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A recent study from Dentsu shows the impressive performance of gaming streaming giant Twitch in terms of brand recall and preference. With the gaming market poised to skyrocket to a staggering $320 billion by 2026, understanding the dynamics of reaching gamers could offer brands a significant edge in advertising.
But delving into Twitch marketing still poses problems for many advertisers. Compounded by recent upheavals due to several layoffs announced since the dawn of 2024, marketers might find themselves hesitant. Microsoft’s decision to part ways with 1,900 employees from Activision Blizzard and Xbox, Riot Games’ announcement of an 11% reduction in its workforce, and Twitch’s trimming of 35% of its staff might raise eyebrows.
Yet, according to Dentsu’s insights, the potential rewards may overshadow the challenges.
“Gaming has really high attention levels compared to some of the other channels that we’ve done research with in the past,” said Kevin Villatoro, director of global media partnerships for Dentsu Media U.S. “And for me, that’s a huge flag that more advertisers need to augment their current plans with gaming inventory. A lot of this stuff can be bought programmatically.”
“A lot of advertisers buy programmatic inventory, why not test and learn some gaming if it’s already in there,” said Kevin Villatoro, Director of Global Media Partnerships for Dentsu Media.
The research endeavour titled “Play Attention: Calling Focus to Gaming,” conducted in collaboration with Lumen, sheds light on the attention garnered during live-streaming on Twitch. The study delves into benefits of rewarded video via Activision Blizzard and the effectiveness of intrinsic in-game advertising through Anzu. Leveraging eye-tracking software, attention levels during ads were meticulously monitored across five key markets.
In this landscape, advertising on Twitch transcends standard pre- or mid-roll placements. To truly captivate audiences, an understanding of reaching them is indispensable. Moreover, gaming advertising extends beyond live-streaming, encompassing diverse formats such as rewarded videos and intrinsic in-game placements, each yielding distinct outcomes.
Ads aired during live-streams on gaming platforms boast an impressive average brand recall of 57%, markedly surpassing the 38% benchmark observed by Dentsu across various other advertising mediums including social, online video, audio, and display. Furthermore, ads demonstrate effectiveness. Mid-roll advertisements prove just as impactful as their pre-roll counterparts. Notably, once surpassing the five-second mark, 15-second spots prove as efficient as 30-second ones.
