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A growing number of companies are beginning to swear by the results of advergaming: interactive games on websites that site visitors can play. Whether they're simple sweepstakes, more involved knowledge-based quizzes, or full-blown video contests designed to engage discriminating teenage boys, online advergaming is coming into its own as a marketing genre.
The growing variety of contests combine website "stickiness" with valuable data about the visitors who care enough about the brand and what it has to offer to register personal information so they can play a game. "In the competition among brands now, you can't afford to do things that you can't measure," says Josh Linkner, president of EPrize Inc., a Farmington Hills, Michigan-based company that creates online games for brand marketers. "What we do is driven to produce measurable results right away. And it establishes a direct line of communications with the consumer, versus [advertising] media, which remains between the brand and the consumer."
Linkner puts the whole web-contest market right now at about US$ 200 million a year in revenues – and rising quickly. "Most of the sweepstakes and contest industry now is still offline, but our business is growing rapidly," he says.
Leviathan Games Inc., a Seattle-based creator of video-game-type contests online, has seen sales grow by 250 percent in the last two years, says co-founder Wyeth Ridgway. "Obviously you're not going to meet your entire audience with an online computer game, but you're meeting a very targeted portion, and one that, on a product-by-product basis, could be the exact people you're most interested in meeting," Ridgway says. "Our forecast for 'advergames' is that it'll be part of every advertising campaign that large companies do at some point in the future. It won't be an end-all, but an element at least."
A number of brand marketers are willing to testify why. For instance, the Portland, Oregon-based manufacturer of meatless burgers, Gardenburger Authentic Food Co., recently staged an online sweepstakes in which the prize was a hybrid version of the Honda Civic, which combines electric and internal-combustion powertrains to provide much higher mileage than conventional vehicles.
"The sweepstakes was a good combination of being authentic to the mission of the company and our message but was interesting and exciting enough to get people enthused about checking it out," says Wendy Preiser, Gardenburger's vice president of marketing. "It was a good investment for getting the word out in a way that was credible and authentic. People aren't putting a lot of faith in what they see in a TV ad, so we have to be a little more creative and in tune with people to reach them with our message."
Gardenburger, independent though publicly held, is in a pitched competitive battle for the vegetarian-dieting crowd with two deep-pocketed giants: Morningstar Farms Inc., which recently was acquired by Kellogg Company, and Boca Burger, which was picked up by Kraft Foods. "We have to try to squeeze that extra nickel out of every quarter of marketing spending," Preiser explains, "and web-based options are a good, cost-efficient way for us to get the word out."
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But while Gardenburger operated a website all along, "We hadn't really exploited it to try to reach out to consumers," Preiser concedes. The company had begun dabbling in online contests last year (2002) with a "karma test," which helped players assess "where their karma is at." Gardenburger promoted the car giveaway through the karma test, promising to donate food to an anti-hunger organization each time someone played, and advertised the Civic sweepstakes on "issues-partners" sites such as that of the Union of Concerned Scientists. Media such as Vegetarian Times magazine also helped pass the word about the contest.
But does it work? By the time Gardenburger gave away the Civic in September, the contest had drawn more than 100,000 entries from unique visitors. About 40,000 of those people opted for the opportunity to sign up for new-product notices and other communiqués from Gardenburger, which Preiser calls "A very good number. These are high-quality consumers. They're 40,000 high-potential consumers with whom you can build a relationship. That's fantastic. They also tend to be thought-leader consumers as well."
Luxury-watch maker Maurice Lacroix USA doesn't sell its products online, but it is using games through the websites of its business partners to generate some word-of-mouth on the Internet anyway. For example, it tied into the movie release of Time Machine last year [2002] with the DreamWorks studio by giving visitors to the DreamWorks website a chance to register to win a trip to "where time begins": the Maurice Lacroix watch factory in Switzerland. The watch company also tied into Time Machine with theater-chain websites. And now Maurice Lacroix plans to employ a similar approach to take advantage of its 2003 sponsorship of the Indy Racing League. Besides exposing its brand, Maurice Lacroix is gaining background and contact information about thousands of individuals who are interested in it.
"We've only been in the US for about eight years as a brand, and our advertising and marketing budgets are much smaller than those of our competitors," says Carol Levey, senior director of marketing for Maurice Lacroix USA, based in Encino, California. "So we're always trying to do things a little differently. Online gaming is succeeding beyond what we expected."
The roster of companies that are relying on games to generate marketing buzz, or recently have done so, includes Nokia, which fielded an online curling game as part of its sponsorship of the Canadian Men's Curling Championship; Miller Brewing, which offers a Virtual Racing League and Miller Lite Digital Football online; Fox Sports, with a World Series game in which visitors tried to "hit" a virtual ball out of a virtual stadium; a video game on Honda's website that allows players to choose a Honda and then race around city streets that are plastered with Honda logos; and a coalition of major fast-food restaurant chains and packaged-food companies, including McDonald's and Kraft, seeks to help curb childhood obesity by offering kids online games that teach nutritional concepts at a new site called Kidnetic.com.
Companies such as EPrize and Sunnyvale, California-based Unleashed Media are exploiting marketers' interest in relatively simple contests that reach online consumers cost-effectively, such as the Gardenburger and Maurice Lacroix promotions. EPrize was ranked the fastest-growing promotions agency for the past two years by Promo magazine. EPrize's revenues were about US$ 200,000 in its first year, and this year's revenues should finish in the range of US$ 4 million to US$ 5 million, Linkner says.
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Brands are finding more and more ways to tweak otherwise simple contests and create more interest in them. Kotex, for example, has used an ingenious online game to overcome a natural lack of interest by teenage girls in communicating with the Kimberly-Clark Corporation hygiene brand. Girls can not only win a prize instantly by trying to collect pieces of virtual clothes, but they can also win a grand prize if they manage to become the only person to collect all of the pieces. About 11 percent of girls playing this game return more than 10 times; each visit strengthens their relationship with the Kotex brand.
Advergaming is also a great opportunity for integrated marketing efforts. A recent sweepstakes for Hanes, for example, promoted the apparel company's new "tagless" t-shirt by using a tag as the virtual game piece: "Lifting" it with the mouse revealed the visitor's prize.
New synergies are being created daily as interactive-relationship marketing helps drive consumers beyond the Internet. For example, Healthy Choice has used its online games to drive people to supermarkets to actually buy its products, by offering the chance for customers to print "mystery coupons" off the Internet, which can be redeemed in-store for prizes ranging from 50 cents off to a US$ 1 million jackpot.
EPrize's key is the institutional memory it has built through the creation of more than 500 online games and other promotions. It can basically take a modular approach to putting together new promotions, reusing lines and blocks of operating code that it previously has perfected and combining and customizing its electronic capabilities into packages suited for each client. Similarly, EPrize has put together a comprehensive understanding of the US's state-by-state laws concerning sweepstakes and of the tight electronic security that clients demand for all of the information that is generated in a campaign, from customer data to the encryption that ensures cheats don't win the contest.
"It's like the way a legal document is written," Linkner explains. "It usually includes a bunch of different paragraphs that are precise and powerful but that are boilerplate, and don't change from application to application. That's how our code is: We keep reusing it, and so we don't have to draft it anew each time. It's sort of like using a wizard template when you're on a Microsoft program."
But while it may cost a brand marketer only a few thousand dollars to develop, launch and execute a simple online sweepstakes, more companies are anteing up to invest the six-figure sums that are required to field a full-blown, highly branded video game online. Such games weren't even a possibility until the very recent advance of Internet-transmission technology, to the point where even a dial-up modem can carry enough digital robustness to accommodate a rich gaming environment.
"And when you're allowing someone to play, for free, a game that they would expect to pay for, you'll find that they're very responsive to providing you email addresses and other registration information," says Leviathan's Ridgway. Not only that, but the several minutes of involvement by a consumer with a branded video game yields a much stronger interaction with the brand than, say, a 30-second TV ad, he says.
Leviathan's game for Fox Sports in 2001 used telemetry data transmitted by radio waves from actual pitches in the Series and allowed visitors to try to connect with virtual versions of the same balls. For Korean carmaker Hyundai, Leviathan created a road-rally game online to promote its new Tiberion model. Visitors can play only part of the game before they're asked to register so they can finish the rally. "It's a great way to hook the user," he says, "because they see what they're getting before you ask them to provide any information."
The Chrysler Group has become a big believer in the value of online games as promotional devices, fielding a variety of what Jeep division vice president Jeff Bell calls "thin" games and "fat" games. The "thin" games have included Get Up & Go, which appears on Chrysler's website asking 21 probing questions about road-trip behavior and then presenting a profile of the visitor's approach to car traveling. In just the first month, Get Up & Go nabbed 40,000 registrants, 17,000 of whom asked for additional product information. Another thin game being piloted by Jeep includes Disc Dogger, which lets a player "throw" a Frisbee so that a terrier can jump up and catch it in his jaws – against a landscape heavily populated with Jeep vehicles.
The "fat" motion-oriented video games include a trail-blazing contest that helped launch the new Jeep Rubicon SUV and a Dodge-branded game in which the player "drives" a Zamboni ice-making machine on a hockey rink. Of the first 550 Rubicons sold, for which customers shelled out payment even before the vehicles were produced, a remarkable 85 matched up as individuals who had played the online game. "All of our games so far have been like this," Bell says. "They've all met or exceeded expectations."
Although online advertising has taken some hits in the past as being annoying and ineffective, it looks as though advergaming may be just what marketers were looking for. [24-Feb-2003]
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Dale Buss is a journalist and editorial consultant in Rochester Hills, Michigan. He's a former reporter for The Wall Street Journal and a former contributing editor of Brand Marketing.
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Nov 24, 2003
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Food and beverage brands deal with the latest trend to hit the industry: the low-carb frenzy. Is it time to throw your entire product line down the trash disposal over a trend?
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Oct 20, 2003
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English roses grown in Kenya, American skis built in China, Italian shoes made in Romania? Home brands insist offshore production is the only route for survival.
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Samsung Shows its Strength -- Robin Rusch
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Five years ago Samsung Electronics was a cheap Korean brand; today it’s a quality name that climbs to number 25 in Interbrand and BusinessWeek’s top global brands survey.
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Jun 30, 2003
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Delivering Global Brands -- Edwin Colyer
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Global express distribution operators, like TNT and Exel, are consolidating supply chains to better service and win contracts with brands like Deutsche Post, FedEx and UPS.
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Apr 7, 2003
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Happily Ever After? -- Dale Buss
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Looking to ally forces in a co-branding relationship? Match-making is a skill fraught with pitfalls, but done right it can expand market and grow opportunities.
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The Brands We Love to Hate -- David Liss
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