Video Games & Esports: business opportunities for brands

Video games began their period of technological dominance and cultural impact, particularly revolutionizing the entertainment and advertising industry. If we approach the scenario of online games in the U18 segment in Latin America, we will find the following data:

• The average age in which they are already regular players is 6 years old.
• Video games are the second most performed activity, after watching videos.
• 2 out of 10 boys and girls in Latam have a subscription to video games.
• The average daily game is 1 hour 30 minutes.
• + 80M boys and girls play video games in Latin America.

What is the reason for this growth in recent years? Let's take into account the presence of the COVID-19 pandemic. Play dates, recreational outings, family trips were limited, and the most common form of entertainment for the youngest has been video games.

There were fewer face-to-face meetings and more encounters within virtual universes that were created with components of everyday life where conversations happen, ideas flow and fun is shared. We are talking about the “Metaverse”.

Games like Roblox have become popular today, where children re-signify the sense of community and become story generators. They develop their avatars and create or explore different arenas.

The cell phone stands out for being the first device for distribution and consumption of games. Mainly because it is a free platform, although "pay to play" is becoming increasingly more common. + 60% own smartphones and 2 to 5 apps per month are downloaded at a general level by the U18.

We identified 4 types of gamers:?

• Extreme Gamer: each gaming session lasts between 2 and 5 hours and represents 11% of the under 18s in Latam.
• Fanatic Gamer: play a few times a week. Saturday and Sunday is their best time. 1 in 3 children is considered this style of player.
• Casual Gamer: play at least 3 times a week. Enjoy video games in their spare time, as one more distraction and entertainment activity.
• Viewer: they like to play as much as watching other gamers play. They are known for watching e-sports, attending events and sporadically participating in tournaments.

Speaking of e-sports, did you know that FIFA tournaments are the most watched by children and adolescents with a 48% audience share? Below we find Fortnite with 26%, Call of Duty with 24%, League of Legends with 15% and Formula 1 with 14%.

Streamers usually broadcast live games of the most popular video games of the moment on their respective Twitch channels or the streaming platform they use. If we had to name the most popular personalities within the gaming and entertainment world, we cannot forget Ninja, Tfue, Rubius, Auronplay, TheGrefg, Ibai Llanos, among others. With millions of followers and viewers in each transmission made.

Brands have been attentive to the momentum that streamers have had in recent years and today they are the new licensing ambassadors for clothing, games, food, books and magazines. This is the case of Ninja and its collaboration with Adidas, or Puma sponsoring the Esports All Knights Gaming Team.

If you play video games, you know the uncertainty of not knowing what will happen in the next level. In this case, we will save you the trouble and we will tell you what are the 3 trends for the future of gaming and the participation of brands:

• Academic brands: they must provide or enhance tools and courses related to children's interests. Environment, animal care, design and coding are some of them. Looking for those that are linked to brand values can be a great opportunity.
• “Onlife” experience: the new immersive entertainment will be with mixed reality technology. It combines tangible objects with the virtual world to create new playful environments.
• Advertising gamification: Gaming is becoming more ad-friendly. Children and adolescents are more receptive to those advertisements with a playful sense. Gaining points for rewards, progress levels, performance rankings, etc.

The universe of video games may be unknown to those outside this great community that has been created over time. It is important to study and understand it in order to take full advantage of the infinite business opportunities that are presented for brands. From live concerts on Roblox, to sale of merchandising from Fortnite.

The big question that touches upon professional ethics and human morality: is it okay to take advantage of these channels to advertise when the average age of this target is 6 years old?