Prospects of in-game advertising for Nepalese brands
Esports is a multi-billion industry globally, $3 billion USD to be exact! With millions of daily active users, in-game advertising has become a new avenue for advertisers to especially reach especially young demographic. As the young people increasingly move away from cable TV, in-game advertising has opened up new avenue to reach potential customers. However, this seems to be a missed opportunity for Nepalese brands as they have yet to venture in in-game advertising. In this article, we will point out two core reasons we think that Nepali advertisers need to start prioritizing in-game advertising!
1. Increase in esports players in Nepal
With average income of Nepalese households increasing; high speed internet connectivity; and availability of good quality mid-range priced smartphones and laptops, young people are increasingly turning to Esports. In the last five years, Nepal has witnessed an exponential growth in online gaming. With millions of young Nepalese engaging in daily online gaming, in-game advertising can be a great avenue to reach and build loyal customers.
Not only are we seeing an exponential increase in online gamers, but we are also seeing them bring home thousands of dollars to Nepal as prize money! Nepalese gamers have been making a big headway in international Esports championship. A total of 120 Esports Nepalese players have been awarded a total of $828,703 USD in prize money across 27 tournaments, majority of which comes from PLAYERUNKNOWN’S BATTLEGROUNDS Mobile . Out of the total, $807,169 Nima Tamang alone has wone more than$41, 137.5 USD in prize money from PLAYERUNKNOWN’S BATTLEGROUNDS Mobile tournaments.
Possibility for a young average teenager to make millions in Nepalese rupees playing games has further helped increased appeal in online gaming!
2. Decrease in Cable TV content consumption
While most brands in Nepal still focus a majority of their advertising budget on TVC ads, the number of cable TV consumers have rapidly decreased. Especially with high speed internet connectivity, young people are increasing consuming content online rather than on network TV. With ease of access to digital streaming services like Netflix and YouTube, the number of cable TV consumers is expected to further decrease. After all, when was the last time you watched network TV? We are pretty sure that majority of our readers do not watch or subscribe to cable TV.
Outside Nepal, even traditional TV channels have slowly started to shift towards online streaming business. Case in point, SonyLiv, Zee 5, HBO Max are all streaming platforms that are owned by traditional TV channels. This move from traditional cable TV to online streaming platforms is a clear trend that shows the inevitable death of cable TV in future years. Like always, Nepal is late to the party however. While for now, advertisers might still orient themselves towards TVC ads, advertisers need to understand that TV is a dying breed. If advertisers cannot look for alternate advertising platforms sooner, global competitors will demolish our fledgling corporate sector and brands.
Summing up
Esports has opened a new avenue for brands, however, it is beyond belief that brands and marketing agencies have yet to realize the value addition in-game advertising can bring. First, majority of the Nepali gamers are young. Being able to hammer your brand in their minds can help build long lasting brand loyalty. Second, majority of the gamers come from relatively sound financial background, meaning that the brands can make higher returns on their advertisement costs since they reach customers who can afford to buy their products. Third and most importantly, in-game advertisements are relatively cheaper than TVC ad slots. We will soon feature an article highlighting why cable TV is a dying breed. However, the gist is that TVC ads, in today’s context, provide increased diminishing returns. Therefore, brands need to be cognizant of this and look for alternate marketing and advertising platforms to ensure that they get the best value for their budget!
