Brands Are Hooked on Gamification

YouTube becomes the latest brand to harness the marketing power of games with the launch of free-to-play arcade game ‘Playables’. At launch, the Playables arcade featured more than 75 games, including Angry Birds Showdown and Cut the Rope, which users can play for free on mobile or PC.

YouTube, like other brands like Netflix, clearly sees a lot of potential in games to help them achieve their retention, acquisition and revenue goals. So why is the gamified experience so appealing to brands? And how can game studios attract brands running gamified campaigns?

There are several factors at play here, not the least of which is the fact that people are predisposed to enjoy playing games. In his book Outliers, Malcolm Gladwell revealed that by the time they reach the age of 21, the average person will have spent up to 9,000 hours playing video games and only 2,000 hours 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 on Facebook (20 minutes) or TikTok (17 minutes). Why? Because games are fun after all. When we play, and especially when we win or complete a level, the brain releases dopamine, a neurotransmitter associated with pleasure and satisfaction.

Regular engagement builds loyalty

For these reasons, companies that deploy games in their marketing activities find that they are extremely sticky and encourage more regular engagement with the brand, a critical factor in increasing customer lifetime value (LTV). By incorporating game elements into non-game contexts, businesses can create environments where users are active participants rather than passive consumers.

This relationship between engagement and monetization is crucial for businesses looking to maximize their revenue. An example of this is in KFC “Shrimp Attack”which compared to the previous year brought a 22% redemption rate and a significant increase in revenue. Retained users are more likely to engage in monetization strategies such as in-app purchases, subscriptions, and ads. Frequent interaction with a brand increases customer loyalty and makes users more likely to spend more over time.

When the convenience store chain, CostCutter, launched a “Bringing Summer Home” campaign in 2020 that included instant-win games and raffles with prizes like barbecues and spas, it generated 340,000 email signups (against a goal of 100,000) and has seen over 8,000 hours. engagement times, 3,000 shop locator clicks and over 2,000 blog and recipe clicks.

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In fact, gamification can work for almost any company in any industry, and the type of game a brand offers can be designed to match the interests of their customers. Just as the game ‘Monopoly’ ticks all the right boxes for McDonald’s, the slightly more erudite ‘Wordle’ bangs the buck for the New York Times audience in exactly the same way.

Seizing the opportunity of gamification

So how can game studios take advantage of the gamification trend? Targeting brands in verticals that have already shown enthusiasm is a good place to start. It’s easy to argue that gamification can work for any brand in any industry, but some seem smarter than others. Quick Service Restaurants (QSRs) and retail, as mentioned above, are finding that gamification is a great way to engage their customers.

Fashion is another vertical prone to gamification. In the spring of 2020, as the world went into lockdown, fashion brands Mark Jacobs and Valentino, unable to hold real fashion shows, used Nintendo’s social simulation game “Animal Crossing” to showcase their latest collections. In-game pop-up shops allowed players to purchase virtual versions of their designs. Meanwhile, Tommy Hilfiger, shoemaker Clarks, L’Oreal Group, Lacoste and Stephanie Gottlieb are just some of the fashion and jewelry brands that have launched gamified stores and experiences in the metaverse.

Huge potential

As companies continue to explore innovative ways to incorporate gamification into their strategies, the potential for brands to increase user engagement and build loyalty with their customers remains huge. For game studios, the potential to attract big-budget branded, gamified campaigns is equally exciting and potentially lucrative.

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