A report released by global advertisement firm Dentsu shows that the gaming industry is now bigger than music and movies combined and emphasises that corporates need to include it in their media strategy.
The report, 2024: State of Gaming Report, was published in association with GWI, a global consumer research company. It also focused on the MENA region (specifically Saudi Arabia, the United Arab Emirates, and Egypt) and called it a “growth market to keep on your radar.”
The report claimed that 2.4 billion people worldwide use a device to play games, with 654 million across 53 markets having purchased video games. In the second quarter of 2024, gaming live streaming was up 10 per cent, with over 8.5 billion hours watched across all streaming platforms.
Citing a Newzoo 2023 report, Dentsu said revenue from the sector reached $184 billion worldwide, compared to $33.9 billion in box office collections and $28.6 billion in recorded music revenue.
However, despite the huge opportunities and distinct audiences, ad spending on gaming is still under five per cent of the total mix.
The sector provides authentic engagement with a target group where three out of four are buyers of luxury goods. The report emphasised that brands can achieve higher viewability and attention through gaming environments, compared to traditional media.
Brent Koning, EVP global gaming lead at Dentsu, commented: “There are too many opportunities for brands to ignore in gaming today. Integrated gaming marketing plans have touchpoints in playing, watching, and creating in and around games.
“Brands can be active participants and build credibility with these communities by supporting the games that players subscribe to. A thoughtful gaming strategy will then be rewarded by consumers, with brand love, when the value exchange is created for the player.”
The MENA gaming market
Claiming that 92 per cent of people (70.7 million) in MENA-3 markets were gamers in 2024, Dentsu says the numbers are up 3.3 per cent year-on-year with Saudi the big driver.
Citing a Niko Partners study, the report said spending in MENA-3 (KSA/UAE/Egypt) was valued at $1.92 billion in 2023. It is expected to grow by 8.2 per cent to $2.08 billion this year and reach $2.87 billion in 2028, implying a CAGR of 8.52 per cent.
The number of gamers is expected to grow to 83.7 million in 2028, making MENA the second fastest-growing region, both in terms of revenue and number of gamers.
Esports is a big opportunity throughout MENA-3 with 22 percent of gamers in the region interested in it. Dentsu says this number is 12 per cent higher than the global average.
The report quotes a Boston Consulting Group (BCG) study titled ‘Gaming & Esports: Media’s Next Paradigm Shift’, which reveals that if gaming and esports’ popularity continues increasing at its current trajectory, overall consumption in Saudi Arabia is expected to reach $6.8 billion by 2030 at an average CAGR of 22 per cent.
In 2022, the Kingdom unveiled the National Gaming and eSports Strategy. As part of the strategy, the country plans to develop 30 games and create about 40,000 jobs by 2030.
Jon Holloway, Regional Managing Director at Dentsu Creative MENA, said: “Brands have failed to crack the gaming arena because they lack authenticity, they haven’t found a way of elevating the experience for gamers and becoming useful in their world.
“In the region, gaming isn’t another media channel… it’s a highly connected ecosystem, where some of the most awe-inspiring content is created and interacted with for hours every single day, so gamers expectations are super high.
“Brands need to evolve and play with who they are and how they show up to match this expectation.”
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