Gm and welcome to the lobby.

Is gaming the new media landscape? The rise of Mom gamers. The rollercoaster that is Activision Blizzard. Kick makes… positive news? And more.

Before we dive in: Back to back weeks with big announcements for the Private Lobby team! Join us in welcoming former GameHers Best Intern award winner: Trinity Nguyen!

Trinity is a former social media & strategy intern that worked with Zach and Justin at OpTic Gaming and a current student at USC majoring in Psychology.

Ok, grab your coffee, ready up, and let’s drop in 🪂
Here’s what we have for you today:

• Gaming: The new media landscape and the opportunity for brands 📺

• The rise of family gaming and the “Mom gamer” 👪

• ATVI movin’ and shakin’ with layoffs, revenues, and a key hire 📉📈

• Hot Pockets goes grassroots with weekly tournament series 🍕  

• Kick takes steps forward toward democratizing livestreaming 🚶

• Is TSM returning to Call of Duty? after comments made by org 🎮 

📺 Gaming: The new media landscape

Amika, the Brooklyn-based hair care brand, has expanded into gaming with the launch of "Amikaverse" on Roblox. The immersive virtual experience allows players to customize their avatars with unique hairstyles and accessories, engage in Amika-themed mini-games, and socialize with other Amikaverse players.

Amika's entry into Roblox follows the successful launch of worlds from brands such as Walmart, Alo Yoga, and Crocs. Immersive in-game experiences are a huge opportunity that brands are beginning to take advantage of but it’s not the only opportunity in gaming for advertisers.
via Inc., January 2024

⛏️ Let’s Dig Deeper

Dentsu in partnership with Lumen Research created this study that measured attention across livestreaming on Twitch and intrinsic in-game advertising with Anzu to help brands better understand how they can reach consumers across these different gaming environments.

The study found that ads encountered in gaming spaces, such as streaming and in-game, drove significantly more attention than other ad platforms:

• Viewability: Gaming is 99% viewable, higher than dentsu norms

• Attention: Gaming has an APM (attentive seconds per 1,000 impressions) of 6736, higher than dentsu norms

• Cost: Gaming aCPM (attentive cost per 1,000 impressions) of $3.38, more efficient than dentsu norms

• Brand recall: Gaming recall of 21% is highly variable across gaming environments, and lower than dentsu norms

All data and information via Dentsu, January 2024

🏅 Finding Gold

Dentsu’s study found that livestreaming and in-game ads both offer unique advantages and opportunities for advertisers and brands:

• Livestreaming: Key advantage — brand recall. Livestream ads generate an impressive average of 57% correct brand recall, compared to a Dentsu norm of 38% across media environments. When considering brand choice uplift, livestream ads provided an average increase of 17%, compared to Dentsu norms of 7.25%.

• Intrinsic In-Game: Dentsu’s research found that in-game ads captivated attention for an average of 3,442 seconds, outperforming traditional online ads lasting 1,416 seconds. Online display and social media ads ensured high visibility on screen, with Anzu hitting 99%, above the usual benchmark of 87%.

All data and information via Dentsu, January 2024

👀 Our POV

The Entertainment Software Association put out a study in 2022 that found that over 65% of Americans, or 215 Million people, are gamers.

With a large portion of the population playing video games and that number likely rising year to year, the opportunity for advertisers to reach gamers while they’re deeply immersed and engaged in these digital spaces is immense.

Gaming will soon be a primary channel and key pillar of all major brands strategies. Not all brands should be making Roblox worlds but livestreaming, intrinsic in-game, and strategic partnerships with game developers, publishers, and content, gaming, and esports organizations are ripe with opportunity.

- Zach Eller (Private Lobby)

👪 The rise of family gaming

A recent study by Savanta and WildBrain revealed a shift in gaming & entertainment consumption patterns amongst families, highlighting the rise of "mom gamers". The study suggests that these activities are not just about entertainment but also serve as a bonding and relaxation mechanism for families. This points towards a global trend of the "Family Mediaverse", where content & gaming intersect to create the new family entertainment experience.

🔑 Key Findings

• Mom Gamers: The study identifies an emerging trend of mothers engaging in gaming activities with their children, especially those aged 6 to 8. Roughly three-quarters of parents in the US and UK increasingly game and watch TV with their children of all ages, as a way to “relax, bond and spend time with their children”.

• Co-Viewing: The practice of families gathering to watch programming together on connected and smart TVs remains strong, with a significant majority of families engaging in co-viewing activities daily, highlighting the continued value of shared entertainment.

• The Family Mediaverse: Families are seeking togetherness through the intersection of video and gaming. This shift signals a pivotal trend for the future of entertainment and advertising.

All data and information via Forbes, Savanta, and WildBrain, February 2024

👀 Our POV

We’ve been seeing a rise in “mom gamers” and the rising trend of socialization via gaming in a big way since the pandemic; however, the concept of the “Family Mediaverse” is a shift further towards the mainstream.

The nostalgic family game night is evolving with the perception of video games changing. No longer do parents see video games as toxic time wasters but educational, engaging, and communal experiences.

As families increasingly seek shared experiences in both gaming and video content, the opportunity for advertisers and brands to create integrated, cross-platform strategies is immense. This not only challenges us to rethink traditional audience targeting but also to innovate in how we create and deliver content that resonates across generations.

- Zach Eller (Private Lobby)

📉📈 ATVI movin’ & shakin’

It’s been a turbulent week for Activision Blizzard. We are all well aware of their acquisition by Microsoft/Xbox back in October, as it shook the industry in such a seismic manner. However, amidst plenty of other layoffs and squeezes to begin the year, ATVI hit headlines as 1,900 folks were let go across Xbox and the Activision Blizzard workforce. This included 60 of the 72 staff responsible for ATVI esports operations, or a staggering 83% reduction in headcount.

Just days later, they announced Johanna Faries was made the President of Blizzard Entertainment. Her new role begins this week (February 5) after serving as commissioner of Call of Duty esports since 2018. Known for being community-first, compassionate, and monumental in positive progress for the Call of Duty League, most of the sentiment around her appointment was extremely supportive.

Lastly, on a bittersweet note, financial results surrounding the completion of the acquisition were reported to the tune of a 49% increase in YoY Xbox revenues. Introducing Activision, Blizzard and King brought thousands of new players, a remarkably solid roster of IP, and hundreds of new games into the house that P3 has built.

👀 Our POV

After the announcement that the Overwatch League was shuttering, only to rise as the Overwatch Championship Series with ESL Faceit Group, the release of so many internal team members dedicated to esports isn’t a huge surprise. Does it still sting? Of course. The silver lining: A lot of the most talented folks in esport operations are now free agents- so for those hiring? Make sure to give them a look.

Could this be the final year of the Call of Duty League as we know it? Yes. Do we have any way of knowing that for sure? No. Though with Call of Duty’s Challenger scene and the Overwatch esports infrastructure exchanging hands, it’s hard to ignore the signs.

NOTE: This does not mean Call of Duty esports are going away. We want to make that very clear. The Call of Duty League is technically the third iteration of a professional scene for the franchise.
 
- Brandon Painter (Private Lobby)

🍕 Hot Pockets goes grassroots

Hot Pockets recently announced the Pockets League. The community esports program from Hot Pockets features weekly gaming tournaments over $100,000 in prizing available throughout 2024.

Each week Hot Pockets will host an event with a $1,000 prize pool with occiasional community "Heater" tournaments with prize pools over $3,000.

Partnering with Tournament Organizers familiar to each game, Hot Pockets will host tournaments for Brawlhalla, Call of Duty (MW3 & Warzone), Guilty Gear, League Of Legends, Rocket League, Street Fighter, and VALORANT.

Entering is free & easy! All events are hosted on the popular tournament platform Challonge. Their first event kicked off February 5th on Rocket League, hosting over 225 different players.

⚡ Quick Take

Hot Pockets gaming strategy is kicking into second gear. The gamer favorite snack brand has been doing great work connecting with the gaming community, through their partnership with NRG, and will now take it to the next level with their grassroots tournament circuit.

I think this is a perfect activation for a demographic that is perfect for Hot Pockets. Most hardcore gamers are either: A) using food delivery apps, or B) heating up food from their freezer when they’re hungry. Giving gamers a chance to compete for FREE with their branding attached to it just makes sense.

If Hot Pockets is able to generate awareness and traction for the Pockets League, there’s a ton of potential for this to become a staple of gaming culture.

- Justin Palacios (Private Lobby)

🚶 Kick takes steps forward

Kick first announced their Creator Incentive Program (KCIP) back in September when they were pressed by the industry to reveal a vision for maintaining such lucrative avenues for streamers who have chosen Kick over gaming darling Twitch or even Google’s YouTube. In short, multi million-dollar deals to attract big names for awareness and an impressive 95/5 sub rev split with creators had proven their point… but what was the longer game? Getting paid an hourly wage for your work. 

More specifically, “you're also compensated for the dedication and effort you invest in curating, producing, and expanding your content. Simply put, Kick values and rewards both your creative prowess and your entrepreneurial spirit.”

After three waves of testing with creators cultivating audiences as large as 1500 CCV (average viewers at once) and as little as 10 CCV, spanning high octane gamers, IRL entertainers, and artists, the team has settled on a structure they are confident in.

As of 1/31/24, applications for the KCIP are open and the requirements for consideration are public. It’s simple:

• Reach a total of 25 subscribers in the last 30 days

  • Note: gifted subs not included

• Reach an average of 100 viewers in the last 30 days

• Stream for a total of 15 days in the last 30 days

• Stream for a total of 50 hours in the last 30 days

• Have 500 unique chatters in the last 30 days

• Reach a total of 1500 followers Share 3 VODs in the last 30 days

These metrics are subject to modification as the program is continuously being refined, and Kick is also careful to note these are means of consideration meaning not guaranteed approval. Those who have been a part of the beta are particularly pumped:

👀 Our POV

Kick is still the spicy redheaded step-child of the streaming world. As I have mentioned for a while now, it isn’t going away any time soon, so it is certainly something marketers should be paying attention to at this stage.

If the Adin Ross/21 Savage/Playboi Carti discourse over the last few days is any reminder, the space is still a major question mark for brand safety.

If you are a dev/publisher who is looking to find creators willing to share first looks and raise additional awareness around your title? Kick might be a sandbox to play in.

If you are a brand who still hasn’t been able to find a comfortable capacity for something like Fortnite to be a part of your marketing mix, keep observing.

Purely from an innovation and industry standpoint? The KCIP is extremely interesting. Eddie & co have done the due diligence to establish requirements that they feel could maintain the integrity of a program like this. In a space where we constantly witness a power struggle between talent and the platforms or IP they build themselves on, this tips the scale in their favor.

Will it continue this trajectory? Only time (and money) will tell.
 
- Brandon Painter (Private Lobby)

🎮 Is TSM returning to Call of Duty?

With TSM dropping multiple teams and laying off a large majority of its staff, fans of the org have been questioning the future and what they can expect. TSM took to Reddit to address concerns and to give a look into their future. 👀

TSM fielded their first team in 2011 for League of Legends. The org would go on to bring in teams for Hearthstone, Counter-Strike: Global Offensive, Super Smash Bros., PlayerUnknown's Battlegrounds, Rainbow Six: Siege Pro, Fortnite, Apex Legends, and VALORANT.

TSM had a short stint in Call of Duty during 2016, just keeping their roster for 5 months after lackluster placements.

👀 Our POV

Although TSM’s previous venture into COD wasn’t the best, they’re right in that the COD community is one of the most dedicated and active fanbases in esports.

With the right pickups, TSM could take advantage of this active fanbase and bring in their FPS audience which is usually watching games like VALORANT & Apex Legends into the COD scene - helping the esport grow. “A rising tide lifts all boats” 🚢 

With the CDL currently franchised behind a multiple million dollar franchise fee, I could see TSM getting into COD by either partnering with a current organization (Vegas Legion or LA Guerrillas!) and operating the team - similar to how Misfits & Heretics are currently partnered for the Florida team. Or TSM could be waiting for the CDL to end in the next few years and jump into the COD scene then, hoping that Call Of Duty will go down the same path as Overwatch, allowing more organizations to get involved without franchise fees.
 
- Justin Palacios (Private Lobby)

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