Video games abandon banner ads in favor of in-game formats

In-house technology, patented and seamless.

Recently, Netflix announced that it was betting on video games to rebound as it confirmed the future arrival of advertising on its platform. Indications as to whether potential opportunities are as necessary should be decided immediately. And for brands that do, the next question is: how?

For Gadsmeadvertising management in-game, the answer lies in its patented format that facilitates access to advertisements without disrupting or damaging the user experience. After the first $ 8 million collection was done in April with funding from American Galaxy Interactive, gaming specialists and Web3, and game publishers, including Ubisoft, William MonteuxCEO and co-founder of Gadsme, presents his in-house technology and looks to the future of the sector.

Explain to us what a board that specializes in gaming and the metaverse does. What brands do you offer?

William Monteux : In the gaming world, there are two types of games, those called AAA or AA on the consoles and PCs we usually buy, and mobile games. In the past, and for 20-30 years, brands have been conducting special operations there [les OPS dans le jargon, NDLR] with a level, car or t-shirt in the colors of the brand in question. These operations, due to their event -driven nature, require preparation and take a long time to implement. In the field of mobile video games, on the other hand, brands are completely absent. The observation is that there are no simple encounters between brands and the JV world.

Why aren’t brands going into mobile gaming?

1. The formats in which they can be integrated can annoy players: the flag reduces play and the interstitial pop is frequent during the game and spoils the fun of the game. So brands don’t want to be associated with a format that annoys players. The challenge for brands is to offer messages that distract the audience as much as possible, which is not the case here.

2. They don’t know how to choose their game (s). A brand like Dior might want to get into JV, but not in games where people are killed, with blood and zombies for example. There is no guarantee for brands to broadcast a specific type of games equal to their prices. 95% more ads for mobile games than ads for other mobile games.

With many “classic” games on the PlayStation and other consoles, the process is much more complicated, requiring time and money. Gadsme, for “ads” in “games”, is an advertising agency that is coming up to offer a new ‘in game’ format to brands and the world of video games. It’s embedded into the 3D scenes of the games in question, into the decoration, which is a bit like JCDecaux putting his advertising media in a city.

What technology is your offer based on, what does it allow?

GM : This is a technology we invented and patented. We are “techos” at the base. We’ve developed technologies to enable, in large numbers and in a large proportion of games, to display ads in real time. It is known that there is a technical difficulty-which everyone laughs at: each panel calls the platform Gadsme which itself will call all the requested programs, PMP (private market), direct campaign, sales , for filling and all in less than 90 milliseconds. The answer should be almost immediate. It’s less annoying that a website will drag less to download ads than a game if you’re in the middle of a game. Players will flee.

Gadsme has a double offer: technical, with knowledge of French and engineering, and management services. We have become a focal point of concentration for brands that want to showcase video games and the metaverse. We’ve streamlined the advertising of video games by simplifying access for brands, a combination for the game publisher, without compromising the player experience. Advertising is thus integrated and accepted as much as possible by the players.

Have you observed a shift in demand from brands to enter these universes in recent years?

GM : Total. If the company was launched in 2019, we went to the brands to ask them if our offer might be of interest to them: obviously, they responded positively, otherwise we wouldn’t have launched. However, since December 2021, there has been a click away from brands after the first matches made with various video games. They realized that Gadsme’s promise was true.

We have contacts with Piaget, Shopmium, Perrier, Lion, Kellog’s, BNP Paribas, Philips for the coffee maker at L’Or Barista, and even with Bonzini, the French table football manufacturer. The universe of these brands is very different. We see interest from all brands of video games.

Gadsme finds them the terrain that best suits their target, the games are very similar, I’m not telling you anything. Through the game, we were able to “personify” the player, who was reasonably interested in the brands.

What is its added value to the market, for players and for brands?

GM : For games free play for example, the player pays for his game indirectly through advertising. With Gadsme, we offer an advertising format that is as unobtrusive as possible, easily blended by the publisher and effective for the brand. It satisfies all stakeholders. This is something new, complicated to achieve and that was impossible before: programmatic advertising is not yet ready for it, the format and the fact that the first option supports our approach. Like the IAB formats defined help with that. The world of advertising and video games are ready to pair up to guarantee brands a certain brand safety.

To cope with the loss of its subscribers and preserve its margins, Netflix is ​​finally inclined to introduce advertising on its platform and seems to particularly want to bet on its new feature, video games, by allowing its users “play” with their favorite original series/movie. We think the advertising opportunities it opens up for advertising agencies and networks like yours …

GM : Netflix has actually made two independent but ultimately interrelated announcements: video games have become a development axis for Netflix and advertising will be introduced into their economic model. Is it right for Netflix to go for video games? Yes, for many reasons, the key is to bring the brand closest to the customers, and therefore occupy the most time in the lives of its users.

If you like Stranger Things and that while waiting for the 4th season you have a game inspired by the series, you will remain in the Netflix universe. Not in the same medium of course, but there is very little chance that you will unsubscribe from Netflix at this point in time. Whether you’re playing or watching the series, it’s important to Netflix that you stay as a subscriber. This is a smart and can be effective way for the platform to keep people attached to a license. And we saw it in the series Squid game hope Kuwarta Heist. Today, Netflix offers about fifteen games, but eventually they will probably offer 30, 50, even 100. The group will be a real video game publisher around their license (or IPs with intellectual property). Definitely a hit.

Will they put advertising on it or not? In the game it can be, especially in our format, we also present Gadsme on Netflix for this purpose. For the platform on the other hand, I do not know, if he should do it is in the model of Spotify for non -subscribers: it is complicated to charge 15 or 16 euros per month to a user and present him with advertising every now and then and unya.

How about your presence in metaverses?

GM : Obviously we were very present there. From a technical point of view, it is no more or less than a video game, our technologies are adapted to all virtual universes.

Today, large platforms like The Sandbox don’t offer this type of tool, but our technologies will undoubtedly be used to advertise in metaverse and promote things like NFTs.

How do you see the growth of the sector in the coming years?

GM : The gaming world has completely abandoned the banners. All of these methods of monetizing, i.e., the web techniques that are quickly and badly transferred to the world of video games, will disappear. Gadsme formats, where leaders and brands are brought in to imagine and invent, are at the forefront of JV. For the benefit of the player. The idea is that the player can play for free if it is the editor’s choice to offer free play, but to annoy him as much as possible with advertising.

By 2029, the video game advertising market will represent more than 150 billion dollars worldwide according to analysts. This year, digital advertising will exceed 330 billion, with 4.7 billion internet users and 3 billion players. With the right advertising format and serious management, this prediction is not far off, the potential is enormous.

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