In the world of online gaming, it seems advertisers too have levelled up their game as programmatic advertising is the new Most Valuable Player (MVP). “As hypercasual and hybrid games are heavily dependent on advertising, we have a lot of available inventory which we sell to other publishers who wish to target our set of players. And on the other side, we advertise on various networks targeting players who wish to play our games. So for us, programmatic advertising plays a key role as it helps us in targeted advertising, real-time bidding, dynamic creatives and cross-platform targeting,” Mohit Sureka, founder and CEO, Spiel Studios, told BrandWagon Online, adding that these tools help the company in lowering its cost per thousand impression (CPM) at the time of buying inventory. The company claims that it is crucial to have the lowest CPI (Cost per Install) so that it can maximise the profit from every player.
Currently, the world of online gaming has an array of options from casual to play-to-win, esports, among others.
Bullseye!
For industry observers, programmatic advertising offers scaled performance. According to industry experts, the adoption of programmatic media buying allows online gaming companies to have increased flexibility and more control over their creatives and optimisation capacities. Add to this the increase in reach, as demand-side platforms (DSP) aggregate inventory from a wide range of publishers, giving advertisers access to a large and diverse pool of users. Typically DSPs are automated ad-buying platforms, where advertisers and agencies go to purchase digital ad inventory. DSPs are integrated into multiple ad exchanges. “Online companies in general are uniquely positioned to extract more value than brick-and-mortar businesses from programmatic because of the availability of real-time data. Since the assets these companies use to produce value live online, their client base is engaged holistically via the Internet. This allows ad tech vendors such as DSPs and ad servers to leverage consumer data in real-time to create personalised and timely experiences that are also compliant with privacy regulations,” Rob Kay, vice president, customer success-APAC, Integral Ad Science, said.
Furthermore, in 2022, the digital advertising industry across India spent around 58% of its ad budget on direct media purchases, while the remainder was spent on programmatic purchases, as per a latest study by market research firm, Statista. Overall, projections indicate that the industry will increasingly switch to programmatic advertising over the years to come, with a market share of 44% by 2024.
While some claim that working with agencies is easier, a few online gaming has set-up their own shop for better management. “Gamezop has always maintained an in-house approach to ad operations, handling over 300 million ad impressions monthly necessitates a dedicated team that can optimise our platform for both user experience and revenue generation. By understanding advertisers’ specific goals and tailoring our ad placements to maximise their ROI, we have established ourselves as the gaming publisher of choice for these industry giants,” Gaurav Agarwal, co-founder, Gamezop, explains.
From formats to budget – programmatic keeps it afloat
Online gaming companies claim to have cashed in on a range of formats of advertising ranging from display to video. Moreover, online gaming companies claim the fact that programmatic allows the usage of different formats of ads, it helps to weave in during the game-play. “In our games, we sell all kinds of inventory, ranging from banner ads, video ads and interstitial (full screen) ads. Video ads are among the highest in terms of CPM, and also offer the highest conversion as the players can watch the gameplay before they choose the install. Interstitial and banner ads work well for retargeting,”Sureka added.
To give a perspective display ads range from full-page interstitial ads to unobtrusive 320×50 ads which appear at the bottom of a page. Similarly, video ads could be in-stream (appearing within games, such as between levels) or out-stream (appearing on the game selection page). Online gaming companies claim that video ads generally generate higher revenue than display ads and are strategically placed to capture user attention without disrupting gameplay or browsing flow. “Video ads generally generate higher revenue than display ads and are strategically placed to capture user attention without disrupting gameplay or browsing flow. Gamezop’s parent company also operates other products, including Quizzop for quizzes, Newszop for news, and Astrozop for astrology. The display and video ad sizes used across these products vary depending on each product’s unique UI and user demographics,” Aggarwal, said.
As defined by online gaming companies, programmatic further allows these firms to keep a tight control over ad-budgets. Typically, the CPM (Cost Per Mille) model in programmatic advertising provides transparency, allowing online gaming companies to control costs and optimise budget allocation. Compared to traditional methods, the CPM model ensures more efficient spending, particularly in reaching niche gaming audiences. This flexibility enables companies to adapt budgets based on campaign performance and audience behaviour. To be sure, most digital advertising follows CPM (Cost per thousand impressions), CPC (Cost per Click) and CPI (Cost per Install) models. CPM helps in understanding how well the ad is performing in terms of creatives and user targeting. “The goal is to keep CPM as low as possible so that we can show more ad impressions by spending the least amount. Targeting the correct set of players is critical to lower advertising cost, which is not possible in traditional advertising.For instance, in case of an action genre game we can target users who are male, aged between 15-25, who play Call of Duty or other action games, and people who have responded to other action game ads,” Sureka opines.
Interestingly, online gaming companies claim that gradually artificial intelligence is also seeping into the world of programmatic advertising. “AI plays a crucial role for online gaming companies within programmatic advertising. It enables personalised ad content, tailoring messages based on user behaviour, preferences, and gaming patterns. Machine learning algorithms optimise ad placements, ensuring that advertisements resonate with individual users, leading to higher engagement and improved campaign performance,” Sumon K Chakrabarti, CEO and co-founder, Buffalo Soldiers, said.
At the end of the day, while monetization remains the top priority, these companies have the maintain a fine balance between RoI and intrusion. “ Online gaming companies can use non-intrusive ad formats, such as banner ads and pre-roll ads, which are less likely to disrupt the gaming experience. Also, Gaming companies should limit their ads per session to avoid overwhelming players,” Kay, noted.