An Analysis of Marketing, Consumer, and Technology Trends in the Video Game Industry
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Hongyuan Han
College:
College of Business and Public Management
Major:
Marketing
Faculty Research Advisor(s):
Valerie Vaccaro
Abstract:
This study utilized a multifaceted research approach to distill key insights on marketing strategies, consumer behavior, and technological trends in the video game industry.
The video game industry is forecast to see significant growth as part of digital entertainment (Turner, 2024). The number of gamers worldwide is expected to increase from 1.31 billion in 2024 to 1.47 billion in 2027 (Turner, 2024; Statistica, 2024). Asia Pacific is the largest region representing 46% of global revenue (Turner, 2024). North America is the biggest subregion and is expected to generate revenue of USD 73.73 billion in 2024 and to grow to 80.9 billion by 2025 (Turner, 2024).
Gaming is an increasingly popular form of socialization and entertainment (Ricera, 2023) with a nostalgic trend to revive classic games (Marr, 2023). Global marketing campaigns emphasize community and cross-platform engagement (Insider, 2024). Video games are being used in marketing through cross-promotions, social media campaigns, influencer partnerships and community events (Insider, 2024).
In 2024, mobile gaming industry revenues are expected to rise by 10% (Bilas, 2024) driven by the widespread use of smartphones and high-quality mobile games (Porokh, 2023).
Similar to TV and music, the gaming industry subscription model is becoming popular with exclusive content (Bilas, 2024; Morris, 2023). Companies such as Netflix entering the game streaming market aim at long-term user engagement (Packwood, 2023). Cloud gaming is on the rise, offering flexibility to play games on a variety of devices without the need for downloads (Porokh, 2023).
Increasingly, eSports are becoming more popular around the world, with huge viewership and lucrative prize pools (Porokh, 2023), along with brand sponsorship and advertising opportunities (Marr, 2023).
The use of artificial Intelligence (AI) in game development supports personalized marketing strategies to enhance player engagement through dynamic and customized content which improves the user experience (Bilas, 2024; McEvoy, 2023, Marr, 2023; Morris, 2023; Packwood, 2023).
As gaming experiences become more connected, marketing strategies need to adapt to multiple platforms, including cross-platform gameplay and integration of augmented reality/virtual reality (AR/VR) technologies (Bilas, 2024). AR and VR are being explored to create immersive ads that smoothly integrate with immersive gaming experiences to increase user engagement and ad effectiveness (Insider, 2024; Ricera, 2023). VR in gaming could see a boost with the introduction of new high-end devices.
Based on the research findings, here are key marketing recommendations for companies in the video game industry. Companies should invest in AI and user-generated content to develop smarter game design and personalized experiences. Players should also be encouraged to create and share their own content. Firms can leverage event marketing and ongoing content updates to drive higher revenue and player retention. Also, companies need to develop video games that work seamlessly across devices and platforms for loyalty and expand their participation in subscription services and cloud gaming. Lastly, companies should increase investments in high growth areas such as high-quality mobile games and eSports-enabled games to capture the broad player base and potential marketing opportunities.