Game-streaming sponsorship could be the next FMCG advertising goldrush

The video games market will grow from *US$131bn in 2018 to $305bn in 2025, at a compound annual growth rate (CAGR) of 13%. This presents a significant sponsorship opportunity for FMCG brands, according to GlobalData, a leading data and analytics company.

A number of different trends are converging that will propel global growth for everything video-game related. Gamers will have the release of the PlayStation 5 and Xbox Series X in late 2020, as well as Nvidia, Google and Amazon’s cloud-based game-streaming platforms. Mobile gaming continues to move from strength to strength, and the introduction of 5G will expand the opportunities for mobile users and the cloud.

Video games and esports are booming, with increasing numbers of consumers wanting to watch pro-gaming online or attend live esports events. The demography of this group is not uniform and there is an opportunity for FMCG brands to engage with a diverse and dedicated fanbase.

Ryan Whittaker, Consumer Analyst at GlobalData, explains: “The increased prevalence of smartphones and tablets has led to more casual gaming on mobile devices across multiple demographic groups. This is a very substantial cross-sectional group to target through sponsorship and advertising. What we expect to see more of is the increased targeting of main shoppers in the UK, gamers who are usually female and play games on their mobiles.”

In 2017, Radox won an award for the Most Effective Native Advertising Campaign through their campaign of sponsored content in Angry Birds. This campaign combined Angry Birds gaming mechanics with product USPs and algorithms that targeted when female shoppers were most active. Free-to-play content that connects to in-game rewards is also popular with advertisers, and would be a logical opportunity for the next generation of streamed gaming content. Gaming studios could enter tie-ups with FMCG companies for free-to-play streaming periods or unique and relevant sponsored content.

Whittaker concludes: “As a cultural product, gaming dwarfs both Hollywood and music combined, and the arrival of 5G is only likely to increase its reach. FMCG brands should contemplate how they can utilize this to engage with their customers.”

*GlobalData’s report: Video Games – Thematic Research

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