Gamesight's CEO Adam Lieb and CMO Nicole Yang, the most significant story in game advertising is the rise of TikTok. In just two years, the platform has become a staple in nearly every game marketer's budget. Lieb notes that TikTok's focus on performance marketing from its inception has driven its success. The platform's ability to optimize ads based on user engagement and conversion rates has made it an attractive option for advertisers. However, as TikTok's popularity grows, so do its advertising costs. Despite its lower conversion rates compared to other platforms, TikTok's affordable ad prices and integrated ad format make it an appealing choice for game developers. Yang emphasizes that TikTok is primarily used for awareness-driven campaigns, with developers needing to be mindful of the platform's unique content format and fleeting trends. In contrast, Twitter, although having a higher conversion rate, is a relatively small player in the game advertising space. The platform's new performance marketing product and aggressive matching funds programs may, however, bring more stability and attract advertisers. Lieb and Yang also highlight the importance of considering the type of ad and content on each platform, as conversion rates and effectiveness can vary greatly. For example, sponsored content deals with content creators lead to the highest conversion rates, while traditional in-stream display ads have much lower conversion rates. Reddit is another platform that Lieb believes is underutilized, with its unique audience and creative requirements making it an intimidating option for some advertisers. As the game advertising landscape continues to evolve, Lieb predicts that 2023 will be a 'reset year' with a focus on performance marketing, scrutinized budgets, and a more cautious approach to experimental advertising concepts.