While marketing films to women and minorities should start with representation at the studio level, the annual diversity survey by the USC Annenberg School For Communication and Journalism suggests that more diverse hiring is still overdue. In 2017, there was no meaningful or sustained change for female, black or Asian directors in Hollywood.
A total of 109 film directors were associated with the 100 top movies of 2017, but only eight of these directors were women. Domestically, the top three grossing movies of 2017 (Star Wars: The Last Jedi, Beauty and the BeastandWonder Woman) included female leads and one female director (Patty Jenkins)—no coincidence, according to USC Annenberg.
“Consumers have voted with their dollars in extraordinary ways this year,” the report states, “propelling films like Wonder Woman and Beauty and the Beast to the top of the box office charts.”
In recent years, theater audiences have become more diverse. Women made up 52 percent of all moviegoers in 2016, according to the Motion Picture Association of America, and Asians/Other Ethnicities reported the highest annual attendance per capita—going to the movies an average of 6.1 times in the year. Despite the increased diversity in audiences, a majority of 2017 films were directed by white men.
Across the 100 top movies of 2017, only six (5.5 percent) of directors were black, USC Annenberg found. Of these, five were male and one was a female director. The percentage has not changed across the 11‐year sample. USC Annenberg observed that 81 percent of 2017 films with a black director also had a black actor attached as one of the two top‐billed talents.
“This finding suggests that the vast majority of directing opportunities for black directors are linked to the race of the story’s leading characters,” said the report.
In 2017, five (4.6 percent) of the 109 directors were Asian, all of whom were men. Across the survey’s 11‐year sample, only 3.2 percent of all directors were Asian.
Across all nationalities, females are the least-represented group to sit in the director’s chair, and women are twice as likely to direct only one film compared to their male counterparts. This revelation does nothing to help Hollywood’s reputation amid accusations of sexual abuse, harassment and hiring bias.
“The evidence reveals that despite increased attention, there has been no change for women behind the camera,” the report’s author, Stacy L. Smith said in a statement. “Mere conversation is not the answer to these problems—and the time for conversation is up. Until major media companies take concrete steps to address the biases that impede hiring, nothing will change.”
Change, it seems, may become the latest trend in Hollywood this year as studios distance themselves from sexual predators and reevaluate diversity as it relates to box office success. USC Annenberg warns that diversity behind the camera is vital to the industry’s continued success.
“[Consumers] have turned away from film and to other platforms and different content to fulfill entertainment needs,” the report states, “issuing a strong warning to the film industry that business as usual is simply unacceptable.”
Mobile has been the fastest growing area of gaming for the past few years, and it doesn’t look like 2018 will be an exception. But with the mobile market becoming increasingly saturated, developers and publishers will need to innovate in order to stand out, and that could mean taking advantage of the latest technological offerings.
Last fall, Apple and Google individually announced support for augmented reality (AR), and at the same time, extremely high-end mobile devices such as the iPhone X and Razer Phone were introduced to the market. Combined, these technologies open the potential for more powerful gaming experiences in the coming year.
Although it’s impossible to tell for certain what the main driver for mobile growth will be in 2018, SuperData senior data analyst Alec Nezin told AListDaily that the main driver for game growth will come from porting popular PC games to mobile devices. He explains that the trend is already in full effect in Asia with the success of games such as Honor of Kings (aka Arena of Valor), a League of Legends clone. Furthermore, the Asian market has popular massively multiplayer online (MMO) games such as Fantasy Westward Journey, Lineage and others. Additionally, there are first-person shooters like Crossfire and battle royale games such as Rules of Survival inspired by Playerunknown’s Battlegrounds.
Meanwhile, Newzoo’s head of mobile Jelle Kooistra believes the industry will mainly benefit from an increase in smartphone users, particularly in emerging markets including the Middle East, Latin America, South East Asia and China. He predicts that the market will see 300 million additional smartphone users in the coming year, reaching a total base of 2.9 billion.
As consumers in the West grow more accustomed to paying for services and games, which Kooistra says is still considered taboo in many countries, the overall effect will be greater demand for quality mobile games. This will lead developers to innovate with new genres, interesting gameplay experiences and crossovers with franchises from pop culture.
Lawrence Koh, general manager at Nexon M, agrees that innovation will be key, stating, “If I think about what has been driving step function growth of the mobile game space over the last few years, my belief is that it’s the new, unique and innovative games that are able to create a new category of gameplay.”
Koh cited Clash Royale—which became one of the highest grossing games of 2017—as an example, as well as Pokémon GO, which helped ignite excitement for augmented reality and geolocation tracking games.
Although fans might be excited for upcoming augmented reality games such as Harry Potter: Wizards Unite, made by Pokémon GO developer Niantic, opinions are divided on whether AR will be a major trend in 2018.
“[AR] has yet to truly take off on mobile in a meaningful way,” said Nezin. “The AR market is most definitely expanding, but not yet at a pace that it will drive mobile market revenue significantly. Top games in this category still pale in comparison to other categories, and they have yet to fully monetize.”
But having a Harry Potter-themed mobile AR game releasing in 2018 along with Apple’s entry into the space with the iPhone X and ARKit development tools has the others more optimistic about the near future of the technology.
“I believe we will start seeing not only an increasing number of AR gaming apps but AR gaming apps becoming commercially successful,” said Koh.
Bernard Kim, Zynga’s president of publishing, explained that Zynga is already taking advantage of AR with its game CSR Racing 2, which brings virtual cars to real world environments.
“We’re excited by how AR has captured the imagination of gamers around the world,” said Kim. “It’s still early days for AR, but we believe long-term AR and other next-gen platforms like chat have the potential to reshape the accessibility and social nature of mobile gaming.”
Kooistra added that he hopes to see the first mobile AR success stories in 2018, but is even more curious to see how the technology will impact platforms outside of gaming.
“Snapchat’s filters are only a small preview of what is possible with today’s technologies, and I can’t wait to see what developers will bring to the table next,” Kooistra said.
Augmented reality was backed by the introduction of some extremely high-end mobile devices, particularly the iPhone X and Razer Phone, to drive more powerful gaming experiences. But whether or not these premium phones will make a lasting impact on the mobile market remains to be seen.
Both Kim and Koh see the introduction of the iPhone X as a major event that may have lasting impacts on the mobile industry.
“Any type of hardware that brings with it new excitement about apps will have an impact on the mobile gaming market,” Kim explained. “Anything that increases device time is generally good for the mobile gaming business. With new devices like the iPhone X, people are spending more time on their phones, and the technology on these devices helps to underscore the quality of some mobile games on the market.”
Koh said that high-end specifications will help developers make mobile games look and play better, narrowing the gap between mobile titles and console/PC games, which speaks to Nezin’s earlier point.
Kooistra is less convinced. He said high-end mobile devices—such as the iPhone X, Samsung Galaxy Note and Razer Phone—are powerful gaming platforms, but they appeal to relatively small audience.
“Users with these devices will be more inclined to try out the latest and greatest apps, but in the end, they will only reach a small subset of consumers—most of which will be upgrading from a different high-end device,” he said. “Because most mobile games want to reach as many potential players as possible, developers tend to find a sweet spot for good graphics and compatibility with devices that are at least two-to-three years old.”
Nezin agreed, saying free-to-play mobile games will always depend on having huge user numbers.
“Game makers will invest in making games look as good as possible on the latest hardware (e.g., Vainglory supports high frame rates on devices like the Razer Phone),” Nezin said. “However, we’re not about to see many games focus on high-end devices at the expense of the vast majority of mobile gamers.”
Right now, there seems to be a subscription box for every interest from hygiene to Japanese snacks. Subscription retail has gained popularity over the past several years, but is it an effective marketing tool?
Case studies point to “yes,” depending on the intended result.
For the uninitiated, subscription boxes offer specially-curated collections of products that correspond to a specific theme or category. Brands like Dollar Shave Club and Birchbox helped pave the way for marketers to reach consumers through risk-free samples.
“The subscription and retail businesses are very important to who we are today,” Bark & Co. founder Matt Meeker told the New York Business Journal. Meeker’s New York company is the startup behind dog-themed subscription service BarkBox.
Anime website and community Crunchyroll recently partnered with LootCrate to provide discounts on streaming video subscriptions and exclusive merchandise.
“We’ve purposefully ventured into new areas where we know our audience is engaged,” Eric Taylor, senior manager of marketing for Crunchyroll told AListDaily. “Loot Crate was a logical partner given its demographic and the content of its products, particularly its anime subscription box. As we continue to grow and seek out new audiences, companies like Loot Crate make strategic sense to engage with and discuss how we can work together to super serve each of our audiences.”
Crunchyroll would not divulge any new subscription metrics related to the partnership, but Taylor said it observed positive feedback from both the Crunchyroll and LootCrate communities as a result of the activation. The anime site has also partnered with JapanCrate for a free giveaway. In this case, Crunchyroll was looking for new ways to engage with their community and the subscription box delivered.
As retail goes digital, department stores are feeling the pinch. JC Penney has partnered with subscription service Bombfell to custom-pick clothing with the help of a stylist. The first subscription boxes will cater to Penney’s big and tall customers, a demographic the company says is quickly growing across the US.
“We think this demonstrates we are meeting the evolution of the next phase of retail,” a JC Penney spokeswoman told CNBC. “We’re definitely becoming more digital . . . [and] we are leveraging the strength of our stores.”
While the activation is still in the beginning stages, JC Penney may find its subscription model effective if it taps into an underserved demographic and moves merchandise that might otherwise collect dust in a dying mall.
Analyst firm NPD Group identifies fashion is a particularly lucrative space for subscription retail. In a recent survey, consumers told NPD about their interactions with and awareness of subscription box services. While only 15 percent of consumers had ordered subscription boxes, another 14 percent hadn’t yet ordered them but planned to, and 35 percent didn’t even know what these services are.
NPD also explored whether this business model would raise awareness within target demographics compared to the retail industry as a whole. The company found that beauty subscription service Birchbox increased its penetration among 18- to 24-year-olds from 2.3 percent in Q4 2014 to 4.1 percent in Q4 2015. This share point increase was stronger than that of Amazon, Nordstrom, Macy’s, and Ulta.
“We have entered a new world of retail where the traditional leaders are faced with unconventional channel competition, and subscription services are the newest player,” said Marshal Cohen, chief industry analyst with The NPD Group.“Consumers are more critical about the purchases they make today and no longer purchase just for the sake of purchasing. The personalized approach of subscription services complements the shift toward more prioritized spending.”
The new year has just started, but video game console trends that began in 2017 are already continuing to play out in 2018.
As we dive into 2018, developers and publishers will need to pay close attention to game monetization systems, particularly loot boxes, which came under high scrutiny last fall. Game companies such as EA gained revenues through add-on content that exceeded the initial sales of the games themselves. So even though players might lash back against practices they deem unfair, it’s likely that figuring out the formula for ongoing monetization will be a trend that will continue for the foreseeable future.
In the meantime, the industry has been seeing the increased presence of social media platforms, particularly Facebook, become more involved with video games. This could pave the way for other platforms such as Snapchat to join in.
Don’t Count Loot Boxes Out
According to Newzoo market consultant Tom Wijman, it will be vital for marketers to engage with the community. This is especially the case as more publishers and developers use the “games as a service” approach, prolonging a game’s lifespan and revenues almost indefinitely through additional content.
Although there were some stumbling blocks last year, most notably with the controversy around using “loot boxes” in games such as Star Wars: Battlefront II—which forced the game to (temporarily) remove its in-game microtransactions—Wijman believes that these kinds of problems may be avoided with better communication with the community.
SuperData Research senior analyst Elena Fedina agrees, naming loot boxes the biggest trend to keep an eye on in 2018.
“With all the controversy happening and with more governments and regulation agencies starting to look into it, developers need to be extra careful with how they approach monetization in their games,” said Fedina.
Wijman adds that as the rift between gamers and publishers widens, there could be major opportunities for independent and smaller game developers to quickly rise to success in 2018. This trend began in 2017, with Playerunknown’s Battlegrounds being a prime example of an independent studio finding near overnight success. Wijman also noted the success of Cuphead, Divinity 2: Original Sin and Hollow Knight. Meanwhile, Horizon: Zero Dawn, a new IP developed by the relatively small studio Guerrilla Games, was the PlayStation’s best performing exclusive last year.
Wijman also stated that hardware brands may also become an essential aspect of video game marketing. He said that while gamers may shift their attentions from one individual game or brand to another and split their time between watching and playing games in different ways, gaming systems and peripheral brands remain independent of these changes—creating long-term brand engagement.
He specifically names Razer as a brand to keep a close eye on. The PC and console gaming peripheral maker launched a gamer-oriented smartphone in October, which will test to see if the brand’s power can be extended into the mobile market.
“Razer is bringing its unique ability to design products that appeal to gamers to a market that has not shown much innovation in terms of design in recent years,” said Wijman.
Snapchat Could Become A Player
With Facebook’s increased gaming involvement over the last few years, it should be no surprise that Snapchat could be getting into the video game industry too. Tencent acquired a 12 percent stake in the platform last year, and the media giant implied that video games and ad sales could help the struggling platform rebound.
Although video game support on Snapchat may be a little unorthodox, it’s not completely unheard of, as the platform once hosted an 8-bit game called Serena Williams’ Match Point as part of a Gatorade promotional campaign for the 2016 US Open.
More details need to be worked out in the coming year, but Tencent has been operating games on its WeChat platform for years, so Snapchat may reasonably adopt a similar strategy. Fedina and Wijman are divided on whether such a move will significantly impact the industry.
“Snapchat already has an audience, so the important part to focus on will be making games that will click with its audience,” said Fedina.
Wijman doesn’t expect much from Snapchat’s service yet, but he does see it as interesting milestone for the future of games, given the current involvement of social networks such as Facebook.
“Ultimately, I don’t think the effect will be massive in the next year, but we might see casual gamers transitioning from dedicated game apps on their phones to playing games within popular apps such as Facebook and, potentially, Snapchat,” said Wijman.
Marketers will use CES as a springboard this yearto monitor how disruptive innovations like blockchain, voice assistants, artificial intelligence, virtual and augmented reality, among others, are going to shape consumers and industries alike.
The new technology and products that brands plan on introducing—CES will light up Las Vegas with over 3,900 exhibiting companies this year—will feed into the disruptive marketing innovations shaping trends that executives are monitoring as the year kicks off.
Steve Koenig, senior director of market research of the Consumer Technology Association—which owns and produces CES for the over 170,000 attendees that attend each year— identified five trends that marketers should watch for during the weeklong, across-the-strip show in Sin City:
Artificial intelligence (AI) and machine learning will aid marketers and brands to better understand, and even predict, the wants and needs for their customers.
Mobile and in-store augmented reality (AR) will continue to redefine the shopping experience.
Virtual reality (VR) will become increasingly more important to marketers who are selling experiences, especially with the rise of 5G.
Voice will become a preferred human-machine interface.
As stadiums and other sports venues become smarter and more connected, innovation in the world of athletics will lead to next-gen sponsorships and marketing opportunities, lending to a host of new advertising prospects, particularly via mobile.
“I believe these trends will disrupt and refine marketing for brands,” said Koenig. “As technology for marketers continues to evolve, brands will be able to connect with their customer more quickly and better than ever.”
Michelle Peluso, senior vice president and CMO for IBM, told AListDaily that she’ll be using CES to continue monitoring the emergence of advanced technologies like blockchain, AI and IoT to see how it can meet the individual needs and preferences for consumers.
“Each of these technologies offer a giant leap in using data to better understand and better serve customers as individuals,” said Peluso. “They offer tremendous opportunity for marketers to help their companies advance customer-centricity and develop new differentiating products, services and experiences.”
Emerging martech will eventually give marketers the data and insights that matter so they can create better brand experiences for consumers that are tailored to tastes, needs, timelines and preferred channels.
“Customers want marketers to give them something of value—something that makes them eager to engage with your brand,” said Peluso. “I believe emerging martech—particularly martech that applies AI to provide personalized experiences for customers—will enable us to do that.”
“Customers want marketers to give them something of value—something that makes them eager to engage with your brand.”—Michelle Peluso, SVP and CMO for IBM
Alice Chang, founder and CEO of Perfect Corp., makers of the popular app YouCam Makeup, told AListDaily that she and her team will also be using CES to debut and monitor new AI and AR tech innovation and gain valuable first-hand feedback from their target consumers to better serve the needs of their core audience.
“This glimpse into technology’s influence on consumer behavior is invaluable to the marketer to stay competitive, and the underlying trends that emerge at CES will transform businesses in the coming years”
As for the marketing trends to monitor at CES, Chang said that AI and deep learning are here to stay; AR will continue to drive sales; reliability for mobile tech in purchase decisions will grow, seamless online-to-offline customer experiences will drive retailer and brand loyalties, and she’ll be looking to leverage micro influencers for engaging and interactive live content.
“All five of these AI and AR trends relate to the evolving customer-purchase experience,” Chang said. “Continued advancements in AI and AR technologies are arming customers with the tools to make reliable and informed purchase decisions. Their growing confidence in technology continues to create a convenient and seamless online-to-offline experience.”
Peluso wants to use AI to enable consumers to do more in their professional endeavors than they have been able to before. In turn, marketers will understand much more about the customer on an individual level to create more personalized journeys that give greater value.
“At some point, search will move to voice-and-chat-powered by AI, and when that happens, there will be a new treasure trove of data for marketers to better understand and act on what customers want and need,” Peluso said.
As visibility and control over media spend becomes more challenging, there currently is a lack of transparency in ad players in who they are, what they do and where the money is going in the cycle, Peluso said.
“Many marketers are hesitant to use some of their most valuable first-line data because of privacy concerns. Blockchain allows them to use it securely,” said Peluso.
At CES, Peluso will be looking toward garnering more intel into the process of creating a blockchain where she can effectively track media buys and see who the players are, where there is duplication and who they can eliminate.
“This is an incredibly interesting and exciting time to be a marketer,” said Peluso. “The leading-edge technologies that are advancing every industry also have tremendous potential for our profession. All of these technologies open up a world of innovation and opportunities for the creation of entirely new business models.”
Both console and PC gaming saw growth this year, as video games continue to be treated as live services, bringing in revenues that rival or surpass those of the initial game purchase. However, monetization strategies for retail games, particularly related to “loot boxes,” hit some bumps, prompting controversy among the gaming community.
Other highlights include the fast growth of esports, marked by several major partnerships from traditional sports. Accompanying that is the increased emphasis on video content such as livestreaming, which helped lift games such as Rocket League and Playerunknown’s Battlegrounds to incredible heights.
Then there’s the highly successful Nintendo Switch in the spring, which was bookended by the release of the Xbox One X in the fall. The latter gaming system, which emphasized its computational power and high-end graphical capabilities, capped off the trend of “mid-cycle” consoles that began with the PlayStation 4 Pro in 2016—where more powerful game consoles came out before the lifecycles of their predecessors officially ended.
“Games As A Service” And Esports Drive Growth
According to Elena Fedina, senior analyst at SuperData Research, the console market grew by 12 percent and the PC gaming market similarly grew by 11 percent in 2017 compared to 2016. This was largely led by major franchises like FIFA and Call of Duty shifting more toward digital distribution and developers adopting the “games as a service” model by creating additional content that extends their games’ lifecycles.
Tom Wijman, market consultant at Newzoo, agrees that having games transition to live services has been the largest revenue driver for 2017, since the system makes games profitable beyond their initial purchase. But he also notes that PC gaming has had a particularly strong year, rivaling consoles with breakout hits such as Playerunknown’s Battlegrounds. The popularity of esports was one of the main drivers of growth, leading to a rise in broader competitive play.
“Looking at individual game titles on console and PC, it is clear that competitive gaming involving team play, rankings and livestreaming is claiming a growing share of overall game time,” said Wijman.
Esports had some major highlights in 2017 that will play out in 2018, including how luxury car brands such as Mercedes-Benz and McLaren entering the space. But the chief trend comes from how Blizzard Entertainment’s Overwatch and Riot Games’ League of Legends are building franchised leagues. Similarly, the NBA and Take-Two Interactive partnered to create the NBA 2K League, which puts the marketing strength of basketball teams such as the Dallas Mavericks behind esports teams, players and brands.
This kind of crossover will continue, as the NFL and MLB franchises have also begun stepping over into esports. There has even been talk about officially including esports as events in the 2024 Olympic Games.
The competitive gaming trend is also driven by the growth of livestreamed content. SuperData named Game Video Content (GVC) as a rising star when it comes to audience engagement, predicting that the number of worldwide viewers will reach 665 million this year, generating $4.6 billion in revenue. Livestreaming isn’t just critical to esports titles, but it has also benefited non-competitive single-players games such as Stardew Valley.
“Generally speaking, gaming is an active, ‘lean forward’ activity,” said Wijman, explaining the phenomenon. “A gaming session can be quite intense, even if it’s not a competitive game. Livestreaming has added a relaxing option for people to enjoy the content of a game in a ‘lean back’ manner.”
The year of gaming trends ended with a bit of controversy, as Star Wars: Battlefront II became the center of a debate regarding how systems such as loot boxes—which offer random rewards—are used to monetize games after their initial purchase. This has prompted some governing bodies to look more closely at certain games, likening them to gambling. However, both analysts agree that the issue was a natural stumbling block as developers and publishers experiment with games as a service.
“It was inevitable that there would be a clash between gamers and publishers, to say the least,” said Wijman. “We can’t say for certain that rising development costs are enough to justify adding these new monetization models, but we can say for certain that this switch to continuous monetization was always going to happen after mobile gaming paved the way.”
“Discussions of loot boxes as gambling is not new to games,” Fedina explained. “In Asia, developers were forced by law to disclose the chances of getting items from loot boxes to inform players earlier this year.”
But Fedina said not all titles that follow the games as a service path need to use loot boxes, citing League of Legends as an example. The free-to-play game makes the majority of its revenue by selling different characters and aesthetic skins, and will garner $22B in microtransaction revenue this year. Fedina also warns that developers need to be cautious with how they approach monetization.
Wijman said that it’s important to keep in mind that although the loot box controversy came from a vocal minority of gamers, it is this passionate group of gamers that publishers want to engage.
“I fully expect that we’ll see many more examples of publishers missing the mark looking for new ways to monetize the games,” he said, “but given the reported revenues, I don’t expect the overall trend to change.”
Nintendo Switch And Mid-Cycle Console Launches
This year’s big surprise came from Nintendo, which managed to turn around its years of declining revenues in just a few months with the release of the Switch. The console ended up outselling all others this year by relying almost completely on signature games such as The Legend of Zelda: Breath of the Wild, which received near universal acclaim from both players and critics.
“We estimate the console to sell 13M units by the end of 2017,” said Fedina. “Switch is skewed greatly towards physical distribution when it comes to big games like Zelda, but as more games come out on the platform we expect it to affect the digital space more.”
It’s too early to tell how well the Xbox One X has been doing in comparison, but Fedina is confident that the high-powered console will be popular this holiday season.
Wijman thinks the console has had an unremarkable release. “The potential power of the hardware is interesting for those dedicated to console gaming,” he said, “but the release missed a truly spectacular game release to accompany it that made full use of the raw power of the console.”
Whether or not players take to the Xbox One X may speak to how well they’ve accepted the mid-cycle upgrade trend. Last year’s Xbox One S console did remarkably well, but the console has a significantly lower price point, so it might not be an indicator of the Xbox One X’s potential success.
“Mid-cycle consoles are a new thing, and there are both enthusiastic supporters of this move as well as vocal opponents,” said Fedina. “However, these debates are often held on thematic gaming websites, and general consumers who are ultimately making the purchase aren’t always aware of these debates. We’ll have to wait and see how Christmas goes to be able to speak to actual numbers without speculation.”
Wijman said that enthusiasm for both the PlayStation 4 Pro and Microsoft’s new console has been limited, but maybe that was to be expected.
“By releasing an upgraded, ‘elite’ version of an existing console, Microsoft and Sony were never likely to draw a huge new crowd,” he said. “The release was mostly geared towards core console gamers looking to get the most out of their experience.”
AListDaily digs back into its archive of exclusive interviews and feature stories from 2017 across the gamut of marketing beats it reports on and aggregates some of the most interesting marketing quotes executives had to share with us.
“There’s a constant drumbeat of marketing technology coming onto the scene. As a marketing leader, you have to understand all of the possibilities, and make decisions about expensive martech purchases. Your tech strategy is also a constant piece of the puzzle, and I don’t think that will be stopping anytime soon. Breaking through and getting to your buyer set in a compelling and engaging way is always big. I see the frenzy of marketing automation still very relevant.” —Lauren Sallata, Panasonic USA’s chief marketing officer and senior vice president
“Amazon is basically trying to become the one-stop-shop for everyone and remove brand value. They’re trying to disintegrate into different areas by saying ‘the brand is separate from the product.’ Relevance is a very big aspect of that . . . How you really connect with consumers, both as brands and retailers, in an omnireality world is the next question that marketers need to start answering. Start thinking, preparing and integrating for that world a little bit more, not just waiting to see who’s going to do it next.” —Lokesh Ohri, a principal at Deloitte emphasizing in omnichannel retail, digital and supply chain strategy
“Our research indicates that millennials are looking to make an emotional purchase . . . Millennials want to be different and make decisions on their own. They don’t want to follow the status quo—but they do like a status symbol.” —Katie Inderelst, head of Alfa Romeo marketing and communication
“If you become data-obsessed, then your videos will quickly deteriorate and lose their appeal. In social and digital platforms, data is important, but it’s also ephemeral, so basing everything on the data of last month can have devastating effects on the long run.” —JP Polo, director of social and digital video content for National Geographic
“In my mind, the thing that should change [about video is] the value of digital video advertising, and I think it will. There’s a death grip on legacy advertising formats. Pre-roll has been a part of the equation for some time, but obviously, there are a number of other platforms—particularly on the social side of things—that are emerging faster than ad formats can be created. But that’s the way it works. Monetization will come eventually, so we’re focusing on creating great programming to accentuate each platform and on building an audience—the fun stuff. —RJ Bentler, Pitchfork’s vice president of video programming
“As voice itself evolves, along with the technology platform evolution, we will evolve with it because this isn’t just a nifty gimmick. The thought of interacting with voice is something that will become part of our everyday lives . . . There’s no question in my mind that when done right, voice makes everything easier. I think it’s unquestionable that it’s here to stay. It’s going to get exponentially better and faster. The fat fingers will go away, and we can have a natural conversation with whatever platform it is.” —Lee Applbaum, Patrón’s global chief marketing officer
“I think that mobile gaming is the fastest growing entertainment medium. It’s actually bigger than the movie business right now. So, if you own a brand or IP, thinking about what you’re going to do with it from a mobile gaming perspective is one of the first thoughts that will come to your mind.” —Chris DeWolfe, Jam City CEO and co-founder
“Today’s consumer, this generation, has been spammed with advertisements since the inception. They have access to every device known to mankind, and just the consumption of esports and video game content as a whole has gotten easier because it’s everywhere and it can be in your hand and on your laptop—it can be whenever you want it. What I’ve seen in the content that has reached and connected is there has to be an authenticity there. A genuine desire to engage and participate, not just talk to and dictate. When you see a consumer come online and spend their quality hours—which a lot of them do two to three hours on end when they sit down to game—that has a core authentic background to them.” —Rick Fox, owner of esports team Echo Fox and three-time NBA champion
To stay ahead of the proverbial curve with their consumers, marketers must consistently tweak and craft strategies to complement their evolving missions.
AListDaily polled a group of executives to learn about the marketing trends each is monitoring and exploring for their brands in 2018.
“The beauty of being a marketer today is that you have to keep your finger on the pulse and be willing and ready to change. Trends are changing every day, as well as the way people are being touched. We’re seeing a shift from retail to online. For me, it’s always trying to be open and listen to what’s happening. I have to be a responsive marketer and move as the trends and times do.”
—Patrick Buchanan, global marketing director at K-Swiss
“Digital is changing every day, and it’s definitely the hardest part of the business to keep up with—how to most efficiently use all of the tools that should make it easier to develop one-to-one relationships with customers [with personalized advertising]. Consumers should not see the same ad in the digital space. Marketers know a lot about people, and we should be serving something that’s personal and important to consumers.
“That’s a huge challenge because that not only means tech for ‘how do we mine the information about consumers’ but also the tech that develops hundreds and thousands of iterations for those ads cost effectively. That space is evolving so quickly, and it’s happening so fast. For marketers, that’s the most interest thing to [look forward to.]”
—Brian Bolain, corporate manager for Lexus product marketing and marketing communications
“I’m focused on integrating customers into our brand experience at the most personal level. Media fragmentation is nothing new, but I think we’ll see brands continuing to prioritize personalization and curation at every touchpoint. For me, it’s about creating content and opportunities that really bring value to our audience. Expect to see a big push around publishing, cause-based partnerships and loyalty programs.
“Marketing automation is also top of mind. With an increased emphasis on long-term customer engagement tactics, brands have to concurrently work smarter and consolidate organizational resources, letting data and AI-technologies lead wherever possible.”
—Michael Cammarata, co-founder & CEO of Schmidt’s Naturals
“I’m excited to see how brands take experiential events to the next level in 2018 as millennials prioritize experiences over most everything else. We’ll be closely monitoring the marketing tactics that rise from focusing on the experiential aspects of marketing. Experiences are the priority for us and our target market. Pop-ups and events aren’t new, but brands seem to be integrating themselves in people’s environments in more focused, unique and snapable ways.
“We’re also excited to see what marketing tactics rise from VR and AR, specifically looking at what might develop that has more substance and utility than simply filters and animated characters on the street.
—Rip Pruisken, co-founder of Rip Van Wafels
“The role a brand plays in creating entertainment as a producer or film financier is going to be something to look for. Brands can have a role in creating what’s in culture, and not just being an advertiser of culture. As the studio model only continues to fund things with built-in audiences, established IP, sequels or superhero [films], there are still a lot of stories that need to be told. In many ways brands have an opportunity to step in and help to make sure stories are told in a current system and set-up that’s not designed to finance them.”
—Nathan Tan, associate director of brand partnerships and experiences for Cadillac
“The Asics brand still has a long way to go. We just launched our first major marketing campaign in the last two decades. First and foremost, my eye is on digital, and especially with what we can do that’s interesting and disruptive on social channels. Our focus and investment going into 2018 is really on unique and interactive content that begins to immerse our consumers.
“Everything around digital and interactivity will be key for us. We will continue to redefine what relevant partnerships and sponsorships look like for us as a brand in 2018. A lot of our competitors have previously done activations in the music space, so we really want to make sure what we’re doing in the space is very ownable for us, and comes back to who we are as a brand and resonates with what our ethos is.”
—Sarah Bishop, vice president of marketing for Asics
“The best thing about marketing is being able to track and analyze to see if we’re reaching the right consumer. A lot of the tactical and addressable, and having a better understanding of our approach, is something of a trend to test and follow to see how it helps us specifically reach consumers, versus just throwing a blanket approach.”
—Katie Inderelst, head of Alfa Romeo marketing and communications
“I cannot see what’s coming, because the rate of innovation is so fast that my best guess is we have no idea what we could potentially be exploring in just a few short months. Because of that, we try and keep a significant portion of our digital innovation budget unallocated to be able to respond to emerging technologies and trends and can move very quickly once we’ve found the right partners to help us implement our vision with excellence.”
—Lee Applbaum, Patrón’s global chief marketing officer
Mobile gaming grew at a phenomenal rate in 2017, with highlights that include increased support for augmented reality from both Apple and Google, Google’s transition to using only Universal App Campaigns for network-wide mobile promotions, greater reliance on influencer marketing, and longstanding games such as Candy Crush continuing to dominate in the space while Clash Royale maker Supercell is named as the highest earning mobile publisher for this year.
But as the mobile game market continues to evolve, app discovery and user retention remain prevalent issues. So marketers are adopting new channels to both acquire and keep players.
In the spring, Apple redesigned its App Store to give smaller apps a better chance to compete against longstanding titles if they are unique and interesting enough. Changes included the removal of the “Top Grossing” chart, which analysts and media previously used to track the most profitable games, thereby shifting the focus to the “Top Free” and “Top Paid” charts, which are determined by the number of downloads games get.
“The metric of success has shifted to those games with strong downloads in the Top Free category and success in the paid app spectrum,” said SuperData senior data analyst Alec Nezin. “New highlights on the App Store, such as ‘Games We Love,’ ‘Best New Updates’ and ‘Games You Might Like’ bring a more qualitative focus to their definition of success.”
While Nezin said that the retirement of the Top Grossing chart gave Apple more control over what apps succeed, Kooistra said that it was mostly a cosmetic change, given how it is still possible to dig up the top revenue information if you know where to look.
“These changes haven’t affected app store analytics firms or their results,” said Jelle Kooistra, Newzoo’s head of mobile. “Less than five percent of mobile game revenues today come from paid games, making it very difficult for these games to reach the top grossing charts, with Minecraft and Monument Valley being notable exceptions.”
Cosmetic or not, the shift has been felt by game developers and publishers. “Most rank-based charts in any segment, are extremely polarizing,” Nezin explained, “with almost 30 percent of all downloads concentrating in the top 10 apps. Here, the snowball effect is quite evident.”
That’s almost certainly why mobile game companies such as Zynga still strive to rise to the top of the Top Free list.
“We absolutely want to win in the Top Free charts, and it’s an honor to have your game rank as a Top Free game,” said Bernard Kim, Zynga’s president of publishing. “When you’re at the top of the charts, it’s an indication that something exciting is happening in your game and it’s resonating with players in a meaningful way. A high ranking helps with organics and brings more players into your game, and it also serves as a sign of the quality of your product.”
Kooistra agrees that a high ranking on the Top Free charts leads to better discovery because players don’t have to actively search for these games, but he also said that there is a potential downside in that these users are less likely to monetize well.
“Since finding long-term users with strong monetization is the key, I would say catering to your active players is more important than making sure you reach the top rankings in either category,” Kooistra said.
Even with the App Store redesign, discoverability remains a key issue for mobile games on both the iOS and Android platforms, and the issue will continue to grow as the market does. Although store placement remains one of the best ways to get noticed, companies are turning to other channels to get the word out about their games. Nezin predicts that, “As time goes on, mobile developers will lean more and more on traditional forms of advertising to promote their product.”
“To win over the long-term, companies need to have a full stack publishing team and capabilities to break through,” said Kim. “Not all games respond to app store featuring the same, so you need to fire on all cylinders and have multiple channels where you’re promoting your game. For Zynga, app store placement is important as it creates an entertainment ‘moment in time’ and amplifies our fully integrated marketing campaigns designed to elevate our games and strike a chord with players.”
https://youtu.be/xCTp9EW4tyE
Kim pointed to the launch of Words With Friends 2, which he said married brand marketing, user acquisition, partner relations and PR. The game was featured on both Apple and Google’s app stores, which was complemented by integrated campaigns that included the franchise’s first TV commercials.
Nexon M general manager Lawrence Koh said that Nexon M saw the increased use of high-profile brands to help with app store discoverability, which is a trend that is likely to increase. Publishers and developers will need to allocate higher marketing budgets before the launch of a new game to drive awareness, meaning that the table stakes to launch a new game will become significantly higher.
According to Kooistra, publishers that don’t necessarily have a strong relationship with Apple and Google are already using a variety of ways to promote their games. The mobile game market is still in rapid development, with pop culture icons such as Star Wars, South Park, Stranger Things and Rick and Morty growing their brands by partnering to create mobile game adaptations.
“Publishers have been looking more into relatively new tools for marketing, such as influencer marketing and basing games on popular franchises from pop culture,” said Kooistra. “Additionally, organic growth from word-of-mouth remains a strong tool, especially from games within a specific niche.”
After acquiring users, the next biggest issue is retention, with Nezin pointing out, “As time has gone on, the average mobile user has played more games on average each month, but average conversion and spending has not come close to matching this pace. This means that players now tend to play more games than in the past, but still only commit to the one or two that stand out to them most.”
Nezin further explains that average players are tasters by nature, and because of that, retention in the first day of a mobile game’s lifecycle is “truly abysmal.”
“While a game may have millions of downloads, that does not necessarily convert to meaningful engagement or revenue nowadays,” said Nezin. “Developers will need to aggressively adapt to keep their players engaged month over month.”
That means treating free-to-play mobile games as ongoing products. Nexon M looks ahead by having a 10-year service plan for each of its mobile games, and Kim said that Zynga has prioritized growing existing live service franchises such as Zynga Poker, Words With Friends and others, expanding and innovating them to inspire more in-game engagement.
According to Koh, “All parties involved in supporting a new mobile game need to be aligned on supporting the game as a live services product. This means that publishers will not only need to think of the launch marketing efforts but also have a plan in place to engage with users months and years out after launch.”
“As the industry matures, players will have more amazing games to choose from, raising the bar for every mobile game company to innovate and deliver across the board,” said Kooistra. “This process will definitely make it more difficult to retain users for a very long time.”
Having made a name for itself in Japan, the Sword Art Online (SAO) franchise—which includes novels, comics, games and an anime TV series—is ready to grow its fandom in the US. All companies that work with the SAO license are coming together in a unified effort to promote the brand as a whole.
Earlier this year, Bandai Namco launched Sword Art Online: Memory Defrag, the first mobile game based on the franchise, in coordination with the launch of the animated film Sword Art Online The Movie – Ordinal Scale. The co-launch with the movie and tie-ins may satisfy existing fans, but its long-term goal is to bring in new audiences. Product manager Haruki Watanabe, who spoke to AListDaily through a translator, explained that the side-scrolling role-playing games are designed to appeal to casual gaming audiences to introduce them to the IP, as it features scenes lifted from both the movie and the TV series.
“The game came out at the same time as the movie, so people who watched the film can come to this game and enjoy the anime stories too,” said Watanabe. “This could be people’s first experience with the anime and then go watch the show.”
https://youtu.be/k3bJR7YT6kM
To promote the game, Bandai Namco coordinated its marketing with Aniplex, which holds the SAO license. Aniplex is also part of the Anime Consortium Japan, which Bandai Namco bought out in March for 2.1 billion yen ($18.5 million US). Watanabe explained that Aniplex promoted the game whenever it made new announcements concerning new movies or the third season of the show, mostly cross promoting on Facebook and other social media channels.
“There isn’t really a big difference in doing the promotion between the US and Japan, but there are little differences,” said Watanabe. “Our creatives on Facebook are a little different. In Japan, our text emphasizes what players get when they sign up, but we don’t do it as much in the US, relying mostly on the picture.”
“The strategy is that we’re not trying sell each business by business—having each company sell whatever they have,” said Wataru Nakasuji, Sword Art Online: Memory Defrag’s promotional manager for US and Europe. “Our strategy is to sell Sword Art Online, and we’re doing business with the IP. All companies that are working under SAO are helping each other. So, we’re doing the promotion for the movies and they (Aniplex) are doing promotion for the games—we’re cross-promoting with each other to maximize SAO’s IP value.”
In addition to cross promotion across social channels, Bandai Namco is putting increased focus on attending public events such as the New York Comic Con last October to engage with fans directly and grow SAO’s audience.
“We’re going to have a new anime season next spring, which will be huge,” said Watanabe. “So, we’re going to have offline events, meaning that we’ll host fully dedicated events to promote both the anime and the game. That’s when we’ll engage with new fans in the US. There also might be a new movie coming out next year, so we’ll come up with promotional ideas to engage with fans around that if it happens.”
“The entire SAO community is tied together in the media mix—the figurines, the comics, novels and anime are all intertwined so that they do the marketing together,” added Nakasuji. “That’s the strength SAO has compared to other IPs because they’re all doing it as one big push.”
The main driver for the game will be existing fans of the anime series, but Nakasuji reiterated that the game is just one aspect that will grow the entire franchise.
“At the end of the day, we’re promoting the IP as a whole,” said Nakasuji. “So, even if you don’t know the SAO brand or its content, if you’re enjoying the game, it becomes a gateway to the other products in the IP.”
Watanabe added that even if players aren’t familiar with the IP, they may be attracted to the game’s graphics and action, making the mobile title a kind of introduction to its complex universe—the same way other types of media and products will introduce audiences to the game. Ultimately, if the IP doesn’t help the game stand out on the mobile market, then it’s casual gameplay might.
