Digi-Capital reviews the game industry in 2012
Digi-Capital, an international investment firm, has released a new review of the game industry, which may help shed some insight on the growing popularity surrounding mobile gaming. The review offers an expansive look at the industry, documenting its breadth and the activity of the domestic and international gaming markets. Mobile gaming is highlighted in the review, as are social gaming investments and the trends that are emerging to affect the future of the game industry as a whole.
Game industry breaks previous M&A records
Digi-Capital found that the game industry beat out all of its M&A records that had been set in the past in 2012. The review shows that the industry accounted for more than $4 billion in total M&A for the year, an 18% increase in transactional value from what the industry had been in 2011. The game industry did see fewer blockbuster releases in 2012, but the few blockbuster titles that were released performed exceedingly well in the international market.
Investments for 2012 total $835 million
The industry saw more than $835 million in investments throughout 2012, 31% of which found its way to the mobile gaming sector. Approximately 35% of these investments went toward the gamification of websites and other services, making them more attractive to those using PCs and mobile devices. Though investments were significantly lower than they had been in 2011, they still managed to give the game industry a boost through a tumultuous year. This boost proved especially beneficial for the mobile gaming sector.
Social and mobile gaming expected to pick up steam in coming years
The review from Digi-Capital suggests that social and mobile games are likely to continue gaining momentum in the coming years. Social games have only recently begun to come into their own, thus account for modest transaction value. The review shows that the transaction value of mobile games continues to grow, but the MMO (Massively Multiplayer Online) game sector is likely to dwarf both social and mobile gaming in terms of M&A.
Study shows advertisers are shifting focus on mobile marketing
A new study from the Association of National Advertisers and MediaVest, a leading media specialist agency, shows that the majority of the marketing industry is beginning to focus more heavily on the mobile space. Mobile marketing is becoming a very important aspect of advertising, due to the large number of mobile consumers there are in any given market. The study draws upon information gathered from 68 client-side marketers, many of whom are members of the Association of National Advertisers, during the fourth quarter of 2012.
Majority of advertisers working to engage mobile consumers
According to the study, 85% of advertising firms plan to significantly increase their mobile budgets in the very near future. These firms are expected to focus more intently on engaging consumers through various mobile marketing initiatives. Many of the brands that these firm represent have expressed interest in such mobile marketing initiatives, leading advertisers to develop strategies that will take advantage of the growing number of mobile consumers.
Location-based marketing gains momentum
Location-based marketing, or geomarketing, is expected to be one of the major priorities that advertisers have in the future. Location-based marketing is becoming increasingly important for local brands that do not have access to the same resources that large companies do. Advertisers using location-based services, especially those associated with social media networks, can develop hyper-localized marketing campaigns that have, in the past, proven very successful among their targeted demographic.
Some marketers worried over the feasibility of mobile marketing
The study shows that 42% of advertisers are have concerns regarding mobile metrics and tracking system. Without adequate metrics in place, being able to fashion a comprehensive marketing campaign is a significantly more difficult task. These marketers have also cited their inability to prove any feasible return on investment as a major roadblock toward their adoption of mobile marketing. Nonetheless, the vast majority of advertisers are convinced over the potential prospects of mobile marketing and what gains they may see through its use.
