Mobile gaming could create a valuable advertising channel - survey
New report highlights significant marketing opportunities
As the mobile gaming market continues to grow unabated in markets across the world, a new report from eMarketer has revealed that it presents substantial revenue opportunities as well as a valuable outlet for precision targeted advertising.
The report suggests that the US market, which continues to show rapid growth, will generate revenues in excess of USD 1.5 billion by 2008 - rising sharply from the estimated USD 600 million in 2005. As the global market for mobile gaming increases, analysts are predicting a considerable increase in the advergame and in-game advertising business model already found online and in the traditional videogames market.
"As location-based and multiplayer capabilities develop, advertising to wireless gamers will be an exercise in precision targeting, helping to drive the value of mobile gaming beyond the revenue associated with game sales or subscriptions," stated James Belcher, eMarketer senior analyst and author of the Mobile Gaming report.
eMarketer's report categorises the typical mobile games player, offering a usage breakdown of the type of audience attracted to the genre. According to its research, over half of all mobile gamers are teenagers (a key demographic for advertisers and marketing companies), and in terms of content, the most important revenue driver is puzzle games and casual parlour games, which are favoured by women rather than men.
The research notes however that the proliferation of handsets and differing wireless protocols in the US is the main reason for the continued production of simple parlour games, placing the US market at a disadvantage when compared to some of the more advanced, 3G networks and complex, 3D-enabled mobile devices.
"The US is at a disadvantage relative to other mobile markets, " Belcher stated. "Multiple wireless protocols and handset technologies make it difficult to create games which work reliably on all phones. This is one factor that has made simple puzzle games the most popular type in the US so far. These games have low technical requirements and run on a wide variety of phones."
As the emergence of more advanced handset technologies continues to penetrate the market, so to does the opportunity for lucrative revenue channels through co-branding, sponsorship and in-game advertising services.
"Powerful branding opportunities arise with the potential to reach a highly-targeted audience wherever they happen to be. Including, for the first time, places outside of home and work," Belcher concluded.