Because they are enlarging, online social communities are very attractive for advertising expenditure. In 2007, 920 billion dollar was spend on ad expenditure for use in social networks in the United States. In 2008 this number rose to 1,6 billion dollars. Worldwide the ad expenditure on social networks grew to 2,1 billion dollar between 2007 and 2008.
The problem with mass social networks like Facebook is that they are limited in their ability to target customers with relevant ads from a brand advertiser. Most of the time advertisers only know the age and the interest, which they found out based on the groups in which the consumer is enrolled. (Medford, 2007)LinkedIn might be better than Facebook and other mass social networks for advertisers. The consumer is motivated to update his profile because it concerns his professional life.
The members are older and wealthier than Facebook and MySpace users. This offers opportunities for B-to-B and premium good advertisers because they know the customer’s profession, the industry he works in, level of education and geography.
A Small World, http://www.asmallworld.net/, is another example of a social network. The website has 100 percent revenue of luxury brand ads like for example Louis Vuitton, Dior and Mercedes Benz. The website works with a focus group of consumers. These people are asked what brand they remember from the website on a regular basis. Apparently they have 85 percent brand recognition on the website. This is because the ads on the website are relevant to the audience. This is what’s so important for marketers. There’s also a high level of engagement which mass social networks can’t achieve. (Baker, 2008)
Marketers have several opportunities to target their target group. A simple way to reach consumers is by using banners. These are classic methods but seem to have lost their efficiency. A lot of companies have made a group of their own now on websites like Facebook. Other users can join this group. But what every marketer wants to achieve is that consumers build groups about the brand on their own, which happened with Starbucks.
A Small World, http://www.asmallworld.net/, is another example of a social network. The website has 100 percent revenue of luxury brand ads like for example Louis Vuitton, Dior and Mercedes Benz. The website works with a focus group of consumers. These people are asked what brand they remember from the website on a regular basis. Apparently they have 85 percent brand recognition on the website. This is because the ads on the website are relevant to the audience. This is what’s so important for marketers. There’s also a high level of engagement which mass social networks can’t achieve. (Baker, 2008)
Marketers have several opportunities to target their target group. A simple way to reach consumers is by using banners. These are classic methods but seem to have lost their efficiency. A lot of companies have made a group of their own now on websites like Facebook. Other users can join this group. But what every marketer wants to achieve is that consumers build groups about the brand on their own, which happened with Starbucks.
Online gaming communities
Advertising in games or advergaming was first introduced by SEGA somewhat 20 years ago. According to Massive, a Microsoft subsidiary specialised in placing ads into video games, advertising within video games will approach a 1.4£ billion business by the end of the decade.
This would be a rough 3% of all media spent.
This growth is driven by the online application of in-game advertising. An increasing percentage of the 15-35 year olds are playing games in an online community. Already 75% of people who have internet access spend more than an hour per month playing online games (Park Associates, 2006).
Especially massively-multiplayer online roleplaying games (MMORPG) are booming business. MMORPG reach thousands of people and generate cash by the monthly membership contribution fees, virtual goods and advertising. The revenues of US online gaming such as MMORPG’s services will be touching $3.5 billion in 2009. (Park Associates, 2005)
By registering and agreeing to the terms of use, the company behind the game receives a lot of useful information. Gender, age, location, leisure activities, who your friends are, what times your playing … .These databases make it very easy for marketers to reach different segments and target specific groups. A high ROI is guaranteed, measuring internet traffic nowadays is also no problem.
The question remains how we reach these gamers effectively? Most members of these online game communities know the internet as if it was their own backyard and will not click easily on a lame banner ad. Gamers are also likely to be more engaged with their primary task (playing the game) and therefore have less attention capacity for the surrounding secondary information compared with their level of attention when they are engaging in usual online activity (Adam Acar, 2009).
E-xpErtz believe a mix of advertising tools could do the trick. Direct mailing to clearly limited target groups, product placement in the games, sponsoring certain features of the game, virtual billboards, account extra point or lives to people who include your brand name on the clothing of their virtual alter ego,…
This would be a rough 3% of all media spent.
This growth is driven by the online application of in-game advertising. An increasing percentage of the 15-35 year olds are playing games in an online community. Already 75% of people who have internet access spend more than an hour per month playing online games (Park Associates, 2006).
Especially massively-multiplayer online roleplaying games (MMORPG) are booming business. MMORPG reach thousands of people and generate cash by the monthly membership contribution fees, virtual goods and advertising. The revenues of US online gaming such as MMORPG’s services will be touching $3.5 billion in 2009. (Park Associates, 2005)
By registering and agreeing to the terms of use, the company behind the game receives a lot of useful information. Gender, age, location, leisure activities, who your friends are, what times your playing … .These databases make it very easy for marketers to reach different segments and target specific groups. A high ROI is guaranteed, measuring internet traffic nowadays is also no problem.
The question remains how we reach these gamers effectively? Most members of these online game communities know the internet as if it was their own backyard and will not click easily on a lame banner ad. Gamers are also likely to be more engaged with their primary task (playing the game) and therefore have less attention capacity for the surrounding secondary information compared with their level of attention when they are engaging in usual online activity (Adam Acar, 2009).
E-xpErtz believe a mix of advertising tools could do the trick. Direct mailing to clearly limited target groups, product placement in the games, sponsoring certain features of the game, virtual billboards, account extra point or lives to people who include your brand name on the clothing of their virtual alter ego,…Online communities whether they are browser based or originate from online games are not only the next best thing; they will probably dominate the near future on the internet. People are spending more and more hours within these communities. You don't want to limp behind with your brand...
References:
Baker, Claudine (2008) 'Close Friends .' New Media Age Supplement, 12-13
Medford, Cassimir (2008) 'MySpace Opens Ad Window to marketers.' Red Herring Unknown , 4-4
Medford, Cassimir (2008) 'MySpace Opens Ad Window to marketers.' Red Herring Unknown , 4-4
Adam Acar (2007) 'Testing the Effects of Incidental Advertising Exposure in Online Gaming Environments.' Journal of interactive advertising 8,
Park Associates (n. d.) Networked Gaming: Driving the Future [online] available from <http://www.parksassociates.com/research/reports/tocs/2005/networked_gaming.htm> [December 2005]
Hawkyard, M. ; Brown, O (2008) 'WILL ADVERGAMING BE THE NEXT BIG THING?.' Brand Strategy 227, 60-63
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2 comments:
E-xpErtz how do you think we should advertise in World of Warcraft?
For MMORPG's like WoW it's recommended to advertise via:
- Product placement: ads can be integrated in the decor of the game, clothing of the characters,..
- Event marketing: Upcoming arena tournaments can be linked to one sponsor e.g. The Toyota 2009 Arena tournament
- Community marketing: Start a tribe within WoW and give members special features. Make a seperate ranking for members that have included your brand logo. Award a price for the ranking leader. Companies can also design and sponsor their own quests in Wow.
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