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“To me, there’s no tighter relationship between gaming and sports,” says Craig Elimeliah, Chief Creative Officer of Code and Theory. While sports took center stage at the Cannes Lions International Festival for Creativity, and Stagwell’s SPORT BEACH, it’s clear from dozens of our interviews with senior marketers that gaming is also on the world leaderboard and becoming an essential platform for reaching digital-first consumers.

Everyone’s a Player

While the concept of a “gamer” conjures up the archetypical image of an teenage boy, 50% of people who identify as gamers today are women, Activision Blizzard’s Claire Nance reminded marketers on stage at SPORT BEACH. To counteract this pervasive stereotype, Nance suggests redefining “gamer” as “player,” a more comprehensive term she says better reflects the heterogenous gaming demographic. As gaming technology advances and becomes more accessible, the barriers to entry, such as the need to purchase an expensive console, no longer exist, enabling more people to pick up gaming and become “players,” further diversifying the gaming audience.

The Rise of the Gaming Generation

As younger generations age, gaming has evolved from a niche hobby to an essential part of the modern entertainment mix and a nascent platform for advertisers. Yet, “we’re still not seeing brands and agencies lean in [to gaming] with as much focus as we would expect,” notes Brad Simms, CEO and President of GALE, whose agency has helped companies like MilkPEP and Bomb Pop reach untapped consumers through gaming. There are 3.4 billion unique gamers globally.

Why has gaming become so pervasive? Nance says a generational shift is underway. “When you look at geriatric millennials, this is the first generation that really grew up with gaming as a kid and has taken it through into life and into adulthood. As geriatric Millennials and GenX are starting to have children, they’re introducing gaming to their kids.”

Leveling Up to Immersive Experiences

“As a device guy I’ll tell you that experiential gaming is the future,” says Ajit Sivadasan, Global Head of Online Sales, Digital Marketing & Platform at Lenovo. Not too long ago we witnessed a massive shift in gaming from the 2D world to the 3D world. Now, immersive experiences are all the rage, bridging the physical world with the digital world in ways previously unimaginable. Gaming is the optimal platform to integrate AR, VR, and XR technologies, creating an interactive and hyper-realistic universe for gamers to engage with and explore. The technology is advancing rapidly. Itamar Benedy, CEO and Co-Founder of Anzu, believes that “in 5 years from now, people will move most of their internet-based interactions to a 3D World.” Thus, now is the time for brands and marketers to not only embrace gaming, but to become early adopters of these immersive technologies, shaping the future of this evolving industry and capturing the attention of consumers globally.  

Creative Excellence Across In-Game Advertising Scores High

“Gaming is a place where ads should not be disruptive…they should actually be additive to the experience part of the game,” Elimeliah notes. Companies like Stagwell and Anzu are transforming the in-game advertising experience for players, ensuring that ads are immersive and creative.

Anzu, in partnership with Stagwell, recently shared insights into creative best practices for intrinsic in-game advertising, where following these practices can significantly enhance brand lift performance and drive brand awareness. “This research shows that non-intrusive and authentic ads can captivate attention and enrich the gaming experience, but only if approached in the right way and with an appreciation for how the gaming audience prefers to interact with brands,” says David Sable, Vice Chair of Stagwell.

Creative excellence is essential to the marketing around gaming as well. For the launch of Blizzard Entertainment’s Diablo IV, 72andSunny created “Cathedral of Diablo,” a dramatic and cinematic campaign featuring a 160-foot-long mural of Diablo scenes painted across the interior of a French Gothic cathedral. “It’s a different world now than when it was when I first started doing video game advertising. There was a time when you would put out a 15-second trailer for a niche market,” says Tim Wolfe, Group Creative Director of 72andSunny. “Slowly and steadily, as gaming itself became more mainstream, its communications became more mainstream, advanced and crafted.”

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1. ALL ROADS WILL LEAD BACK TO SOCIAL: At Cannes, two key discussions will shape future investments in the social media space, where ad spend is set to surge in 2024, led by TikTok (anticipated to grow 38%) and Instagram. First is the future of social video. As the popularity of bite-sized videos diminishes and Gen Z gravitates towards longer-form content (although this mainly just means 90-second videos), expect significant discussions about new monetization and creative opportunities in social video. We’ll also be keeping an eye on how marketers view the viability of “challenger” platforms like TikTok, which have built incredible momentum in recent years but face a shifting regulatory and consumer landscape in the U.S. and abroad. Learn more about what social-savvy brands can do to prepare for the future in this blog from Movers+Shakers CEO Evan Horowitz.  
2. BRANDS WILL GET SCHOOLED ON THE RIGHT ATHLETE SPONSORSHIP PLAYS: Today’s athletes are multi-hyphenate leaders and aspirational figures who excel in business, media, nonprofits, and more, far beyond their achievements on the field. As the Cannes spotlight turns to sports, be sure to attend SPORT BEACH panels such as “It’s a Win-Win: Why Sponsorships Make Sense” with Channel Factory and Relo Metrics, and mainstage events such as “The Rapid Evolution of Athletes as Brand Builders” with the NFL. These sessions will guide brands on shifting from a brand ambassador approach to a true partnership mindset when collaborating with athletes. By involving athletes in product development, marketing strategies, experiential initiatives, and impact-driven projects, brands can benefit from their unique perspectives and vast audiences. Brush up on this shifting dynamic by streaming our SXSW 2024 talk, “Athlete as a Brand: Creating Authentic Connections.” 
3. MARKETERS WILL TRULY PLUG INTO GAMING: Marketers are no longer overlooking gaming and e-sports, which boast 3.3 billion gamers globally and will reach $4.3 billion in global ad revenue this year. With immersive consumer experiences now a priority for brands, gaming is the perfect market. Keep an eye out at Cannes for insights emerging from campaigns that win big at the Entertainment Lions for Gaming and Brand Experience & Activation categories. Their success will demystify the nascent big-C creative and performance media opportunities. You also won’t want to miss Stagwell’s GALE in conversation with Lenovo, Activision Blizzard, and the National Women’s Soccer League at SPORT BEACH on Tuesday on the future of consoles and community. One other thing to track: 2023 was a big year for the convergence of gaming, marketing, and branded entertainment, as massive titles like the Super Mario Bros. movie and “The Last of Us” translated into branding opportunities galore. Brush up on the insights with National Research Group’s whitepaper, “Why Video Games are the New Frontier for Hollywood.” 

Follow the Buzz from SPORT BEACH

Join us on LinkedIn, Twitter, Instagram, and YouTube as the Stagwell network hits the ground at Cannes Lions and brings to life SPORT BEACH, our flagship activation home to 50+ of the most renowned athletes, brands and cultural icons coming together around the power of sport and its massive global impact on business and culture. 

Learn more and register at https://www.sportbeach.com/.