Monday, July 14, 2014

Gamification in Digital Advertising

Creativity in display advertising is on the rise. Ever so often, we hear about some engaging ad which captivates its targeted audience. We saw some interesting examples of captivating ads in Prof. Kagan's class. The idea behind all these ads was to increase user engagement. One such tactic to increase engagement is Gamification, which means bringing the mechanics of gaming to other context.

Bart Hufen, who wrote a book called 'A Brand New Playground' about using games as a marketing tool, discusses Gamification in digital advertising in detail in this article which he wrote in 2012 for the AdAge.

The goal of Gamification in advertising is mainly around brand recognition. The inventory for gamified ads comes at higher cost. Not only the publishers charge a higher CPM, but also the development cost of such an add can run into thousands of dollars. The question that comes to mind is whether such an investment is justified especially when such advertising is geared toward soft metrics such as "brand recognition" which may not convert into dollars in the bank right away.

According to Bart, these ads usually attract a predominately female population between the age of 25 and 54, and this target demographic tends to be the high spenders in consumer packaged goods category. As FMCG (fast moving consumer goods) space is highly crowded, but include big market cap firms like P&G, reasonable spending that can get the attention of your targeted audience seems justified. Gamification achieves exactly this objective!

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