Teens and Advertising In Games: Rewards Are Key To Interaction by InerpretLLC


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									                                              MOBILE DEVICES
                                              AND PLATFORMS
                                              Mobile Advertising Wars: Does Brand Even Matter

                                              Lead Analyst
                                              Marissa Gluck

Interpret’s New Media Measure Interpretations are monthly syndicated research from Interpret’s category experts, providing in-depth
analyses on trends and market information in Digital Media, Mobile and Video Games. For more information, email sales@interpretllc.com or
call (310) 255-0590.

Reproduction by any method or unauthorized circulation is strictly prohibited. Interpret’s syndicated research reports are intended for the sole
use of clients. All opinions and projections are based on Interpret’s judgment at the time of publication and are subject to change.

Published April 2010. © 2010 Interpret, LLC
Teens and Advertising In Games: Rewards Are Key To Interaction
Catalyst: Teens are a lucrative but elusive market for advertisers. Marketers struggle to target and
communicate with this segment of the game playing audience.

Core Questions:

         •   How receptive to advertising are teen gamers?
         •   What types of games are the best platforms for reaching teen consumers?

Interpret Insight: According to the latest data from Interpret’s New Media Measure™, today over four
out of five teenagers play video games. While today’s teens are media- and technology-savvy, they are
also quick to condemn potential advertising intrusion. Marketers can overcome teens’ initial resistance
to the in-game advertising model by finding ways to not only seamlessly integrate into these worlds but
also to enhance them. For marketers to successfully court this demographic in a game environment it is
critical to provide them with a reward in return for advertising.

                                               Q: Do you personally play video games?
                     80%                 77%

                     50%                                                                      44%




                           Age 12-17   Age 18-24     Age 25-34         Age 35-44          Age 45-54            Age 55-65

                                                                                        Source: New Media Measure; Wave 4 2009 n=5387

Fig. 1
Teens Are Intense Video Game Players
Not surprisingly, teens comprise a strong segment of the video game marketplace. Over four in five
teenagers between 12 and 17 play video games on a platform such as Microsoft’s XBOX 360, Sony’s
Playstation 3, or a Nintendo Wii, or on a handheld device such as an iPod Touch or a Nintendo DS, or on
a PC (fig .1). According to the latest data in Interpret’s New Media Measure™, the incidence of video
game play is highest for this segment than any other age group, even if the population of this segment
of overall video game players is somewhat smaller than other age ranges. Interpret estimates that
almost 21 million consumers between the age of 12 and 17 are playing video games out of
approximately 28.9 million teens in the US. While video games are a popular pastime for teens, casual
games hold less appeal for this demographic. Only 12 percent of the casual games audience is between
the age of 12 and 17, or about 13.4 million consumers. In contrast, consumers between the ages of 25
and 44 comprise nearly half of the casual gaming audience.

                 Advertisements of real world products should not mix with                                                              138
                                       video games                                                                                       141
                                   Advertisements in games are distracting                                                          134
                     Advertisements in games stand out compared to other                                                            131
                                    types of advertisements                                                                               141
                 Advertisements in games are only acceptable if the games                                                           131
                                          are free                                                                                126

                   Advertisements in games improve your overall gameplay                                                      122
                                         experience                                                                                         148
                   You would be willing to put up with more advertising in                                                  117
                      games for a small decrease in those games’ prices                                                                         149
                 Advertisements in games make the gaming environments                                                  109
                                    feel more realistic                                                                                     146
                  Advertisements in games make the gaming environments                                                106
                                    feel more interactive                                                                                 141

                                                                             0     20    40    60       80      100     120         140          160

                                                              Age 12-17      Age 18-24   Age 25-34

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