Why Gaming Is Becoming Increasingly More Important To Tech Companies

Gaming has exploded over the past two years and shows no signs of slowing. Despite the continued rise of gaming, other tech, and media offerings have begun to see a significant slowdown, partly due to consumers becoming increasingly price-conscious coupled with a shrinking pool of potential subscribers/users.  To combat this and increase the engagement of ...

Hector Almeida, GM EMEA2022-07-15

Gaming has exploded over the past two years and shows no signs of slowing. Despite the continued rise of gaming, other tech, and media offerings have begun to see a significant slowdown, partly due to consumers becoming increasingly price-conscious coupled with a shrinking pool of potential subscribers/users. 

To combat this and increase the engagement of its current userbase, there is now a growing trend amongst tech companies to turn to gaming. Gaming presents a unique opportunity for companies such as TikTok to increase ad revenue and ARPU, and companies like Netflix may see it as a novel marketing tool to help reduce churn and utilize their current and future IP as a way to help justify a paid subscription. 

Ultimately, it’s good news for 3rd party developers, particularly those such as Zynga and other hypercasual studios whose games are accessible to a broad userbase and easily implemented in-app. 

Subscription

Subscription businesses like Netflix are susceptible to churn, so engaging the current user base is essential. Content is king, and diversifying content through gaming will help keep users on a platform. Keeping content fresh and relevant has always been a challenge. However, it is promising to see an appetite for this type of offering, particularly with the exclusive content cross-overs by Netflix’s own IP. Stranger Things, for example, has its own game, and with a new season just launched, the consumption of content on this IP will skyrocket. 

Many tech companies can look to Netflix’s model as a good example of how churn can impact a business’ bottom lines. Countering this with gaming has proven successful thus far, with Sensor Tower reporting that Netflix Gaming has reached a respectable 13 million downloads – highlighting the potential for gaming to be scaled. 

While still in its infancy, Netflix Gaming has decided it will be mobile-first as this will increase accessibility as other mediums such as TV have functionality limitations. In addition, developers considering Netflix Gaming in the near future will likely not have to worry about monetization lending itself to increased adoption. 

The gaming medium has evolved in the past few years to one where there is an active and engaged community, but only if the price/offering is right. There are also a lot of opportunities for tech companies to increase their Average Revenue Per User (ARPU) by tailoring their platform to gamers.

Social and entertainment apps

Take TikTok, for example; while TikTok does not have a user growth problem like Netflix, it is being proactive in its approach to app engagement, time spent in-app, and alternative methods to grow its advertising business.

The entertainment app tested HTML5 games, a format often seen in minigames and playable ads. This seems to suggest hypercasual titles will be a focus considering their accessibility, ease of use, and implementation in the app. TikTok’s partnership with Zynga is also a testament to this. It’s ultimately early days for TikTok Gaming; although this could be ramped up quickly, ad-supported games are conceivable. 

Marketing content that complements its current offerings and helps keep users in-app seems much more viable in the short term. Utilizing gaming as a marketing tool is an exciting approach, with the ultimate goal of keeping users engaged and generating revenues from subscription and marketing content.

The fact that so many companies are pivoting to gaming as a means to either attract or retain users is a good sign for the industry. Implementing games will be seen as accessible, opening up new user demographics that may not have been so easily attainable in the past. The tech industry is at a crossroads, where product diversification will be paramount to suit these new gaming opportunities, as gaming has become one of the main ways to keep users engaged with high revenue potential.

Thus far, Mintegral has helped over 5,000 worldwide advertisers and more than 50,000 leading apps to acquire high-quality users at scale in global markets including Europe, America, and the APAC region. Our clients include Voodoo, Outfit7, SayGames, iDreamSky, CrazyLabs, Lion Studio, Zynga, and Alictu, among others. Mintegral’s data management platform has an average of more than 2.2 billion daily active users and over 100 billion daily ad requests.

If you would like to work with the Mintegral team on user acquisition, monetization, or creative solutions, contact us today.

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Hector is GM EMEA at Mintegral and brings a wealth of knowledge on mobile advertising. Before joining Mintegral held roles at both Smaato and Fyber.
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