Gamesight recently released their 2024 State of Performance Marketing for Videogames report – and it’s bursting at the seams with incredible insights! Browsing through the report, it’s clear that platforms like Twitch, Reddit, and X (formerly Twitter) provide some of the most effective ways to drive game sales.
While the report is geared toward PC and Console segments, there are definite takeaways mobile game marketers should consider as well. With these platforms playing an increasingly pivotal role in game marketing, all game marketers must adapt their strategies to maximize reach and conversions.
Here are some of the most important takeaways from the report – courtesy Gamesight CEO Adam Lieb and Gamesight Head of Data & Measurement Christian Thomas. Don’t forget to check out the end of the article to get the full report, as well!
Chapters
- Twitch & YouTube: Game Marketing Powerhouses
- Reddit: A Rising Star in Game Marketing
- X (Twitter): A Game Marketing Dark Horse
- The Rising Importance of Influencers in Game Marketing
- Key Takeaways & Report Download
🎮 Twitch & YouTube: Game Marketing Powerhouses
Twitch and YouTube have established themselves as the most effective platforms for driving success in the PC and console gaming markets. Their content-driven nature distinguishes them from traditional performance marketing platforms like Google or Facebook and social networks such as X and Reddit. As a result, game marketers can leverage these platforms to reach and engage gamers in highly targeted and impactful ways.
TLDR
Leverage Twitch & YouTube Synergies – Use YouTube for awareness through trailers and influencer content, while Twitch serves as a deep-dive platform for engaged buyers researching games via live gameplay.
Higher Conversion, Not Clicks – While CTR may be lower on Twitch and YouTube than on traditional platforms, conversions are higher because ads reach already-interested gamers in a relevant content environment.
Cost Barriers Exist – Advertising on these platforms requires a significant budget, particularly on Twitch, where high CPMs and minimum spends can limit accessibility for smaller campaigns.
Content Quality Matters – Successful ads on these platforms demand high production value and engaging storytelling, requiring additional resources beyond standard social media ads.
Twitch Is Underutilized – Despite being the highest-converting platform for gaming audiences, only 18% of campaigns use Twitch, mainly due to cost and content requirements, though influencer marketing remains a viable alternative.
Acquisition and Retention Through Content-Driven Platforms
Twitch and YouTube perform exceptionally well across key marketing metrics, including conversions and retention. In fact, Twitch has the highest conversion rate across ad networks, coming in at 12%! Unlike traditional social media or search-based marketing, these platforms allow advertisers to place their content directly in front of engaged audiences who are actively consuming related gaming content. This context-driven approach enhances relevance and effectiveness, ensuring that game ads reach users at optimal moments in their discovery and decision-making processes.
One of the key synergies between YouTube and Twitch is how they function at different stages of the marketing funnel. YouTube acts as an awareness driver, exposing users to new games through trailers, influencer coverage, and recommendations. Meanwhile, Twitch serves as the deep-dive platform where potential buyers conduct their research by watching extended gameplay sessions from trusted streamers. This combination can increase the likelihood of conversion, as consumers are already highly engaged and invested in the content before making a purchasing decision.
One interesting fact to note is that CTR (click-through rate) might actually be lower on these platforms compared to more traditional platforms like Google, but conversions on clicks is much higher – precisely because your ad is more likely to be seen by those who already know about your game and are open to seeing more.
Challenges of Advertising on Twitch and YouTube
Despite their effectiveness, Twitch and YouTube present certain challenges that limit their widespread adoption among advertisers. One major factor is cost. Running high-quality video ads on these platforms requires significant investment, both in terms of production and media spend. Twitch, in particular, operates more like traditional television advertising, with high CPMs and minimum budget requirements that can make it inaccessible for smaller campaigns.
Additionally, creating effective video content for these platforms demands a specialized skill set. Unlike social media ads that can be relatively simple to produce, successful campaigns on Twitch and YouTube often require high production value and creative storytelling to capture audience attention. This added complexity means that marketers must allocate additional resources for content creation, making it a less scalable option compared to other digital advertising channels.
The Undervalued Potential of Twitch in Media Plans
Despite its status as the highest-converting platform for gaming audiences, Twitch remains underutilized in media plans, with only 18% of campaigns incorporating it. The reasons for this underrepresentation include high minimum ad spend requirements and the need for bespoke creative assets. However, this statistic may not fully capture the extent of Twitch’s influence, as many brands engage with the platform through influencer marketing rather than traditional paid media.
Leveraging Influencers for Cost-Effective Impact
While the cost of traditional media placements on Twitch and YouTube can be high, many game marketers opt to work with influencers instead. This strategy allows brands to tap into established audiences without the prohibitive costs associated with direct ad placements. For example, a publisher might forgo running paid ads on Twitch but instead invest heavily in influencer partnerships, effectively reaching the same engaged audiences in a more organic manner.
🚀 Reddit: A Rising Star in Game Marketing
Reddit has emerged as a significant player in the game marketing space, demonstrating impressive improvements over the past year. With its unique community-driven approach and evolving advertising infrastructure, game marketers now have a valuable platform to engage potential players effectively.
TLDR
Specialized Support for Game Marketers – Reddit has dedicated teams for PC/console and mobile gaming, offering tailored ad solutions to better serve game advertisers.
Expanded Ad Products & Conversion Tracking – New features like sponsored AMAs, category takeovers, and the conversions API help optimize ad spend and improve performance.
Strong Performance Metrics – In 2024, D7 retention rates for Reddit-acquired users doubled (23% to 50%), while conversion rates improved significantly (2.8% to 4.04%).
Creative & Targeting Matter – Ads that blend naturally into Reddit’s discussions and leverage user engagement (comments, upvotes) tend to perform better.
Boosted Discoverability via Google – Google’s increased ranking of Reddit content enhances organic traffic, making it a stronger discovery tool for gaming audiences.
The Evolution of Reddit’s Advertising Capabilities
One of the key drivers behind Reddit’s rise in game marketing is its investment in performance marketing support. The platform has dedicated teams for different market segments, including PC/console gaming and mobile gaming. This specialization has allowed for the development of tailored advertising solutions that cater specifically to the needs of game marketers.
The expansion of Reddit’s ad product offerings over the last two to three years has also contributed to its growing impact. Many advertisers are just now discovering features such as sponsored AMAs and category takeovers, both of which have shown strong performance. Additionally, Reddit’s move to general access with its conversions API enables marketers to pass conversion data back to the platform, optimizing ad spend and improving campaign efficiency.
Performance Metrics Show Significant Growth
Reddit’s effectiveness as a marketing channel is evident in the data. The D7 retention rate for users acquired through Reddit has more than doubled in 2024 compared to 2023, increasing from 23% to 50%. The overall conversion rate has also improved drastically – from 2.8% to 4.04%. These metrics highlight Reddit’s growing potential as a high-performing advertising platform for game marketers.
Navigating Cost and Performance Variability
Despite these improvements, cost data from Reddit remains limited, making it difficult to analyze the precise relationship between advertising spend and performance. However, anecdotal evidence suggests that while Reddit can deliver strong results for some game marketers, others may experience mixed outcomes. The platform exhibits a higher variance in ad effectiveness compared to other channels, meaning that while some campaigns perform exceptionally well, others may not resonate as strongly with the Reddit audience.
The Role of Creative and Targeting in Success
A major factor in determining Reddit ad success is the nature of the creative used. Ads that blend seamlessly into Reddit’s organic content and feel native to the platform tend to perform better. User engagement — such as comments and upvotes — can make an ad feel like a natural part of the discussion rather than a disruptive promotion.
Reddit has historically lagged behind competitors in terms of advanced targeting and conversion optimization. However, recent advancements in these areas have improved its ability to deliver relevant ads to users. As a result, marketers can now take advantage of better audience targeting and conversion tracking, enhancing overall campaign effectiveness.
Increased Discoverability Through Google Search
Another advantage Reddit has gained is increased visibility in Google search results. As Google has given more weight to Reddit content in search rankings, the platform has seen a rise in organic traffic. Users searching for game-related content often encounter Reddit discussions, potentially exposing them to in-platform advertisements they might not have otherwise seen. This trend contributes to Reddit’s growing role as a discovery tool for gamers and an attractive platform for game marketers.
🥊 X (Twitter): A Game Marketing Dark Horse
X (formerly Twitter) has proven to be an unexpected yet valuable platform for game marketers. Despite widespread assumptions that advertisers would abandon the platform following its ownership transition (looking at you, Elon Musk!), gaming advertisers have capitalized on the shifting landscape, benefiting from reduced competition and lower cost-per-thousand-impressions (CPMs). While major brand-sensitive advertisers have withdrawn, performance-driven marketers have found X to be a cost-effective channel to reach engaged gaming communities.
TLDR
Cost-Efficient Ad Opportunities: The departure of major brand advertisers has led to lower CPMs on X, offering better ROI for game marketers, especially mid-sized and smaller advertisers willing to navigate platform risks.
Targeted Community Engagement: X’s ad infrastructure allows marketers to reach highly engaged gaming communities, similar to Reddit, making it a strong platform for performance-driven campaigns.
PlayStation & Japan Advantage: X has proven particularly effective in targeting PlayStation users in Japan, thanks to its strong user base and VTuber-driven engagement, making it a prime channel for PlayStation-focused advertising.
The Unexpected Resilience of X in Game Marketing
Contrary to expectations, X has not suffered a mass exodus of advertisers within the gaming industry. The departure of major brand advertisers created an environment where gaming advertisers could exploit lower CPMs, resulting in an improved return on investment (ROI). With competing platforms such as Mastodon and Bluesky lacking ad infrastructure, X remains a viable choice for performance-focused campaigns.
Moreover, X shares similarities with platforms like Reddit, allowing advertisers to target highly engaged gaming communities effectively. The strong community ties within X enable precise ad targeting based on user conversations and interests. This level of targeting, combined with cost efficiency, makes X particularly attractive for mid-sized and smaller advertisers willing to accept inherent platform risks (namely: your ads potentially showing up next to unsavory posts) in exchange for better returns.
Enhanced Ad Infrastructure, Ad Credits, and Performance Marketing
X has actively improved its ad infrastructure post-ownership transition, focusing on performance marketing as a key revenue driver. Notably, the introduction of a conversion API for PC and console games — previously unavailable — has allowed marketers to optimize their campaigns effectively. Additionally, aggressive ad credit programs for PC and console game advertisers have encouraged participation, making X an even more compelling choice for game marketing.
Performance marketing on X has evolved to mirror aspects of Reddit’s approach, emphasizing community-driven engagement. Marketers can strategically place ads in spaces where players actively discuss their gaming preferences, making X a strong component of a well-rounded media plan.
PlayStation and the Japanese Market: A Unique Advantage
A surprising finding in recent performance analysis is X’s high effectiveness in targeting PlayStation users, particularly in Japan. Japan ranks as X’s second-largest user base outside of the U.S., and the country’s robust VTuber community plays a significant role in driving engagement. Many VTubers stream JRPGs and competitive shooters, creating an ideal environment for PlayStation-focused advertising.
This discovery was not anticipated but emerged consistently across multiple advertisers targeting different geos. The combination of a strong PlayStation user presence and a deeply engaged Japanese gaming audience has made X a powerful tool for advertisers looking to drive PlayStation conversions, particularly in Japan.
🤩 The Rising Importance of Influencers in Game Marketing
The role of influencers and content creators in game marketing has become a fundamental component of the purchasing decision process for modern gamers. When making decisions about whether to buy a game, particularly on PC and console, consumers increasingly turn to content creators for validation and insight. Watching a trusted creator play a game provides a level of authenticity and transparency that traditional advertising cannot match. This shift in consumer behavior has made influencer marketing an essential tool for game marketers.
TLDR
- Influencers Drive Deeper Engagement – Unlike traditional ads, influencer content fosters real-time interaction, making audiences more engaged and receptive.
- Evolving Role of Influencers – Marketers now see influencers as trusted community members rather than just promotional tools, leading to more authentic partnerships.
- Data-Driven Influencer Marketing – The shift from PR-driven strategies to performance marketing allows for better measurement of campaign effectiveness.
- Beyond Follower Counts – Successful campaigns focus on engagement, watch time, and audience interaction rather than vanity metrics like subscriber numbers.
Why Influencers Are Effective
One of the key reasons influencers are so impactful is their ability to showcase a game in an organic and engaging way. Unlike traditional advertisements, which may be easily ignored or scrolled past, influencer content is actively consumed by audiences who trust their opinions. Watching a creator play a game for an extended period is vastly different from encountering a static or video ad — it provides deeper engagement, real-time reactions, and direct audience interaction. However, because influencer marketing does not fit neatly into traditional advertising metrics such as CPM, it has historically been challenging for marketers to quantify its impact accurately.
The Evolution of Influencer Marketing
Over the years, the influencer marketing landscape has evolved significantly. Initially, game publishers experimented with different approaches, sometimes treating influencers as mere “walking billboards.” However, as the industry matured, a more nuanced understanding has developed, recognizing influencers as integral community members whose credibility is paramount. This evolution has also led to an increase in professionalism among influencers, improving how they communicate sponsored content and making campaigns more effective. Consumers, too, have grown more accustomed to seeing sponsored content, making them more receptive to these collaborations.
Shifting Strategies in Influencer Partnerships
Game marketers have also refined their approach to influencer partnerships. While early influencer marketing efforts were often managed by PR teams focusing on sentiment and views, the responsibility has increasingly shifted to performance marketing professionals who prioritize data-driven metrics such as conversion rates and viewer engagement. This shift towards quantifiable results has led to greater investment in influencer campaigns, as marketers can now measure their effectiveness more accurately.
Key Metrics for Success
A crucial aspect of optimizing influencer marketing efforts is understanding the right metrics to track. Many publishers still focus on surface-level indicators like subscriber or follower counts, but these are not necessarily the best predictors of success. Instead, effective influencer marketing campaigns consider factors such as audience engagement, watch time, and interaction levels. The value of a viewer watching an ad in passing is significantly lower than that of an engaged viewer actively participating in a content creator’s community.
Key Takeaways & Report Download
Gamesight’s 2024 State of Performance Marketing for Videogames report delivers game-changing insights for marketers looking to optimize their strategies across Twitch, YouTube, Reddit, X, and more. The data is clear — content-driven platforms offer unparalleled engagement and conversion potential, while influencer marketing continues to be a vital force in the decision-making process for gamers.
Whether you’re marketing for PC, console, or mobile, understanding how to leverage these platforms effectively can make all the difference in campaign success. For the full breakdown of key findings, best practices, and expert insights, download the complete report now and stay ahead in the ever-evolving world of game marketing!
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