Whether you agree with it or not, big data is everywhere. It’s the controversial hidden genie in your devices that predicts what you need before you realize you need it.
In scientific terms, targeted big data is the collection of consumer behavior. Tech companies collect this information, then analyze it and sell the results to other businesses. Those businesses use the data gathered to drive their decisions and new products.
One of the biggest industries being disrupted (in a good way) by big data is the gaming world. The companies behind gamer technology are collecting and analyzing information to see how they can reach an even greater interconnected network.
Right now, the gaming industry is worth nearly $200 billion, and it’s growing fast. And with the increase in big data and targeted marketing, there’s a seemingly endless pie for every business to tap into with ads.
1. Games are Going “Free,” But Are They Really?
Over the past few years, data has shown a trend that consumers want free stuff. It’s so easy now to download apps at no cost. So why would any customer want to buy Company X’s product for two dollars when they can get something similar for free?
It’s all about the deal and how you market it.
So, many gaming companies are giving the consumer what they want and finding strategic methods to make money while they do it.
It’s so common that it’s expected that when you download a free game, you’re going to have ads. Those ads are bought by companies, so the game manufacturer makes a quick buck there.
Then, if a user buys or downloads a product off of the ad, the manufacturer gets a kickback there, as well.
Of course, if the user doesn’t want to see ads, they can upgrade and go ad-free—for a price. They can also step up their game options and pay for the premium version.
It’s a strategy that has worked so well, gaming companies don’t mind giving away their software. They’re still raking in the big bucks, as long as they have a solid product.
2. Games are the Proverbial Genie in Your Smart Device
Downloading a game for free is the perfect way to let Big Data track your consumer behavior patterns.
It’s not illegal because you likely accepted the fine print that gave the company permission.
Are You Being Followed?
You know that tiny box that pops up before you get to play the game? It says that you agree to the terms and conditions, and it could include permissions to track your phone’s behavior.
Newer app developers have to include a section that lets you know they’re tracking you and requests your permission. The caveat is that you can’t play the game if you don’t agree. So, depending on how badly you want to use the app, you’ll agree to whatever their terms are, and they’ll track your data.
The more in demand the game is, the more money advertisers are willing to give the game’s developers to market their software. It opens the door up to a vast array of big data collection.
3. Games Are Going Personal
Throughout the past decade, consumers have gotten used to (and are now expecting) personalized service. They know if they go to a website once, when they go back, their information will be remembered.
They agree to the site’s request to collect cookies, and their experience is then targeted to their behavior.
In the gaming industry, this type of one-to-one marketing is a lucrative field. Because gamers typically stay on their devices for long periods, the data that is collected is a gold mine.
Marketers use that information to create targeted marketing messages. Instead of wasting money on ads that only reach part of their ideal audience, they can design meaningful interactions.
Consumers appreciate personalization. Since the message is on a software app they trust, they’re more likely to greet the ad with interest rather than skepticism.
If they see something that they like, they’ll click on the ad to see more information, then buy the product.
Successful business is all about making the most profit with the least expense, and the gaming industry is mastering that in spades.
By integrating big data and marketing with each game release, companies are increasing their network of users, targeting ads, and making big bucks. The industry is already worth billions of dollars, and new gamers-in-the-making are born every day.