After the numbers surged to 2.9 billion users last year, the gaming industry has become the most profitable form of entertainment. The gaming industry has surpassed other forms of entertainment, including movies, music streaming platforms, etc.
In parts of Europe and especially the United Kingdom, the industry has doubled its consumer base in value since the start of the pandemic. This indicates top gaming trends and how the industry has built a loyal fanbase.
Several factors have made the gaming industry so successful. Technology has heavily influenced the production of video games. Besides, free winning content and in-app monetization have made it more appealing for gamers to stay engaged long-term.
Gaming has become a lucrative investment opportunity, and businesses that have effectively utilized customer data have emerged as the big shots of the gaming industry. On that account, let’s look at how data-driven marketing influences the gaming industry.
Data-Driven Strategies Used In The Gaming Industry
Big data has been the growth multiplayer for the iGaming industry. As the number of users increases substantially in every country, developers access the customer’s data. The consumption and evaluation of consumer data can help gaming companies figure out player trends and determine what makes their game attractive.
- Using Customer Data
Customer data is a valuable source that can be used to create productive business growth. If you’re an aspiring gaming company, you can employ game analytic strategies to make informed decisions using the data you gain from customer behavior.
The gaming community is evolving rapidly, and companies can only stay ahead of their competitors by using their data. If you want to overcome production barriers or attract new customers, the one-stop solution would be generating insights from the data collected. This can drive decisions necessary to modify the game design, improve business monetization, or introduce new features.
- Availability of Structured Data
The key to success in the iGaming industry is the availability of structured data. The availability of structured data can open new avenues for gaming companies as behavioral and time-series analysis can enable them to decipher strategies for player engagement, acquisition, and retention.
This becomes especially significant for online casinos and betting platforms- legal sites for online betting use the results acquired by big data to create their strategies. For these casino platforms, 5 percent of their players are VIP, but they can solely be responsible for generating about 70 percent of the revenue. Thus, using big data to identify potential VIP customers becomes relevant during customer acquisition.
As the online gambling industry is projected to be estimated at USD 158 billion by 2028, structured data can help companies channel their growth and increase profits. It aids in-game advertising for data-driven marketing strategies.
- Gaming Analytics as leverage
Predictive analysis or big data can also be helpful to gaming companies as leverage for understanding when customers will make actions like in-app purchases or simply return to a game repeatedly. There are many ways game analytics or predictive analytics can be used as leverage. Here are some instances:
- Game developers can create quantitative modeling to predict future customer behavior.
- Gaming companies will be able to determine goals and establish outcomes based on metrics. This facilitates the achievement of company goals and values.
- The predictive analysis makes it easy for gaming companies to focus on training to ensure that every game feature and model performs effectively and without bugs. The generated data can then be used to make improvements within the game or fix bugs. In other words, this is a quality assurance feature that builds the company’s reputation and credibility.
- Big data generated by gaming companies tend to have a long-term infrastructure. This makes it possible to absorb information that can be further used for several business purposes.
- Live Streaming
The pandemic made gaming a social pursuit. With worldwide lockdown orders and quarantine measures, people tried to stay connected to their friends and family through multiplayer online games.
As gaming has become increasingly entertainment-heavy, live streaming has taken it to the next level. In fact, celebrity live streamers can earn as much as CEOs of Fortune 500 companies. Live streaming isn’t an exclusive phenomenon. Data is created by analyzing the players’ actions; thus, it makes sense to track patterns that will enhance the gaming experience.
Live streaming can be viewed as an exciting window into what players typically enjoy about games and which features appeal to the general audience. Logging live streaming content can be an effective data-driven strategy.
- Strategic Marketing in Gaming
Once company goals are identified, and data is analyzed, responsibility is passed to the marketing department. The marketing department has to develop solutions that will enable the company to capitalize on potential monetization possibilities. This is known as strategic marketing in gaming.
As it is clear, these data-driven marketing strategies are used to improve monetization opportunities, including in-game advertising. Big data provides valuable insight into customer behavior. Therefore, in-game ads can be personalized according to the users’ individual preferences. Further, it can be found out what provokes a user to make a purchase or sign up for larger subscriptions.
Also, data-driven insights help in customer retention. If a customer has a problem with the UI or some other feature, they will leave that platform and head somewhere else. By understanding the drawbacks, the company can introduce newer features and updates that will lead to conversions, retention, and constant traffic to their site.
These were some of the data-driven marketing strategies that gaming companies should employ to acquire and retain customers and focus on revenue generation. It should be noted that the end goal of data-driven marketing is to retain its loyal customers.
Studies show at least a 5 percent increase in customer retention because of data-driven marketing tactics, which can result in profits increasing between 25 percent and 95 percent. Therefore, it is incredibly important to pay attention to customers’ wants and retention tactics.
Entertainment industries believe loyal customers are the best and most effective marketing agents. In conclusion, if you want your business to succeed and stand out amidst competition, use centralised big data on customer retention strategies.