With the launch of its free games arcade, ‘Playables’, YouTube becomes the latest brand to tap into the marketing power of gaming. At launch, the Playables arcade featured over 75 games, including Angry Birds Showdown and Cut the Rope, that users can play for free on mobile or PC.
YouTube, like other brands such as Netflix, clearly sees great potential in games to help them achieve their retention, acquisition, and revenue goals. So why do gamified experiences hold such allure for brands? And what can gaming studios do attract brands running gamified campaigns?
There are several factors at play here, not least the fact that humans are predisposed to enjoy playing games. In his book, Outliers, Malcolm Gladwell revealed that by the time they reach 21, the average human will have spent up to 9,000 hours playing video games, and only 2,000 reading books. , Digital Turbine and Apptopia found that 70% of consumers are mobile gamers, and that they spend more time per day playing mobile games (28 minutes) than they do on either Facebook (20 minutes) or TikTok (17 minutes). Why? Because games, after all, are fun. When we play, and especially when we win, or complete a level, the brain releases dopamine, a neurotransmitter associated with pleasure and contentment.
Regular engagement drives loyalty
For these reasons, companies who deploy games in their marketing activities find they are extremely sticky, encouraging more regular engagement with the brand, which is a critical factor in enhancing customer lifetime value (LTV). By incorporating game-like elements into non-gaming contexts, businesses can create an environment where users are active participants, rather than passive consumers.
This relationship between engagement and monetization is crucial for businesses looking to maximize their revenues. An example of this is in KFC “Shrimp Attack”, which generated a 22% redemption rate and a significant increase in revenue compared to the previous year. Retained users are more likely to engage with monetization strategies, such as in-app purchases, subscriptions, and advertisements. Frequent interaction with a brand boosts customer loyalty and increases the likelihood of users spending more over time.
When convenience store chain, CostCutter, ran a ‘Bringing Summer Home’ campaign in 2020 incorporating instant win and prize draw games with rewards such as barbecues and spas, it generated 340,000 email registrations (against a target of 100,000), and saw over 8,000 hours of engagement time, with 3,000 clicks to a Store Locator, and over 2,000 clicks to blogs and recipes.
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In fact, gamification can work for almost any company in any industry, and the type of game the brand offers can be designed to match the interests of their customers. Just as the ‘Monopoly’ game ticks all the right boxes for McDonald’s, the slightly more erudite ‘Wordle’ is, in exactly the same way, bang on the money for the New York Times’ audience.
Leveraging the gamification opportunity
So how can gaming studios tap into the gamification trend? A good place to start is by targeting brands in verticals that have already shown enthusiasm. It is easy to argue that gamification can work for any brand in any vertical, but some seem keener than others. Quick-service restaurants (QSRs) and retail, as referenced above, find that gamification is a great way to engage their customers.
Fashion is another vertical predisposed to gamification. In the spring of 2020, as the world went into lockdown, fashion labels Mark Jacobs and Valentino, unable to stage real fashion shows, used Nintendo’s ‘Animal Crossing’ social simulation game to show off their latest collections. Pop-up stores in the game enabled players to buy virtual versions of their designs. Meanwhile, Tommy Hilfiger, shoe-maker Clarks, L’Oreal Group, Lacoste, and Stephanie Gottlieb are just a few of the fashion and jewelry brands to have launched gamified stores and experiences in the metaverse.
Vast potential
As companies continue to explore innovative ways to incorporate gamification into their strategies, the potential for brands to enhance user engagement and build loyalty with their customers remains vast. For gaming studios, the potential for attracting big-budget branded, gamified campaigns is equally exciting, and potentially lucrative.
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