Samsung Ads Gaming White Paper [PDF]

Gamers in the age of streaming U.S. Only Lorem ipsum Behind the Screens: Gamers in the age of streaming Streaming has been embraced by gamers and there’s As the TV landscape continues to shift to a streaming-first environment, gamers are leading the charge and not looking back. The advanced capabilities of gaming consoles and gamers’ adoption of ad-supported streaming mean new opportunities for marketers and game studios. 2 Behind the Screens: Gamers in the age of streaming Samsung Ads’ data is not modeled or based on aggregated panels. It is one-to-one, deterministic data. Samsung Ads’ first party data is powered by Automatic Content Recognition (ACR) technology which recognizes content viewership, across linear TV, OTT, and gaming environments. We can measure whatever is happening on the TV device. Our Smart TVs offer consumers the choice to opt in to receive Interest-Based Ads and the ability to customize their Smart TV viewing experience. We employ industry-standard security safeguards and practices to protect information. For more information on how Samsung protects consumer privacy please see our U.S. Privacy Policy at https://www.samsung.com/us/account/privacy-policy/samsungads/ We measure gaming by presence and duration of play on a game console connected to a Samsung TV in the household. In order to be included in this analysis, play duration must be a minimum of 3 minutes during the time period. In the U.S., Samsung Smart TVs had a universe of 19M+ connected game consoles in 2021. The insights within were taken from the analysis of Samsung Ads proprietary ACR data throughout 2021 with an emphasis on the 4th Quarter and with comparisons to 2020 in some cases. We supplemented insights from Samsung Smart TVs with an attitudinal survey of one thousand owners of Samsung Smart TVs in the U.S. who are also heavy gamers (gaming a few times per week or more), to shed light on gamer motivations and behaviors. This data was collected in March 2022. 3 Methodology Samsung: As the number one TV manufacturer globally, Samsung is dedicated to creating a premium experience for the gaming audience. From screen size and quality to gaming mode on 4K QLED, Samsung Smart TVs are engineered for gaming. We understand the gaming audience from both a hardware and behavioral perspective. Our unique data allows us to understand how gamers spend time on their Samsung Smart TV, whether watching linear TV or streaming content, and how they engage with their game consoles. Samsung Ads’ ACR data recognizes hundreds of the most popular game titles in the U.S. and identifies gaming sessions as separate from viewing sessions. This data helps us understand details about game devices and games, enabling us to help brands reach players of specific consoles, games and genres. Our robust reporting allows us to report on engagement and lift on users exposed to your ads. Brands can reach gamers and drive high visibility with a premium ad placement in the Game Console Launcher on Samsung TVs. This means that marketers can reach the highly-engaged, hard-to-reach gaming audiences just as they start their games. Behind the Screens: Gamers in the age of streaming Image 4 5 Gamers on Despite the significant growth in the number of gamers, gaming behavior remains consistent. Gamers spend an average of just over 2 hours per day gaming on their Samsung TVs. Source: Samsung Ads, Proprietary ACR Analytics – 2020, 2021 US Only Behind the Screens: Gamers in the age of streaming 16,409,385 19,789,421 2020 annual gamers 2021 annual gamers Average Daily Hours Gaming/Day H:M Daily 2:07 2:05 H:M Daily 2020 2021 +21% The number of gamers in the Samsung TV Universe increased significantly in 2021 to nearly 20 million. 6 Next-Gen gamers are Both Microsoft and Sony launched next-gen gaming consoles in 2020 with the Xbox Series X and PS5. T o understand how those consoles change gaming behavior, we looked at how their usage affects gamers’ engagement. On average, Next-Gen gamers (those playing these next-gen consoles) spend over 60% more time with their consoles than Previous-Gen gamers. Higher engagement means that advertisers looking to reach gamers face stiffer competition for Next-Gen gamers’ attention. Advertisers need to find new and different methods to reach and engage Next-Gen gamers. And Next-Gen gaming is set to increase — making this audience even harder to reach via linear TV advertising. Seven in ten gamers with previous generation consoles plan to upgrade to a next generation console in the near future. Gamers are tech-forward consumers and cite the best gameplay and technology available as reasons to upgrade. Previous-Gen gamers upgrading to Next-Gen consoles Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. Samsung US Consumer Gamer Survey, March 2022. +61% Behind the Screens: Gamers in the age of streaming Hours per week Hours per week Previous-Gen gamers Next-Gen gamers 26%T o get the best gameplay 24% T o have the best technology update 20%T o get to play the next-gen exclusive games 13% T o have a console that can do much more than just game 13%T o get the best graphics 40% 32% Likelihood to upgrade in the near future Likely Very likely 7 How are gamers spending their Of course, gamers are viewers too. But across 80% of all the time that gamers spend with their TV, they are unreachable by traditional TV advertising. In 2021, gamers spent more than half of their TV time streaming and just over a quarter of TV time gaming. Compared to the Samsung Universe, gamers are only slightly more likely to stream, but they are much less likely to watch linear. Gamers spend 42% less time with linear compared to other viewers. In fact, 74% of gamers rely mostly or entirely on streaming services for their TV viewing. 43% of gamers don’t have a Pay TV subscription and another 31% have a cable subscription but spend most of their time streaming. How gamers access TV content Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. Samsung US Consumer Gamer Survey, March 2022. Behind the Screens: Gamers in the age of streaming 31%I currently subscribe to cable but spend most of my time with streaming services 26%I currently subscribe to cable and spend most of my time watching broadcast and cable TV 23%I recently canceled my cable subscription and rely on streaming services for TV 20% I have never subscribed to cable and have always relied on streaming services for TV Share of TV Time 20% Linear 58 Index vs. Samsung Universe 28% Gaming 234 Index vs. Samsung Universe 52% Streaming 111 Index vs. Samsung Universe 8 Gamers are streamers T o reach the Gamer audience, advertisers must shift linear budgets to CTV. 84% of gamers fall into our “Mostly Streamer” bucket of viewers who spend more time with streaming services than with linear TV, an even greater proportion than the overall Samsung Smart TV Universe, 74% of whom are “Mostly Streamers.” This 84% of gamers spend so much time with streaming that they consume just 18% of the total linear minutes watched by all gamers in the Samsung Universe, making them virtually impossible to reach through linear. Linear advertising is more likely to hit a small proportion of gamers — just 16% — who consume over 80% of the total linear minutes watched by the group. Gamers are also movie buffs. The content genres they report viewing most often are movies (both traditional and streaming originals) and crime dramas. Many are also regularly streaming gaming video content (GVC) such as video gameplay by streamers, competitions among amateur gamers or influencers, as well as professional esports competitions. Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. Samsung US Consumer Gamer Survey, March 2022. Behind the Screens: Gamers in the age of streaming Time Spent in Linear Time Spent in Streaming Samsung Gamers 84% 18% 90% 82% 10% 16% Mostly streaming gamers Mostly linear gamers T op genres of content gamers stream on a regular basis 50% Theatrical release movies 49% Streaming originals (series & movies) 41% Crime dramas 37% Gaming video content 32% Reality 29% Documentaries 9Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. Samsung US Consumer Gamer Survey, March 2022. when they break from gaming Gamers are embracing ad-supported VOD and just are as likely to use A VOD as ad-free SVOD services. Advertisers can reach gamers when they’re not gaming with both in-stream ads and home-screen tile ads Gaming Consoles are being used for more than gaming and are offering advertis- ers more opportunities to connect with gamers outside their gaming sessions. Nearly half of gamers are using their consoles to stream content through Netflix, Hulu and other services—making home screen tile ads a prime opportunity to reach gamers before they enter a non-ad-supported streaming environment. Behind the Screens: Gamers in the age of streaming 77% 75% 48% SVOD AVOD TVOD Gamers Who Use Video Subscription and Ad Supported Video Services None of the above Rent / Buy movies Watch live TV through my cable subscription Stream content through Twitch Watch movies from my library Social Media (Facebook, Twitter and others Browse the Internet Stream content through YouTube Stream content through Netflix, Hulu and other services. 48% 47% 37% 36% 36% 32% 29% 14% 28% Focusing in on Just as streamers are competing for gamers’ attention, so too are game studios. There are only so many hours for game play in a day so making games sticky to ensure extended engagement is of primary importance. What follows is an analysis of our Samsung Ads ACR data describing three key gaming audience segments: New, Lapsed, and Churned. Understanding these gaming audiences is critical. We have created benchmarks for these audiences against gamers of the top 10 game titles within the Samsung ecosystem during the 4th quarter of 2021. Because Lapsed and Churned gamers have been inactive for 3 months or more, the benchmarks for these segments represent the opportunity for game studios over and above the active user base during the quarter. Across the top 10 games, re-engaging Lapsed gamers would increase the active user base of a game by 69%. Re-activating Churned gamers would add an additional 65% of the active user base. T argeting these users with the appropriate message represents an enormous opportunity. Opportunistic audiences by segment across top 10 games New gamers as a % of quarterly active gamers 48.7% 69.4% 65.2% Increase to active user base by re-engaging Lapsed gamers Increase to active user base by re-activating Churned gamers Behind the Screens: Gamers in the age of streaming New gamers Gamers who are using a game that they haven’t played previously. Key Samsung gaming audience segments Lapsed gamers Gamers who have played a title within the past 3 months but haven’t returned. This lapsed segment is key to game publishers because beyond a 3-month window, a gamer is unlikely to return as an active player. Churned gamers Gamers who played a title 4 months prior but haven’t returned. Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. 10 18% Reaching these gaming audiences effectively requires an understanding of their TV viewership. We used our data to detail viewership of each of these segments across some of the top 10 game titles in our analysis. Platform viewership TV usage time by daypart Streaming viewership 11 New gamers — sports genre New gamers become heavily involved in gaming and spend more of their time with their game console than with other TV content, particularly during daytime and Primetime hours. These gamers are an important segment who have just started their experience. Messaging should be frequent in order to keep the gamer engaged. Behind the Screens: Gamers in the age of streaming 82% Mostly streamers Index to overall gamers: 98 Mostly linears % of audience AVO D 71% SVOD 70% Viewing time/day 1hr:15mins 1hr:16mins Index to overall gamers: 113 Breakfast Daytime National Prime Time Late Nights Overnight Streaming Game console Linear Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. Lapsed gamers— first person shooter genre (A) Lapsed gamers of this first-person shooter title shift more of their viewing to linear compared to overall gamers but are more likely to be found streaming across all dayparts. These gamers are at risk of churning. Messaging should focus on new game features and updated game content. Behind the Screens: Gamers in the age of streaming 12 Breakfast Daytime National Prime Time Late Nights Overnight Streaming Game console Linear Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. TV usage time by daypart 23% Platform viewership Streaming viewership 77% Mostly streamers Index to overall gamers: 92 Mostly linears % of audience AVO D 70% SVOD 71% Viewing time/day 1hr:16mins 1hr:21mins Index to overall gamers: 144 Churned gamers— first person shooter genre (B) Those that have churned from this first-person shooter title split their TV time consistently throughout the day with streaming and game play clearly a preference over linear. These gamers have moved on to other titles or activities. Messaging should focus on win-back strategies highlighting what engaged these gamers initially. Behind the Screens: Gamers in the age of streaming 13 Breakfast Daytime National Prime Time Late Nights Overnight Streaming Game console Linear Source: Samsung Ads, Proprietary ACR Analytics US Only 2021. TV usage time by daypart 17% Platform viewership Streaming viewership 83% Mostly streamers Index to overall gamers: 99 Mostly linears % of audience AVO D 73% SVOD 73% Viewing time/day 1hr:22mins 1hr:25mins Index to overall gamers: 106 14 What you Behind the Screens: Gamers in the age of streaming Gamers are more likely to stream than the overall Samsung universe. Gamers are embracing ad-supported streaming (A VOD). Marketers must balance their plans across both linear and streaming to capture gamers where they are viewing content. Marketers must include video ads in A VOD environments to effectively reach gamers when they take a break from gaming. Gamers who have not engaged with a particular title in 3+ months have moved on and rarely return. Game publishers must understand the mix of new, lapsed, and churned gamers to tailor messaging to each segment and maximize their active gamer base. Next-Gen Console gamers are spending notably more time with their consoles than previous generations. Marketers must adjust their strategies and look for innovative solutions to reach gamers in and out of the gaming console environment. Home screen tile ads are an ideal way to reach gamers just before and after their game play. Gamer behavior Implications 15 Gamers on the Samsung platform Audience Profile Behind the Screens: Gamers in the age of streaming Source: 2021 Doublebase GfK MRI weighted to Population (000) – Indexed to Overall Population, Base: Samsung Smart TV Owner and Heavy/Medium Video Game Player. more likely to be the decision maker for an auto purchase or lease in the last 12-months more likely to have 4 credit cards more likely to be a New T echnology Super Influencer more likely to completely agree with the statement “I think of my cell phone as a source of entertainment” more likely to be a sports enthusiast more likely to travel domestically with friends more likely to dine 12+ times at fast food or drive-in restaurants in the last 30 days more likely to agree with the statement “Getting exactly what I want is more important than the price of an item” How Samsung Ads can help We work with partners to leverage our exclusive Samsung data, insights, and advertising solutions to reach the right audience and measure attribution for your media investments. Advanced Gamer T argeting We can target by console, by genre and by franchise. We can reach new, active, lapsed, and churned Gamers throughout a game’s lifecycle. We can suppress and re-target exposed players. We can do this from the moment someone turns on their TV and as they enter their gaming session. Enhanced Audience T argeting With our ability to capture real-time TV and Gaming behaviors from Smart TVs, mobile, and connected devices, we can combine additional targeting layers based on viewership, device and app usage, and CRM customer data. Samsung Advertising Solutions We work with partners to reach gamers through brand-safe advertising solutions across CTV, mobile, PC, and Samsung’s exclusive native ad experiences on Smart TV & Galaxy devices. This enables advertisers to reach gamers in streaming and contextually relevant environments within A VOD apps including our FAST service, Samsung TV Plus, and throughout the Samsung household as consumers consider their next gaming experience. Exclusive Analytics & Insights Unique insights are derived from Samsung’s deterministic data at the device level so we can measure engagement and gameplay attribution for advertising campaigns. We utilize this to complement your existing linear TV and OTT strategy to drive incremental reach and gameplay conversions as well as provide insights into your audiences' cross device behaviors. Samsung Cloud Gaming on Smart TV In Summer 2022, Samsung launched the first ever Gaming Hub on all new Samsung Smart TVs. Samsung Gaming Hub is the new home for gaming on your Samsung Smart TV. It offers consumers the ability to play the biggest games from your preferred gaming platform — consoles or other top cloud gaming services such as Xbox Game Pass. The Samsung Gaming Hub is a new exclusive opportunity for advertisers to reach gamers in a premium environment on Samsung Smart TVs. 16 Behind the Screens: Gamers in the age of streaming About Samsung Ads Samsung Ads is an advertising ecosystem spanning hundreds of millions of smart devices across TV, mobile, and desktop. With the largest single source of TV data in the market, we not only have more, we have double the TV data scale of the next largest competitor. Our unrivaled understanding of consumers, powered by exclusive Samsung data and insights, drives more engagement and delivers more results. With Samsung Ads, advertisers can achieve reach, scale, and precision in every connected moment. Get in touch at adsales@samsung.com. Behind the Screens: Gamers in the age of streaming 17