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Jameson Hsu on Online Gaming and Advertising

with Don Schechter

Jameson Hsu talks about the online gaming community and how it has not been effectively reached by advertisers. He believes there is tremendous opportunity within the market to reach out to people and show them the power of gaming.

Transcript: Jameson Hsu on Online Gaming and Advertising

I think the biggest challenges facing interactive marketers will probably be understanding the landscape. The online advertising space is becoming so fragmented now that they're overwhelmed with options, and getting understanding of the space, the demographics, the people that they are reaching, consumer behavior, is really challenging. From what we see, it s definitely one of the biggest challenges. Historically speaking advertising is a good barometer for the economy. However, I think this is a little different from years past in that online advertising is more accountable, you are seeing better results, advertisers are more goal oriented, and they can have better metrics, so the online spending will probably not be as deep a dramatic cut as in year past. The biggest challenge that we'll face is clearly education. Helping the online advertising market understand the space that we re in. Our focus is gaming and reaching the audience that plays games and this is something still very new to them and I think helping them understand who is playing these games, why they re playing them, why it s the number one online content out there, higher than video and social networks, is something that the public media has not done yet and something that we need to go out and do for them. Digital marketers definitely do not understand the impact that games have on their audience but that s our job, is to go out there and help them understand this, and help them do their jobs better. A recent Parks and Associates study showed that over the course of a week 34% of online audiences go online to play games, vs. 29% for videos and 19% for social networks. So it s clear that people are spending a lot of time playing games, it s just a matter of helping marketers understand that there is this audience out there. The average gamer very different from what we've seen in years past in that they were defined as the 18-24 year-old male. Right now with the online space, the audience is so diverse, because it's free to play, they re all accessible online, and you can play them anytime you want, 24/7. We re seeing people from kids to adults. The peak time which is very surprising which we see people playing games is between 12pm and 4pm, which is very interesting because it is not your core-gamer any more, it s not your 13-24, it s these people playing at work and that s definitely not what we re used to seeing. If you look at the investment community, they re definitely putting a lot of money behind companies that are reaching out to gamers, because they see the value in that. Beyond that I think that there s so many things, in online and offline. The biggest thing is that companies are looking to reach audiences while they are deeply engaged, whether it be video, games…. I was just flying on Virgin America. They have advertisements behind the seat panels. There are a lot of things like that that are really changing the marketplace. What keeps me up at night is this tremendous opportunity within the market, and how we are going to reach out to everybody and show them the power of the games and the consumers out there and just helping everybody see the potential of this new medium.

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