Media and Advertising Amid Coronavirus: Part 3
KEY TAKEAWAYS
Video Games and Video Game-based media such as Twitch are outlets, by virtue of being so new, that have been used by few advertisers at scale. Lower cost of entry and high ROI in addition to engagement make these platforms smart ways to align with leisure content at home in an effective way.
E-sports, in the absence of real sports, represents a real opportunity for brands who traditionally used sports aligned live TV to engage with audiences in a new way. Sponsored tournaments and game streaming parties are just a few of the ways to not only reach audiences but also to build brand affinity with positive alignments.
Above all, across media -- whether it's changing a mix to skew towards TV/OTT and Cross-Platform or incorporating new outlets like gaming systems -- it will be crucial for brands to get creative and expand their tactics vs. panic and pull away.
Interview with Jessica Ragusa, Vice President of Media, Wit Media
In the midst of the ever-changing circumstances across our nation during the coronavirus pandemic, we are looking at how this outbreak will change Americans’ media habits. This is Part 3 of a 3-part series in which I sat down with my colleague Jessica Ragusa to get a better understanding of what the coming months will bring.
In Part I and II, we discussed changes in how people might interact with audio and video-based content as well as social media platforms. Are there any other trends concerning media consumption that you think we will see during the coronavirus outbreak?
That’s a great question, and I think the answer lies in looking at what people are going to miss most about their normal daily lives. The obvious example is sports. With global cancellations of these events, we need to look at opportunities for people to still get their ‘sports fix’ – the easiest way is through digital gaming. There is tremendous opportunity in this space, and not just with sports games, but across all types of games and consoles.
There has already been a 75% increase in video game usage during peak hours by since the quarantine first went into effect. During the same time, web traffic increased only slightly, while social media remained static. This data indicates that the biggest usage jump was in gaming, which represents untapped potential for advertisers.
Do you view gaming differently from the other types of media we’ve discussed?
I think there are some similarities and some differences. The similarities lie in the fact that gaming is another stream of data that is going into a household. Like advertising on other platforms, we have the data about users so we can craft targeted messages; gaming is just one more outlet for the brand to connect with their customer base.
But the big difference, I think, is the ability for gaming to fulfill the need for community that many people have. Digital gaming, and especially platforms like Twitch that have robust online communities that allow users to meet new people, and communicate with someone outside of their home. And that is what we see them doing.
Last week, both Twitch and YouTube gaming also increased their viewership between 10%-15%. For advertisers, this is a tremendous opportunity to personalize messages within the gaming world. Gaming is an affordable option that might not seem obvious to many brands initially, but can still be a great fit for the right ones. And it is another chance to echo your digital advertising across multiple platforms within the home.
What do you think advertisers need to understand about gaming and the types of opportunities that exist for messaging?
I definitely think gaming is an often-overlooked medium, which may be true even without the coronavirus epidemic having such a big impact on everything. But it’s also somewhere where brands can get a tremendous ROI. Gaming platforms have completely different advertising pricing structures. In many instances, you can get a great value and reach a much larger audience more effectively on this platform than you can through other channels.
The other thing that I think is important to understand is that you can get creative with it. In the absence of our regular sporting events and playoffs, there are opportunities for people to engage in a similarly structured event, but online. There are enormous opportunities for advertisers in this space.
Do you have any final thoughts that you would like to add?
Well, it’s important to remember a few key things. It’s apparent that nearly everyone is going to be spending way more time at home over the coming weeks and months as the epidemic unfolds. For brands and advertisers, this just means shifting strategies and finding new ways to reach everyone while they are at home. The other thing I think is important is to stay creative. There are going to be many opportunities to think outside the box and attract audience attention in new ways. So, just stay open to it and understand that reaching your customer base and fostering a sense of community can still be achieved – it just might look a little different than it usually would.