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Gaming's rise in APAC,
Brands must learn to adapt fast,
Or risk being last.
New APAC gaming research shows in-game ads often turn gamers off
In-game advertising is making many Asia-Pacific gamers ditch gaming, according to new research from Omnicom Media Group (OMG) APAC.
The agency has unveiled a new research study, ‘Unlocking Gamers in Asia Pacific’, offering a deep dive into the gaming habits and preferences of over 12,000 respondents across 13 markets, including Australia, India, China, and Hong Kong. What's clear from the study is mobile gaming reigns supreme in the APAC region, with 89% of gamers preferring this platform. However, the research highlights a significant challenge for brands: in-game mobile ads are causing an array of gamers to disengage. Results showed most respondents find ads are too often causing them to stop playing the game.
The results are not all-inclusive. While Indian gamers perceive these ads as a positive experience, for example, their counterparts in Hong Kong find them uncreative and dull.
When they are exposed to advertising, many prefer in-game ads to be seasonal or on rotation in a game set up. OMG's research also points to the potential for brands to leverage in-game purchases or microtransactions, with nearly half of APAC gamers (47%) willing to make a purchase when there is a sale or when they need to power up (37%). About one-third will see an in-game purchase as gifts for special occasions or will purchase only when it's a limited time release (30%).
But while some remember the brand for a later purchase in the real world, OMG said others say such ads do not incentivise them to buy an item in the real world.
The study reveals not all APAC gamers identify as ‘gamers’ either. In South Korea, for instance, only 37% of respondents identified with this label. Brands are therefore advised to use different labelling such as ‘players’ or target gaming audiences based on subcultural behaviours when reaching out to different markets across the region.
While the report illustrates the dominance of mobile gaming, PC gaming does still hold sway among certain groups of gamers, particularly in China (69%), Hong Kong (65%), and India (43%). Consoles are the third most popular device among APAC gamers, especially in Australia and Hong Kong, both at 49%.
With ad revenue for gaming projected to reach US$100 billion in 2025, according to PwC, and mobile penetration in Asia Pacific expected to hit 70% by 2023, according to GSMA, OMG APAC’s Chief Enablement Officer, Nina Fedorczuk, stressed the importance of brands understanding the diverse nuances within the gaming ecosystem.
"For example, they can connect with friends via gaming over the weekends and be fully immersed in the experience but also play a quick puzzle game during a weekday commute. It is no longer enough to treat gamers as a niche audience because almost everyone is a gamer," she said. "Brands need to find the sweet spots for this audience, and think hard about how they can add value to the gaming experience, instead of blatantly interrupting it.” Another insight from the study is the importance of word-of-mouth in winning gamers’ hearts. Nearly nine in 10 (89%) gamers across the region finding game reviews from family and friends important. Influencers or players themselves (90%) are also instrumental in building credibility among gamers, especially in China, India, Indonesia, and Hong Kong.
The report also looked a solo gaming versus connection preferences, finding younger generations generally seek connections and more immersion, in their gaming time. For example, more than half (59%) are inclined to having in-game or person-to-person chats and 39% game with friends they know at least twice a week. Two-thirds will change game genres when playing with others.
On the other hand, most APAC gamers prefer gaming solo, especially the older demographics, with 45% of them gaming by themselves at least twice a week. 42% prefer quiet gaming experiences. OMG said it's therefore crucial for brands to tailor their gaming experiences for solo players mainly without the goal of driving or depending on communal gaming.