Online Games Find Success in a Recession

Even as the economy takes a tumble, the popularity of online games is on the rise. Online game properties continue to see positive growth as Americans turn to ad-supported games as a form of affordable escapism.

Nearly 86-million Americans visited online game sites in December 2008, a 27 percent increase over the previous year, reports comScore, Inc., a leader in measuring the digital world. While these numbers are astonishing on their own, comScore also reports that the total time spent playing online games increased by 42 percent.

This means more people are playing online games and they’re playing for much longer periods of time. In fact, a survey conducted by Slingo Inc., a thought-leader in the casual games industry, reveals that nearly half of all visitors to the Slingo.com portal play casual games seven days per week.

What does this mean for advertisers? In spite of the recession, online game sites are among the stickiest entertainment sites on the Web. By tapping into this highly engaged audience, advertisers can connect with consumers more easily than in other advertising platforms where the message is often tuned out.

Affordable, Escapist Fun

So why are online games more appealing than ever during an economic downturn? In part, it’s because many people enjoy online games as an escape from the pressures they may experience at work or in the home.

“By concentrating and focusing on the game, a person can take a ‘mental vacation’ from whatever it is at the moment that is causing stress in his or her life,” says Dr. Carl Arinoldo, a stress and relaxation psychologist, in an interview with the Long Island Exchange. “And, given the engrossing quality of these games, the concentration and focusing are quite easy to accomplish and stick with!” Despite the influx of bad economic news, online games continue to serve as digital stress busters.

In addition, as people feel the financial crunch and being to tighten their purse strings, the entertainment budget is among the first things to go. “Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives,” said Edward Hunter, comScore director of gaming solutions, regarding the usage of free online game sites. Since most ad-supported online games are free to play, people can have guilt-free fun in the comfort of their own homes.

Economic Bright-Spot

While the economic picture for most industries is grim leading into 2009, the outlook is bright for the online gaming industry which continues to benefit from growth in its display advertising business model. More than 8.6-billion display ads were placed on online game portals in November 2008, reports comScore, for a 29 percent increase over the previous year. Combined with the surge in the number of people visiting online gaming sites and the increased time spent playing online games, this has resulted in a 30 percent increase in the number of unique display ad exposures.

While the average person’s frequency of exposure to display ads remained constant, the number of display ads per page view dropped by 17 percent versus the previous year. This means that visitors to online game sites were exposed to approximately the same number of ads as before, but there was less ad clutter so each message had greater impact.

Additionally, the model of combining video ad content with casual game content promises to leverage the true value of casual games: user engagement. People are more willing to watch video ads that run before a game starts or between game levels, as opposed to video ads that appear in front of other video content. With online games, the payoff is big enough that viewers are willing to wait and, more importantly, to watch. In fact, according to leading online video advertising network SpotXchange, in February 2008, over 90% of the InGame video advertisements they served were watched in full. This level of engagement means the effectiveness of the video ad goes through the roof.

As greater numbers of people flock to their favorite ad-supported online games for budget-friendly entertainment, more advertisers are seeking the opportunity to reach this highly engaged audience. The increased revenue from display and video ads enables the online game portals to reduce ad clutter, providing a better visitor experience and offering advertisers a greater ROI. In the end, it’s a win-win-win situation for the advertisers, the game players, and the online game portals.

About Slingo

This article is provided by Slingo.com, a leading online destination for people who love to play games, win prizes and have fun. In fact, 1 out of every 20 people in the U.S. has played Slingo online. The Slingo website offers free, original online games, downloadable games, and contests with cash prizes, as well as a social-networking community for game players. For more information, please visit http://www.slingo.com/.