Casual Gaming Advertising 1

Game On
Engaging the Ever-Growing
Casual Gaming Audience with
Rewarded Video Ads
 Casual Gaming Advertising 2

Contents
3 Executive Summary

4 Introduction
4 The game has changed
6 The gamers have changed
8 Gaming advertising

10 Casual Gaming Overview

10 What is casual gaming?
11 Who are casual gamers, and why do they play?
14 Casual gaming advertising and ad types

15 The Rewarded Video Opportunity

15 What are rewarded video ads?
16 How effective are rewarded video ads?
18 The KPIs
19 Targeting, measurement, and verification

21 Summary
21 Key learnings
22 Looking into the future

23 About smartclip
23 About RTL AdAlliance

24 Authors

24 Contacts

25 Contributors

26 Terminology Guide

27 References
 Casual Gaming Advertising 3

Executive Summary of this holistic product offering. By curating casual

gaming inventory for each advertiser — picking the
apps that adhere to each brand’s individual quality
With an estimated 3.2 billion video gamers worldwide , 1
criteria — and guaranteeing high-quality rewarded
a figure that continues to grow year-on-year, gaming video products, we are able to add value across the
has evolved into an important scalable opportunity entire process, ensuring everyone can fully realise the
for advertisers to reach a huge audience of engaged potential casual gaming presents.
viewers.
With gaming inventory about to become more
Casual games — games that do not require significant accessible than ever and myriad advertising
time or expense to enjoy, such as Candy Crush Saga, opportunities available, we believe that now is
Angry Birds, and Solitaire — have become a well- the time for all advertisers, no matter what sector
established form of entertainment. Easy to access via they are in, to shed any outdated stereotypes or
mobile or desktop devices, they are being embraced preconceived notions about gaming. It is no longer
by a broad spectrum of people from different only about teenagers playing complex games on
generations and with different interests, backgrounds, expensive consoles; it is about you and me, your
and incomes. Dipping into games while travelling to friends, your parents, and your colleagues, all playing
work or relaxing in the evening is now a part of many simple, straightforward games for relaxation and
people’s daily lives. And these potential customers entertainment on readily available devices. And it is a
are reachable through accessible ad formats such as powerful, brand-safe, and effective way to reach your
full-screen, unscrollable rewarded video, which delivers target demographic.
value exchanges that result in high engagement,
impressive KPIs, and positive brand associations. So whether you have already reached an advanced
level in gaming advertising or have yet to cross the
Already delivering outstanding results for a range of start line, we encourage you to join us in maximising
advertisers, casual gaming reaches a diverse audience, opportunities across this vibrant and diverse
offering high-quality, brand-safe environments ecosystem.
alongside effective solutions for targeting,
measurement, and reporting. And the outlook is
bright — the casual gaming audience continues to
grow2, new targeting solutions are evolving in response
to changes to identity-based tracking, and new
technologies such as 5G are improving connection
speeds and accessibility.

At smartclip, the adtech development unit of RTL

Group, we offer advanced monetisation solutions for
advertisers and publishers across Europe. Our smartx
ad server and supply-side platform (SSP) technology,
combined with our extensive expertise, provides
publishers with tools and solutions needed to serve
relevant ads to various target groups. Our media
sales division will also soon form a powerful new
cross-media international advertising sales unit — RTL
AdAlliance3 — in combination with RTL AdConnect
and G+J i|MS. This unit will offer advertisers simplified
access to a unique portfolio of brands across all forms
of media, and casual gaming inventory — particularly Thomas Servatius Dr Oliver Vesper
rewarded video — will continue to be an integral part Co-CEO, MD Platform & Technology, Co-CEO, MD Media & Operations,
smartclip Europe smartclip Europe
 Casual Gaming Advertising 4

Introduction
Misconception

In this in-depth report, featuring smartclip's own

data and exclusive insight from leading publishers “Isn’t it just teenagers on
and advertisers, alongside key industry facts
and figures, we will take a closer look at gaming
consoles in bedrooms?”
from an advertising perspective. With a particular
focus on casual gaming and the high-performing
rewarded video ad format, we explore the gaming Reality
environment, break down gamer demographics,
highlight opportunities, and address common gaming
misconceptions throughout, revealing how businesses
Gamers are no longer
of all shapes and sizes can leverage this exciting all headset-wearing
medium.
teenagers playing
on consoles in their
THE GAME HAS CHANGED
bedrooms — they are
Gaming has evolved into one of the world’s biggest
forms of entertainment, in terms of time spent, money
the teenagers and the
generated, and audience size — reaching a broad, parents, the students
engaged demographic across multiple platforms.4
and the teachers, the
And as people turned to games for entertainment,
distraction, sanctuary, and social connection during employees and the
the pandemic, the market grew even further. Globally, bosses, all enjoying
the total number of mobile game downloads was more
than 14.4 billion in Q1 2022 compared with 9.7 billion
gaming while going
in Q1 2019.5 In the mobile games segment in Europe about their daily routines.
alone, the number of users jumped from 168 million in
2019 to 201 million in 2021 and is forecasted to reach
221.5 million by 2027.6

There has never been more

attention on gaming than right
now. And for good reason.
Gaming provides a sense of
purpose, connection, and
interactivity unlike any other
entertainment medium.

Jordan Shlachter
Head of Research, Activision Blizzard Media
 Casual Gaming Advertising 5

The popularity and accessibility of gaming has been There is no question that gaming presents an
fuelled by the increasing omnipresence of mobile exciting prospect for advertisers — now and in the
devices (smartphones and tablets) in our lives. Mobile future — and to be successful, advertisers do not
devices are a key access point for gaming, particularly need the huge budgets or resources that some
casual gaming, and they have become central to our perceive as necessary. There are many accessible
day-to-day lives, with finance, shopping, food and opportunities beyond the more high-profile campaigns
drink, streaming, health and fitness, travel, and dating and partnerships, with gaming advertising offering
apps all contributing to our growing mobile-first habits. familiar ad formats and effective targeting and
When looking at time spent on smartphones in 10 key delivery solutions that are resulting in high-quality
markets, research showed that users spent an average KPIs for advertisers of all types and with all budgets.
of one third of their daily waking hours (4.8 hours) on For example, smartclip campaign data shows an
smartphones in 2021, which was 30% higher than the average 98% viewability for rewarded video ads.10 But
average time spent in 2019.7 for advertisers — and decision makers — to realise
the potential of the diverse and varied opportunities
In addition, trends and developments within the wider presented by this now mainstream channel, it is
gaming landscape point towards a healthy future for important to understand gaming, gamers, and
the entire sector as gaming becomes an increasingly gaming advertising and to leave behind outdated
established part of our culture: misconceptions and stereotypes.

✓ The fast, high-bandwidth capabilities of 5G and

improved hardware are ensuring mobile devices
deliver an ever-more advanced and connected
gaming experience.

✓ Companies such as Netflix, Apple, and Walt

Disney are entering the market with their own There’s no doubt mobile has
gaming offerings or increasing existing efforts.8 changed the game, quite literally,
✓ Existing gaming providers and hardware
when it comes to video games.
manufacturers are innovating their offerings, It has made gaming accessible
such as introducing cloud gaming services
to those who don’t own gaming
(for example, GeForce NOW by NVIDIA) or the
planned new smart TV app and streaming hardware, allowing more people
service from Microsoft Xbox. than ever before to play, interact,
✓ The growth in popularity of esports continues and connect. With mobile gaming,
apace, with the global esports audience reaching people have a gaming console in
532 million in 2022 — a year-on-year increase
of 8.7% — and predicted to reach 640 million in
their pockets and can play without
2025.9 the investment into additional
gaming tech and hardware,
✓ Advertisers are taking advantage of new
technologies and ad formats, such as the offering a low barrier to entry and
potential to embed their brands within games greater accessibility.
and metaverses.

Jordan Shlachter
Head of Research, Activision Blizzard Media
 Casual Gaming Advertising 6

T H E G A M E R S H AV E C H A N G E D

The stereotypical hardcore gamer now represents just The increasing diversification of the gaming audience
a small proportion of the overall gaming demographic.11 is further reflected when looking at how many games
Newzoo’s insights into gaming across different are skewed towards the different demographic
population segments (as summarised below) illustrate groups. In a list of ‘Top 1,000 games by consumer
how large and heterogeneous the audience has spend’16, more than half of the games were skewed
become. towards the Generation Z audience group in 2021.
But, as gaming becomes increasingly mainstream,
Generation Z (age 11–25): In this often hard-to-reach the share of games directed at Generation X/Baby
demographic, eight out of ten play video games. They Boomers is also on the rise; for example, 19% of the
spend an average of just over seven hours per week top-grossing games in the UK skewed towards these
playing games, with gaming taking up the largest older age groups in 2021, compared with 11% in 2019.
share (25%) of leisure time spent on entertainment.12

Millennials (age 26–41): 77% play video games, with

gaming representing the largest share of leisure time
spent on entertainment (21%). Millennials spend an
average of just under seven hours per week playing
games, with 84% citing unwinding as their main Misconception
motivation.13

Generation X (age 42–56): 60% play video games, “It’s too niche — our target
with gaming representing an 18% share of leisure customers don’t spend
time spent on entertainment, second only to
watching broadcast TV (24%). Generation X spend
their time or money on
an average of just over four hours per week playing gaming.”
games.14

Baby Boomers (age 57–66): 42% play video games,

Reality
and 53% are female — the highest share across all
generations. They spend an average of two-and-
a-half hours per week playing games, with gaming Gaming is no longer a
taking up 10% of leisure time spent on entertainment.
92% list unwinding as their top motivation to play.15
niche hobby requiring time,
dedication, and expensive
hardware or subscriptions.
A diverse variety of players
are accessing high-quality,
Gamers are not a singular subscription-free games
demographic but a highly when it suits them, with
diverse and complex the majority using the
audience. devices they carry with
Ari Brandt
them every day.
Global VP, ironSource Exchange
 Casual Gaming Advertising 7

With such a broad spread of people playing games Definitions of gamers can vary, and some gamers
and such a variety of devices available to play them will fall into more than one category, but it is possible
on, it is important for advertisers to understand the to identify four categories of gamers based on the
different gamer types and avoid any stereotyping. devices they use and the depth of their involvement.

FOUR TYPES OF GAMERS

Casual/Mobile Gamer Console Gamer

This gamer type, which is explored further later, This gamer type plays on a branded console specially
enjoys playing easy-to-access video games via designed for gaming, such as Sony’s PlayStation,
apps on mobile devices. They play regularly as a fun Nintendo’s Switch, or Microsoft’s Xbox. They play
diversion but with minimal commitment in terms of on their TV device using a game controller and
time spent or hardware/games purchased. play games specifically developed for that console.
Console gamers might also use handheld consoles
Popular games: with their own built-in display unit and controls.

✓ Candy Crush Saga Popular games:

✓ Angry Birds
✓ Wordle ✓ FIFA
✓ Temple Run ✓ NBA 2K
✓ Pokémon GO ✓ Forza Horizon
✓ GTA

Hardcore/PC Gamer Streamer/Competitor

This gamer type is very invested in gaming, from the This gamer type plays competitively, competing
time spent and hardware purchased to the skill levels against their gamer friends or professionally for
reached and game outcomes. Gaming is their core money as part of esports leagues. Their goal is to
form of entertainment, and they will often spend long be the best, and similar to a Hardcore/PC Gamer,
sessions on games, dedicating a lot of time and effort they are very committed to gaming, training regularly,
to learning difficult games in-depth so they can reach investing in hardware, and engaging with their fellow
the highest levels or complete the game. competitors in the gaming community.

Popular games: Popular games:

✓ Call of Duty ✓ FIFA

✓ Dota 2 ✓ Dota 2
✓ Minecraft ✓ Rocket League
✓ Fortnite
 Casual Gaming Advertising 8

GAMING ADVERTISING

Misconception
There is a diverse range of advertising opportunities
and formats available to reach the variety of gamer
types outlined above — from in-game and in-app
“Isn't gaming inventory
to display and merchandise — which can be mainly for other gaming
overwhelming to advertisers making their first foray
into gaming advertising. However, some of the key
developers to advertise
advantages of the casual gaming sector, where you their games?”
will find the ‘casual/mobile’ gamer type as defined
above, are that it reaches a mass audience and offers
video advertising formats that will be familiar to any
Reality
experienced online video marketer.

With such a range of gaming ad formats available, it is Advertisers from a wide

important for advertisers to understand these in order
to avoid confusion and maximise effectiveness of
range of industries are
campaigns. The IAB splits gaming ad types into three seeing results in the
categories, as detailed below.17
gaming space, not just
In the game developers advertising
In-game advertising opportunities, looking specifically games. Some of the
at how brands can directly influence gameplay
visuals/audio with their messaging or alter the gaming
largest advertising sources
experience through skins and sponsored content. for casual gaming are
industries such as CPG
Around the game (consumer packaged
The opportunities available to brands during the
gaming experience but not within the gameplay itself. goods), automotive,
Examples of this include in-app rewarded video,
telecomms, entertainment,
interstitials, and overlaid audio ads.
travel, and lifestyle and
Away from the game home. Furthermore, a
Opportunities within gaming that exist away from the
variety of advertisers from
gameplay experience itself. This includes streaming,
esports, influencer, and content marketing. a diverse range of sectors
are booking gaming
inventory as part of their
campaigns on the smartx
platform, including some
of the world’s largest
FMCG (fast-moving
consumer goods) brands.
 Casual Gaming Advertising 9

Although still considered a relatively new vertical by

some, gaming advertising has been growing rapidly
for many years. On the smartx platform, revenue from
gaming-only campaigns was 39% higher in the first
half of 2022 compared with the first half of 2021.18
There is also a perception that gaming advertising
is only used by developers to promote their games.
However, companies from a broad spectrum of
industries — such as FMCG19, automotive20, consumer
electronics, and entertainment — are now using
gaming advertising to reach their target audience,
proving that this idea is no longer valid.

+39%
Overall revenue growth of gaming-only
bookings on smartx platform

The overall revenue generated from gaming-only

campaigns booked on the smartx platform continues
to show significant growth, with revenue 39% higher
in January-June 2022 compared with the same period
in 2021.

Offering a diverse ‘leaned-in’ audience, high-quality

inventory, brand-safe environments, low barriers to
entry, and effective targeting opportunities, gaming
advertising is now on par performance-wise with
many other content mediums. Many advertisers are Gaming is the new
seeing results in reaching diverse audiences through
in-game mobile advertising — 74% state that they
prime time — 6 pm
have reached age-diverse audiences and 71% have
reached gender-diverse audiences.21
to 10 pm is the most
common time to
In the next section, we take a closer look at the casual
gaming sector — one of the most relevant gaming use gaming apps.22
types for advertising — further exploring what casual
gaming is, who casual gamers are, and the advertising
opportunities this significant market segment presents.
 Casual Gaming Advertising 10

Casual Gaming
Overview Misconception

“We don’t have the

W H AT I S C A S U A L G A M I N G ?
budget or resources to
Casual gaming has come a long way since Solitaire host a concert on Fortnite.”
launched for PCs in 1990. Riding the wave of
technological revolutions such as the introduction
of smartphones and the continued improvement
Reality
of handsets, desktops, apps, and connection
speeds, casual gaming has become accessible to all
demographics, establishing it as a key segment of the Gaming advertising is
wider gaming marketplace. It is where you will find
familiar household names, including mobile-based
not just reserved for
games such as Angry Birds and Candy Crush Saga, those with the budget
and desktop-based games such as Sudoku, Mahjong,
or resources for costly
and Farmerama. With a continuously growing
number of games spanning a wide range of genres AAA-game partnerships
including puzzles, riddles, racing, action, and arcade, — accessible video ad
casual games offer entertainment for all tastes and
preferences. formats with traditional
targeting and delivery
Simple and straightforward, casual games are
characterised by their easy gameplay, relatively solutions are resulting
low skill requirement, addictive nature, and minimal in high-quality KPIs for
buttons/controls. The games are targeted to a
mass-market audience, and they are subscription-
businesses of various
free and accessible on mobile phones, tablets, and types.
desktops. Requiring low commitment in terms of time
or expense, they are easy to dip in and out of for short
periods.

CASUAL GAMES DEFINITION

A mass-market video game that is fun and easy to play, requiring minimal time
commitment and designed to appeal to players of all ages and skill levels.
Casual games are characterised by their simple gameplay, highly visual nature,
few buttons/controls/rules, and easy accessibility via mobile devices or PCs.
 Casual Gaming Advertising 11

31% of internet users

in Europe are casual
gamers.23

WHO ARE CASUAL GAMERS, AND

W H Y D O T H E Y P L AY ?

As casual games are so readily available and designed entertainment while they go about their daily routines,
for a mass audience, the demographics of people but they do not play every day for multiple hours, invest
playing them are very diverse, spanning all ages, money in gaming consoles, or immerse themselves in
genders, and education and income levels. the wider world of gaming. The convenience and easy
access of casual games on mobile devices appeals
The audience data provided by emetriq, smartclip's to casual gamers, but their motivation to play is not
targeting partner, offers the opportunity to carry out a necessarily to defeat others or to play the biggest
broad analysis of gamer demographics, the results of or latest games. A survey of mobile game players
which underline the conclusions that have been drawn found that the main motivation to play was relaxation
in the previous chapters. (83%), closely followed by entertainment (67%) and a
distraction from serious issues (57%).25
As can be seen in the data below24, which refers to
casual gaming inventory on the smartx platform, and In fact, the link between casual games and relaxation
on the following pages, casual gaming reaches a has been highlighted through research looking at
diverse audience spanning various demographics. the impact of casual games on mood and stress.
A study looking at changes in electrical activity in
Casual gamers are commuters on trains or parents different parts of the brain when playing casual games
waiting for their children to finish school or an activity. indicated changes consistent with increased mood,
They are people looking to relax after work or to pass as well as heart rate variability changes that were
time while in a doctor’s waiting room or queuing consistent with autonomic nervous system relaxation
at a store. They regularly play games as a form of or decreased physical stress.26 27%

Age

8% 39% 29% 24%

16-19 20-39 40-59 60+
years old years old years old years old
 Casual Gaming Advertising 12

CASUAL GAMER DEFINITION

Anyone who plays video games with minimal commitment — they regularly
play games but do not play every day for multiple hours. They often play easy-
to-access games on mobile devices when they have some free time and are
looking for entertainment or distraction, or to relieve boredom, but they are not
invested in the game or immersed in the wider world of gaming.

Although there are many casual gamers, 65% of puzzle game apps attracting a wide age range.28 Their
people who play mobile games do not identify simple gameplay ensures casual games are accessible
as ‘gamers’ , possibly because of the low level of
27
to gamers of all levels of digital proficiency. This,
commitment or equipment required, and this could combined with the ever-increasing digital proficiency
explain why some still do not see gaming as a mass- across all age groups, means that the casual gaming
market medium. But ask anyone if they have played audience is highly diverse in terms of age groups and
a game on their smartphone recently and, with skill levels, and does not just include ‘digital natives’.
increasing frequency, the answer will most likely be
‘yes’. Gaming apps are among the most popular apps As the way we play games evolves as quickly as the
with smartphone users — 1 in 4 smartphone owners way we watch television, more and more of us are
play casual games each month, with casual and becoming casual gamers — playing our favourite
games wherever, whenever, and however we want.

Gender Education

34%
Female
61%
graduated from college/university

30%

66% Employment

87%
40%
Male

are employed
 Casual Gaming Advertising 13

Status Family

42%
are household budget managers
27%
are in a relationship/married

27%
22%
are main income earners
are single

10%

12%
have children aged 0-3 years

7%
are retired people
have children aged 4-6 years

Households 10%

63%
have children aged 7-14 years

live in households of 3+ people

C A S U A L G A M I N G : E N T E R TA I N I N G ‘ G A M E R M O M S ’

A recent survey of parents in four markets

(US, Germany, UK, France) showed that 70% of
mothers reported engagement with video games,
with 74% of these 'gamer moms' playing games on
mobile devices daily.29
 Casual Gaming Advertising 14

CASUAL GAMING ADVERTISING AND

AD TYPES

Advertising within casual games represents a Rewarded video ads

significant opportunity to reach a wide range of These full-screen, unscrollable video ads appear
demographics via a number of different ad types. The when users run out of lives, need more game
absence of user-generated content ensures a positive, currency, or would like to attain additional features as
brand-safe environment, and the leaned-in, engaged an added value. Players only receive the reward after
audience translates to high-quality KPIs. they have watched the full ad, so these ads cannot
be skipped if the player wants to receive the reward.
Casual gaming ad types, as outlined below, mainly fall
under the IAB definition for ‘around the game’ — the
opportunities available to brands during the gaming Interstitial ads
experience but not within the gameplay itself. These full-screen ads are served when there are
natural breaks in the game, such as between levels
or before a player restarts, or during games, for
Banner ads example, when a player loses a certain number of
These ads appear during gameplay as banners
lives. Interstitials can be skipped after a few seconds.
below, above, or to the side of the actual gameplay
screen. They only take up a small part of the screen,
so they do not interrupt or interfere with gameplay.

Overlaid audio ads

These are audio-only ads (similar to radio ads) that
are overlaid onto games during gameplay. They are In the following section, we explore one of the highest-
standalone, out of context to the gameplay, and do performing and most easily accessible ad types that all
not interrupt the game. casual gaming advertisers can leverage — rewarded
video.
 Casual Gaming Advertising 15

The Rewarded Video Break in game

Opportunity
W H AT A R E R E W A R D E D V I D E O A D S ?

Rewarded video ads are full-screen, unscrollable video

ads that appear when users run out of lives, need P L AY E R
more game currency, or would like to attain additional TA P S H E R E
features as an added value. The ads are user initiated,
so the player can proactively choose to watch the ad,
and if they watch the full ad, they receive the relevant
reward, such as an extra life, a hint, or an in-game
bonus. For example, when a player runs out of lives,
the game is put on hold, the ad plays, and if the player
watches the full ad, they receive more lives and return
to the game. As defined by the IAB, rewarded video Ad plays
ads are an ad type that appears ‘around the game’
— during the gaming experience but not within the
gameplay itself.

Video ads are the strongest

performing formats and create
the richest engagement. We
find the A35-64 audience to be
the highest engagement group,
and the one most likely to react Rewards offered
positively to advertising.

Grig Paul Petrescu

Programmatic Operations Manager –
Gameloft for Brands, Gameloft
 Casual Gaming Advertising 16

H O W E F F E C T I V E A R E R E WA R D E D
VIDEO ADS?

Who doesn’t like rewards? As the web evolved from the static pages of Web 1.0
Boosters and other items into the more dynamic and interactive Web 2.0,
advertising became the dominant form of
help players stay in the monetisation. In Web 2.0-based advertising, brands
game longer and associate are simply paying for users’ attention. However, as
increasingly sophisticated, immersive experiences
them with positive
emerge in Web 3.0, the third generation of web
experiences. Advertising technologies, brands will need to work smarter
to attract that attention. Ads built into the gaming
is consciously perceived,
experience and value exchanges such as those
and brands benefit from offered by rewarded video are predicted to play a key
this with pretty high-quality role in effective campaigns in this new monetisation
model.30
KPIs.
Rewarded video ads offer something of value in
Anja Junold
exchange for a player’s time and attention, and the
Team Lead Digital & Business Strategy,
gameplay boost they receive translates to a positive
media plan GmbH
brand association. Players actively decide to watch an
ad, so the message is non-disruptive and delivered at
a time when players are receptive to it.

The focused activity of game playing means that

players are already interacting directly with the content
— arguably more so than on other entertainment and
social media platforms where users may not be as
engaged as they scroll through content. They are also
spending longer periods of time on these types of
apps in comparison to others — when looking at the
time spent across apps, casual gaming and sports
gaming apps have the highest time spent at 21.19
minutes and 22.77 minutes, respectively.31

Rewarded video ads play a role in encouraging

continued gameplay, which not only delivers higher
retention of the player for the publisher but also means
that players are more likely to view the ad multiple
times, increasing ad recall.32 These multiple views,
combined with the fact that players are more likely to
view the full ad so they can receive their reward, leads
to higher brand awareness and recognition.33 As with
other digital ad formats, advertisers can also leverage
frequency capping possibilities in order to prevent ad
fatigue.
 Casual Gaming Advertising 17

Rewarded video is non-disruptive; research has shown

that only 24% of players find rewarded video ads
Run of network
disruptive34 — the lowest percentage among all ad campaigns including
formats — and 86% of mobile gamers do not mind
viewing an ad in exchange for in-game rewards.35 gaming inventory
The value-adding nature of rewarded video is driving
strong positive sentiment among players, with a US reach up to 2.7 times
survey reporting that 76% of US mobile gamers prefer
rewarded video ads over interstitial ads.36 Rewarded
more people aged
video is also proven to resonate with a broad 18-29 than campaigns
demographic, with audiences typically older (age
33–41) than the average audience for all video ads that do not include
(age 24–32), and featuring a far higher share of female
users (57%).37 At the same time, gaming inventory is
gaming inventory.39
effective at communicating with the hard-to-reach
younger demographic — the total reach amongst rewarded video ads in Germany, Switzerland, and
young users (age 18-29) is up to 2.7 times higher Austria total 8.5 million, compared with 4.6 million
when gaming inventory is included in run of network for non-rewarded video.40 The ad requests that
campaigns on the smartx platform​. 38 smartclip receives from gaming publishers offering
rewarded video inventory increased by 83% between
The rewarded video format also delivers the potential 2020 and 202141 — which indicates higher levels of
for high visibility for advertisers. Games publisher traffic and more people being reached by rewarded
Gameloft reported that daily opportunities for video.

R E WA R D S F O R A D V E R T I S E R S

✓ High engagement/actively ✓ Potential for repeat ads within

viewed ads same game, increasing ad
recall and brand awareness
✓ Unscrollable, full-screen ads
✓ High-quality, brand-safe
✓ Positive brand associations environments

✓ Consistently high-quality ✓ Audience segmentation by

KPIs for viewability/VTR game genre

✓ Instant/immediate response ✓ Consistent flow of new users

and ease of conversion
✓ Ability to use existing video
assets
 Casual Gaming Advertising 18

THE KPIs

Misconception
smartclip data shows that rewarded video ads
deliver consistently high-quality KPIs for advertisers
across various industries, including CPG, automotive,
“Pre-video ads are
telecomms, entertainment, and travel. Looking at of higher quality than
smartclip campaign data from 2022, the average
rewarded video ads in
viewability of rewarded video ads was 98%42, and the
format delivers constantly high view-through rates gaming environments.”
(VTRs) on the smartx platform, with VTR averaging at
94%.43

Reality

98%
average viewability of
As detailed in the
information provided in this
rewarded video ads
report, rewarded video ads
in gaming environments
appear within high-quality
94%
average VTR of rewarded
games played by a diverse
audience, and when
video ads looking at KPIs, deliver
impressive view-through
and viewability rates.
 Casual Gaming Advertising 19

TA R G E T I N G , M E A S U R E M E N T , A N D
V E R I F I C AT I O N
Misconception

Traditional targeting capabilities available within online

video advertising are available for rewarded video “It’s not safe enough for our
ads. These include targeting by age, gender, interests, brand — we can’t take the
income, or custom channel. On the smartx platform,
advertisers can book campaigns across smartclip’s
risk.”
entire gaming inventory or target a dedicated audience
or themed channel, for example, entertainment,
female, or sports. Advanced targeting solutions are Reality
also constantly evolving for a future with limited access
to identity-based data, including leveraging publishers’
first-party user log-in data and contextual targeting.
Gaming advertising
is not about risking
budgets on unproven
platforms or unknown
ad formats. Businesses
Gaming publishers know a lot in all sectors are utilising
about their users. Through login gaming’s brand-safe
data, they have information about environments, placing
gender, age, genres, devices, familiar video ad formats
operating systems, etc. This with the reassurance of
information minimises scattering targeting, delivery, and
loss and ensures ads reach the measurement solutions
relevant target group. that are equivalent to other
Anja Junold mass-market mediums.
Team Lead Digital & Business Strategy,
media plan GmbH
 Casual Gaming Advertising 20

The wide range of apps and inventory available In addition, ads delivered within gaming app inventory
within gaming, alongside the wide range of user can generally be measured via the IAB Open
demographics reachable, leaves many with the Measurement Video Software Development Kit (OM
impression that it is a highly fragmented landscape that SDK) for In-App using the IAB Video Ad Serving Template
is too difficult to navigate or too risky for their brand. 4 (VAST4) facilities — smartclip serves as a support for
However, there are a wealth of automated and manual publishers and video player providers to ensure these
solutions that advertisers can utilise to uncomplicate standards are being implemented on both ends. The OM
gaming advertising, eliminate risk, and bring a tailored SDK set of coding provides a consistent and transparent
approach to campaigns. audience measurement and verification solution, while
the VAST framework provides a common protocol for the
Adtech solutions are available to curate inventory, safe and standardised delivery of video ads from a video
ensuring that ads are delivered in environments ad server to multiple publishers/devices. This ensures
appropriate to the brand. These include rigorous media that ads appear as intended, that concerns regarding
quality processes that are automatically applied to viewability measurement are unwarranted, and that
guarantee high-quality inventory. Ad verification tools gaming inventory is no more prone to invalid traffic than
such as Pixalate, DoubleVerify, and Moat, which can other content-driven inventory sources.
carry out measurements of various ad verification KPIs
on gaming inventory, are also used — for example,
when advertisers book campaigns with a viewability
Misconception
guarantee via smartclip. And the manual processes
that can be blended with these automated solutions
include thorough checks of all apps, extensive research, “It’s an impenetrable
and utilising knowledge from experienced supply and
jungle of apps — booking
verification experts who understand the needs and
requirements of the demand side. When advertisers gaming inventory is just
book inventory through smartclip, all these solutions are too complicated.”
combined to ensure maximum performance from all
gaming ad campaigns.

Reality

Adtech solutions are

available that allow for
easy curation of gaming
Games will become a significant inventory. Campaigns
advertising platform as publishers can be individually
increase their investment in tailored to ensure apps
consumer data, developing their and inventory meet each
own player insights that they brand’s specific criteria in
once relied on the app stores and terms of demographics,
advertising networks to provide. environment, and quality
— simplifying the process
Grig Paul Petrescu for all advertisers.
Programmatic Operations Manager – Gameloft for
Brands, Gameloft
 Casual Gaming Advertising 21

Summary
Gaming advertising — particularly rewarded video KEY LEARNINGS
— presents an exciting opportunity for advertisers
across all sectors, and it does not exist in isolation
✓ Breaking down preconceived notions is essential
to other types of advertising. Advertisers can
to ensure everyone understands the potential of
utilise video ads across multiple platforms —
gaming advertising.
gaming, digital, and television — reducing expense,
enhancing ad recall, and creating 360-degree
✓ Gaming is no longer niche, a gamer is anyone
brand awareness. However, it is essential that
engaged with a digital game, on any device, at
advertisers get the message and targeting right
any time.
in order to achieve the impressive KPIs that are
possible through the rewarded video ad format.
✓ Casual gaming offers the potential to reach a
Players are highly motivated to watch rewarded
diverse range of consumers — but the message
video ads as they are about to receive a reward for
must be engaging.
doing so; nevertheless, ads need to be relevant,
clear, and concise to ensure players either engage
✓ New targeting solutions are evolving as the
with the message then and there or remember
advertising industry reduces its reliance on
it later. It is also essential that advertisers invest
identity-based tracking.
in understanding the composition of a gaming
audience rather than make generalisations — with
✓ Gaming is a fragmented market, but advertisers
such a leaned-in viewer, reaching the right audience
of all types and sizes can make use of a range of
and maintaining their attention is vital to success.
adtech and curation solutions — such as those
offered by smartclip — that will enable them to
In our conversations with advertisers who are
take advantage of the opportunities available.
utilising rewarded video, some of the key success
factors they noted include prominent branding
✓ Advances in technology, including 5G and cloud
and messaging, building emotional connections,
gaming, will make gaming more accessible and
ensuring mobile optimisation, delivering thematic
omnipresent than ever.
consistency, and offering eye-catching creatives.
Appropriate targeting is also important — casual
✓ Rewarded video delivers the highest positive
gaming has a broad audience, but different games
sentiment among players, ensuring a viewer-
appeal to different demographics, so advertisers
led experience that results in high-quality KPIs,
need to make full use of targeting capabilities.
positive brand associations, and high ad recall.

Gaming has become a well-established form of media

consumption — and it is not only an integral part of today's youth
culture, it is also now highly significant amongst all age groups. As a
result, this dynamic industry delivers huge potential for advertisers,
offering maximum scalability of reach and high-quality KPIs for their
video campaigns in a completely brand-safe environment.
Isabella Thissen
COO, Ad Alliance
 Casual Gaming Advertising 22

LO O K I N G I N TO T H E F U T U R E

With casual gaming continuing to grow and diversify to offer innovative, immersive experiences. While
with new games and new players, and advertising not all these developments directly impact casual
opportunities such as rewarded video offering gaming, they all serve to build an ecosystem that
clear value exchanges, strong engagement, and delivers multiple ways for advertisers to reach
advanced targeting capabilities, we predict that we various target audiences. Just as revolutions in
will see more and more advertisers embracing the television viewing and advertising have created
potential it offers. brand-new opportunities for all types of advertisers,
the continued evolution of gaming — how games
The smartphone — the main device used for are played, who plays them, and how those people
casual gaming — is increasingly growing in can be reached — is resulting in exciting new
importance when it comes to entertainment. And opportunities that any advertiser looking to reach an
the smartphone is also our go-to destination for engaged audience cannot ignore.
many other activities such as engaging with others
and shopping. With smartphones playing such a
prominent role in every part of our lives and gaming
apps so easily accessible on them, the popularity
of casual gaming — and the effectiveness of casual
gaming advertising — can only rise in tandem.

At the heart of any great game

Rewarded video in particular has been highlighted
as a key ad format for monetisation models in experience is its fans. And this
the future as our digital environment evolves. The holds true across platform,
transition from Web 2.0 — the current version of
the internet where the goal is to draw attention genre, and game type. The
to platforms and monetise via ads — to the more first step is understanding the
sophisticated, immersive Web 3.0 will put a greater
emphasis on value exchanges, such as those
audience — what motivates them,
offered by rewarded video, and ads built into the what engages them, and their
gaming experience.
emotional need states. The right
Finally, as previously mentioned, various trends message in the right context,
and developments in the wider gaming industry
delivered in a player-first way that
will also continue to boost the performance and
appeal of gaming advertising. New platforms and fits with the game experience,
streaming services are entering the gaming market, provides outsized results for
existing media platforms and gaming providers
are diversifying their offerings, hardware and 5G brands.
connectivity continue to improve, the popularity
of esports competitions and console gaming is Jordan Shlachter
growing, and new technologies are allowing brands Head of Research, Activision Blizzard Media
 Casual Gaming Advertising 23

About smartclip
smartclip is the adtech development unit of RTL Group
— Europe’s leading free-to-air broadcaster group. Our
proprietary advertising technology is custom-built for the
needs of European broadcasters and publishers — enabling
media owners to implement smarter monetisation strategies.
We are committed to delivering the most innovative video
ad experiences spanning in-stream, out-stream, connected
TV, addressable TV, and gaming — ultimately empowering
brands with true cross-screen storytelling opportunities on
all devices. The media sales division of smartclip will merge
with RTL AdConnect and G+J i|MS to form RTL AdAlliance,
an international advertising and technology sales champion.
Once the merger is complete, smartclip will focus strictly on
technology development.

Headquartered in Hamburg, smartclip has offices in Berlin,

Munich, Düsseldorf, Cologne, Gütersloh, Stockholm, Oslo,
Helsinki, Amsterdam, Milan, and Rome.

For more information, please visit www.smartclip.tv

About RTL AdAlliance

RTL AdAlliance, a subsidiary of RTL Group, is a leading one-
stop advertising champion to deliver premium and unrivalled
Total Media inventory at a global level for international and
national advertisers and media buyers. The brand bundles
the competencies of three strong media partners: RTL
AdConnect, G+J i|MS, and smartclip sales and media. It offers
TV, BVOD, ATV, OTT, CTV, Online Video, audio, and print as
well as cross-media inventory under one roof with a strong
focus on making premium European inventory accessible in a
simplified way.

RTL AdAlliance is the first address for publishers in Europe

seeking ad tech and supply services, as well as for global
publishers who look out for reaching European users.
Current and future media partners get access to the largest
international supply network across the globe — with local
teams in 13 countries to connect brands into European living
rooms.

For more information, please visit www.rtl-adalliance.com

 Casual Gaming Advertising 24

Authors Contacts
A D V E R T I S E R C O N TA C T

Pieter van den Bergh

Executive Director Europe Demand
smartclip Europe (moving to RTL AdAlliance)
[email protected]
Shira Leffel

Executive Director Europe P U B L I S H E R C O N TA C T

Marketing & Product Education
smartclip Europe Henning Schwandt
Executive Director Europe Supply
smartclip Europe (moving to RTL AdAlliance)
[email protected]

P R E S S C O N TA C T

Kathrin Müller
Executive Director Europe PR & Communications
Henning Schwandt smartclip Europe
[email protected]
Executive Director Europe Supply
smartclip Europe (moving to RTL AdAlliance)

Lisa-Theresia Rischke

Head of Brand
smartclip Europe

Sarah Peters

Senior Supply Manager Europe

smartclip Europe (moving to RTL AdAlliance)
 Casual Gaming Advertising 25

Contributors
Thomas Servatius Martin Voss
Co-CEO & MD, Platform & Technology Head of Ad Verification & Analytics
smartclip Europe smartclip Europe (moving to RTL AdAlliance)

Dr Oliver Vesper Philipp Linden

Co-CEO & MD, Media & Operations Senior Manager Supply Management &
smartclip Europe (moving to RTL AdAlliance) Cooperations, Data & Targeting
smartclip Europe (moving to RTL AdAlliance)

Giuseppe Bronzino
Managing Director Damir Avdic
smartclip Italy (moving to RTL AdAlliance) Supply Manager Europe
smartclip Europe (moving to RTL AdAlliance)

Ángel Fernández Nebot

Managing Director Karen Knüppel
smartclip Spain Marketing Design Manager Europe
smartclip Europe

Stephen Byrne
Managing Director, Adtech & Platform Partnerships Harshita Parnami
smartclip Nordics (moving to RTL AdAlliance) Motion Graphics Designer
smartclip Europe

Halvard Kristiansen
Managing Director, Demand & Advertising Partnerships Rosen Dimitrov
smartclip Nordics (moving to RTL AdAlliance) Designer
smartclip Europe

Pieter van den Bergh

Executive Director Europe Demand Isabella Thissen
smartclip Europe (moving to RTL AdAlliance) COO
Ad Alliance

Mirjam Naves
Senior Director Process Management Katie Froggatt
smartclip Europe Editor
CopyKate

Anne Papsdorf
Executive Director Europe Supply Jordan Shlachter
smartclip Europe (moving to RTL AdAlliance) Head of Research
Activision Blizzard Media Ltd.

Daniel Spångvall
Head of Products Grig Paul Petrescu
smartclip Nordics (moving to RTL AdAlliance) Programmatic Operations Manager – Gameloft for Brands
Gameloft

Michael Zeiler
Senior Director Market Development Europe Ari Brandt
smartclip Europe (moving to RTL AdAlliance) Global VP
ironSource Exchange

Sebastian Neumann
Director Demand Solutions Anja Junold
smartclip Europe (moving to RTL AdAlliance) Team Lead Digital & Business Strategy
media plan GmbH
 Casual Gaming Advertising 26

Terminology Guide
AAA (‘triple A’) games - An informal gaming industry classification
for high-profile, high-budget ‘blockbuster’ video games from large,
well-known publishers.

Digital native - A term used to describe individuals who were

born or brought up during the era of computers, the internet,
and other information technologies (often defined as post-1980).
Having been surrounded by this technology from an early age,
digital natives are inherently familiar with it and consider it to be an
integral part of their lives.

KPI (Key Performance Indicator) - KPIs are quantifiable

measurements used to gauge how effective someone or
something has been in achieving key business objectives. They
can be used to evaluate individuals, teams, companies, or — as in
this case — advertising campaigns.

smartx - Launched in 2012, the smartx platform is a holistic

full-stack ad serving and SSP sales house solution offered by
smartclip. smartx is designed to empower European broadcasters
and publishers to offer innovative advertising solutions to
international advertisers, and to monetise their content across
all platforms and devices in the most efficient and effective way
possible.

SSP (Supply-Side Platform) - SSPs are adtech platforms that

allow publishers to showcase their inventory to multiple advertisers
on ad networks, auction off unsold inventory programmatically via
real-time bidding (RTB) auctions on ad exchanges, or sell inventory
directly to advertisers via demand-side platforms (DSPs).

Web 1.0 - A term used for the earliest version of the internet,
which mostly consisted of static, read-only web pages with limited
interactivity.

Web 2.0 - A term used to describe the second — and current —

stage of development of the internet and how it is used. Compared
with the static, read-only content of Web 1.0, Web 2.0 has more
emphasis on dynamic user-generated content, user engagement,
information sharing, and user interaction (such as on social media).

Web 3.0 - The next, third generation of web technologies. Web

3.0 is still evolving, so there is no widely accepted definition, but it
is expected to have an emphasis on decentralised applications,
blockchain-based technologies, machine learning and artificial
intelligence (AI), and semantic technology.
 Casual Gaming Advertising 27

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