Mastering Modern Game Marketing With Game Marketing Genie

Gaming will be THE industry to watch in 2023. Millions of consumers who used gaming to cope with the pandemic's uncertainty have continued to play for enjoyment as an integral part of their lifestyles in 2023.

Game marketing has also evolved to keep pace with these changes. Modern strategies like social media, influencer partnerships, data, and player insight-driven marketing are leading the way for game developers to reach their gaming audience. 

It will be interesting to witness how games and gamers continue to embrace, influence, and drive new developments in various industries impacted by gaming. We're also watching how game developers will rise to the challenges of game marketing to get their titles to the top of the charts in 2023. 

So, what does the future hold for you? Let's find out.

What's the gaming industry going to be like in 2023?

Based on the current trends and developments, various research analyses, and news reports from the gaming industry, it's likely that we will continue to see growth in the market. The primary drivers are advancements in technology and the increasing popularity of gaming across different demographics and platforms.

A steady rise in gamers

The year 2022 has been one of exponential growth for the industry, with mobile gaming loyalists accounting for 9 out of 10 gamers, raising a whopping 70% of app store revenue (source: Sensor Tower). 

According to the most recent statistics, there were roughly 3.09 billion active video gamers worldwide in 2022. 

In just seven years, that figure has increased by more than one billion (a 32% increase) and shows no signs of faltering in 2023. 

Naturally, growing markets are contributing more to this player increase (compared to more mature markets). The growing online population is a significant contributor to growth, driven by improved (mobile) internet infrastructure, more affordable smartphones of all specifications, and a growing middle class with a penchant for playing video games. 

Figure 1: The gaming population is steadily growing. Source: Truelist

Expected revenue growth in 2023 and beyond

All gaming sub-sections are expected to show positive upturns in revenue this year. Mobile gaming, F2P games, PC gaming, and gaming hardware sales are steadily growing. Here are some interesting statistics: 

• Experts predict the global gaming market will reach $256.97 billion by 2025.
• The global gaming console market is projected to experience a compound annual growth rate (CAGR) of 7.2% from 2023 to 2028, reaching a value of USD 74.29 billion by 2028.
• Analysts predict that the immersive games segment will generate $2.4 billion in revenue in 2024.
• The mobile games industry is expected to generate $138 billion in revenue by 2025.

Predictions for a looming recession

According to a recent report by Morgan Stanley, the gaming industry is expected to continue its growth in 2023, despite the potential economic downturn. The report notes that historically, the gaming industry has performed well during recessions, and this trend is likely to continue. The report cites the release of high-budget, high-profile games and next-generation consoles as factors driving this growth in the coming year.

Key growth areas

The Asia Pacific region is rising as the largest market share in the global gaming industry. India is expected to spend significantly on mobile gaming in 2023, making it the world's fastest-growing mobile gaming market. Japan, China, and South Korea show high market growth potential. Significant drivers include ongoing innovation in games and consoles and rising exports. 

Changing gamer demographics

The gaming industry is a rapidly growing global market with a wide demographic of players. According to a recent Entertainment Software Association (ESA) report, the average gamer's age in the United States is 35, while 45% of players are women. Further, the gaming industry is no longer just for children and young adults, as the number of older players continues to increase. Additionally, mobile gaming is the biggest sector of interest for most demographics. 

Esports is getting bigger

Factors influencing esports' market growth include increased live streaming of games, formidable investments, rising audience reach, better engagement activities, and infrastructure for tournaments. 

Profitable opportunities for influencers, gamers, event organizers, and game developers are sprouting as the industry goes professional. The current eSports gaming industry leaders are Dota 2, Fortnite, League of Legends, Counter-Strike: Global Offensive, Overwatch.

Figure 2: Esports is gaining traction with brands and players. Source: Grand View Research

Tech to pave the way forward

Technology will continue to play a major role in shaping the gaming industry in 2023. Technological advances have been a significant driver of the industry's growth in recent years, and this trend is expected to continue.

Some of the key technologies that will pave the way forward for the gaming industry include:

• Virtual and augmented reality: VR and AR technology will create new opportunities for game developers and marketers to engage with players and increase game realism. The active VR install base is expanding at a breakneck pace, rising from 27.7 million this year to 46.0 million by the end of 2024. Meanwhile, annual VR game revenues are expected to grow from $1.8 billion this year to $3.2 billion by 2024.

Figure 3: VR-based games will be a rising trend. Source: Newzoo

• Cloud gaming: Cloud gaming allows game publishers and developers to reach a wider audience, reduce costs associated with physical distribution, and offer a more flexible and scalable gaming experience.
• Artificial intelligence and machine learning: AI and ML technology will enable game developers to create more realistic and personalized gaming experiences. These technologies can create more complex and dynamic game worlds and allow games to adapt to the player's preferences and behavior.
• 5G and edge computing: 5G networks and edge computing will spread the gaming fever to more locations worldwide, causing wider adaptations of the gaming culture and sales of gaming-related paraphernalia.
• Blockchain: Blockchain technology will enable players to own and trade in-game assets, creating new opportunities for game developers and marketers to monetize their games.

How gaming is evolving and transforming

With as many as 3 billion people identifying themselves as gamers, with a large majority having the means to make spending decisions, the gaming industry is a breeding ground for pop trends and shifts in human behavior. The World Economic Forum believes that games can drive positive behavior change among the masses, vouching for gamers' ability to influence trends and consumer behavior and impact culture. 

From being limited to a hobby or pastime, it is now evolving into a content tank and means of earning for the more passionate community members. 

New content ecosystems

Primarily driven by esports players, gaming content creators, and live streamers, a new gaming content ecosystem is emerging. The rise of streaming platforms like Twitch and YouTube are major drivers of the content creation trend. These platforms have enabled gamers to share their gameplay and other gaming-related content with a global audience. Moreover, the increasing popularity of gaming among different demographics has also led to a growth in the number of content creators catering to niche audiences, such as family-friendly, educational, or female-oriented content. 

Hence, making a game "streamable" and focusing on content creation is essential to game development. Why? Because it provides a way for game developers to reach and engage with a larger audience.

This can drive interest and sales for your games and provide valuable feedback and insights for future development.

Additionally, by creating content, developers can leverage the creator's audience to provide paid marketing by sponsoring the creators to get their games in front of a large audience. This not only helps promote the game but also offers an opportunity for the creators to earn revenue, which can benefit both parties.

New monetization avenues

Another avenue that piqued players' interest is job creation, which makes the gaming industry lucrative beyond a hobby. This is due to several factors, including the growing popularity of gaming across different demographics and platforms and the increasing monetization opportunities in the industry.

Streaming platforms like Twitch and YouTube have also created new opportunities for gamers to monetize their content and build a following. Many popular streamers have been able to turn their hobby into a full-time career by monetizing their content through advertising, sponsorships, and merchandise sales.

Additionally, game developers and designers also have a lot of opportunities in the industry as the demand for new and innovative games continues to grow. Game developers and designers can work for game development companies or as freelancers.

Five strategies that are essential for modern game marketing

1. Influencer marketing

Influencer marketing has become an increasingly important strategy for modern game marketing. It allows game developers and marketers to reach a highly targeted and engaged audience, which is often difficult to reach with traditional advertising. These influencers have built trust with their followers, and their recommendations carry weight, which can lead to increased sales and downloads for the game.

Despite the slowing economy and reduced marketing budgets, brands will likely keep investing in influencer marketing. While they may reduce overall marketing budgets, brands plan to invest more in influencer partnerships to reduce overall marketing costs. This is because influencer content is the least expensive type of branded content.

Moreover, we expect to see a surplus of non-gaming brands joining modern game marketing in 2023. While Twitch or a similar streaming service may be the primary platform for gamers, they frequently have a following on other social media platforms such as Instagram and YouTube. Some brands that have already formed alliances include Samsung, Red Bull, and even Hershey's. A common connector between these brands is that they've partnered up with Ninja, a megastar influencer on Twitch. 

Our influencer marketing platform Atisfyreach offers solutions designed to help brands of all sizes from all industries unlock the full potential of the influencer economy. You can find influencers and plan, execute, optimize, and measure your influencer marketing programs from this one-stop solution.

Try it out today!

2. Video marketing

Video marketing can be a powerful tool for modern game marketing. It allows game developers and marketers to create engaging and informative content that effectively promotes a game to a target audience. Here are some ways video can be used in marketing content:

1. Game trailers and demos: Creating trailers and demos of a game can give players a taste of what the game has to offer and can help to build excitement and interest in the game.
2. Walkthroughs and tutorials: Video walkthroughs and tutorials can provide players with an in-depth look at the gameplay mechanics and features and help educate them on how to play.
3. Let's play videos: Let's play videos, in which a content creator plays and comments on a game, can be a great way to showcase the game's features and mechanics and give potential players a sense of what it's like to play the game.
4. Animated videos: These are engaging and visually stunning content that can effectively promote a game.

Our Red Apple Reading Case Study is a classic example of how we used video for game marketing to increase conversions and drive awareness. Read more here. 

3. Game monetization

Developers can employ multiple video game monetization strategies to ensure the success of their video game development and marketing efforts. Popular strategies game developers and marketers can use to monetize their games include:

1. In-app purchases: Players can purchase virtual items within the game, such as new weapons, levels, or characters. This is a popular strategy for mobile games and free-to-play games.
2. Microtransactions: Players can purchase small, incremental items or bonuses within a game, such as virtual currency or power-ups.
3. Subscriptions: Players can pay a regular fee to access premium content or features within a game. This is a popular strategy for online games and mobile games.
4. In-game advertising: Game developers and marketers can generate revenue by displaying ads within a game. According to Ad Exchanger, in-Game advertising may experience a growth spurt in 2023. Having innovative advertising strategies can help small game studios stand out. 
5. DLC (downloadable content): Players can purchase additional content like new levels, characters, and items to enhance their gaming experience. This is a popular strategy for console and PC games.

Want to increase your monetization in 2023? Read 2023 Mobile Game Monetization: Boost Your ROI With These 10 Key Findings.

4. Paid advertising

Paid advertising can be a powerful tool for game marketing as it allows game developers and marketers to reach a large and targeted audience cost-effectively and measurably. Some of the ways paid advertising can help game marketing include:

• Increase the visibility of their games to a large and targeted audience
• Targeted campaigns based on audience demographics, interests, and behaviors
• Track the effectiveness of their campaigns and adjust their strategies 
• Cost-effective than other traditional advertising and better ROI

There are three things to master to market your game using paid advertising campaigns. You must:

1. Understand your target audience.
2. Create outstanding creatives.
3. Learn how to run successful advertising campaigns across various ad networks. 

A game marketing agency can help you get the most benefits from your ad budgets. 

Want an in-depth understanding of paid marketing campaigns? Read our  Complete Video Game Paid Advertising Guide here. 

5. UGC

User-generated content, or UGC, is revolutionizing the gaming industry by shifting how consumers interact with digital worlds. Gaming platforms are capitalizing on this trend by creating opportunities for players to not only play games but also create and build new content and gaming infrastructure.

Three significant societal macro trends are driving this shift toward UGC content development:

1. The creators-to-consumer ratio is rapidly decreasing, making it easier for anyone to create and share content.
2. Game development is moving towards smaller, more specialized teams, creating experimentation and diversity in new games.
3. It is now trendy to be a creator, is socially acceptable and even desirable, turning more social media users into content creators.

To stay competitive in the gaming industry, developers and marketers must recognize the importance of community-driven marketing and leverage UGC as a vital component of their campaigns. Various platforms are available for this purpose, from core gaming communities on Reddit or Discord to more casual audiences on Instagram or TikTok. UGC on these platforms can create a solid and engaged community around a game and drive interest and sales.

Make UGC work for your game. Read more in UGC Marketing: How to Get Your Players to Make User-Generated Content.

Get your game on!

But wait, that's not all! Find out more in The Ultimate Guide to Game Marketing: Everything You Need to Know.

Ace modern game marketing with Game Marketing Genie's proven expertise

As the gaming industry continues to grow steadily in 2023, game developers and publishers need to step up their marketing efforts to stand out in the competitive market and meet the demand for high-quality titles. Game Marketing Genie can help by providing expert marketing services for games of all sizes and genres. Our comprehensive range of marketing solutions will give you the tools you need to fully realize your games' potential and reach a wider audience.

Book in a chat with us today!