Characteristics of the gaming industry and advertising in it

 The gaming industry in the past decade

From 2016~2021, gaming industry increased rapidly at a 30%+ YoY rate. The mobile gaming market, a huge blue ocean market, was a key driver of the market growth. Advertising technology in mobile gaming has focused on the speed and efficiency acquire users. Therefore, the key purpose of advertising technology focused on improving the top-line of customer LTV, by leveraging technical methods such as direct media docking, providing automated mass advertising creation and optimization tools. These methods mainly focused on user scales and user value utilization.

External environment in past years

• Incremental market: massive new users entering the market
• Excessive media traffic: users are more willing to play games and view advertisements than pay in games
• Content quality: limited games supply of high qualities

Priority of online advertising activities in gaming industry

In this market, advertising activities focus on following functions:

• Media traffic overflow: Knowledge of the online traffic and the business operating rationale behind it, such as ranking and filtering mechanism and algorithm, the prediction model of click rate and conversion rate under eCPM model, etc.
• Data management platforms: The platform where the data is being collected, analyzed, managed and activated. Using the platform to finding the right person, talking and bidding the right price to find accurate users; use the insights of user segments, produce creative material and conduct data analysis, therefore maximize revenue through pricing and ROI estimation，
• Data efficiency tools: technical solutions that satisfy basic requirements and provide stable services, and extend rapidly to facilitate the user acquisition process
• Data attribution tools: clarify how each user from exposure to conversion process, track where the user comes from (from what media, which banner/position on the page, from what type of advertising material, how they enter the game and how they behave in the game).