Lancaster University Management School - 54 Degrees Issue 16

THAT’S ENTERTAINMENT Word of mouth is a marketing tactic older than them all. Opinions on brands, services and products are developed and spread non-commercially, and consumers treat these views with less scepticism than company-driven marketing efforts. Anything that can increase that and the intention to carry on playing – and thus seeing more adverts – is invaluable to advertisers. Our results showed that, surprisingly, only social affiliation and entertainment values can predict positive word of mouth and intention to continue playing the game. Gaining rewards and credit in the game for watching the ad influenced the positive word or mouth. We found no relationship between either enjoyment or escapism and continuation intention. Perhaps this is due to the nature of in-game ads, which resonate ad clutter among gamers even if they receive rewards. The research also shows no significant relationship between visual appeal and the intention to continue playing. BUILDING A STRATEGY The findings have important implications for companies developing brand and communications strategies in how they present their ads to the audience in the right apps at the right time. In-game ads offering users rewards, points or credits after watching are not only a good strategy for gaming companies, but also have positive benefits. Companies can use this strategy to reduce and avoid ad clutter. Users showmore tolerance towards in-app ads when the purpose is providing information or user assistance, or if the ads are suggestions for downloading similar games based on user preferences, thereby stimulating in-app purchases and generating more revenue. Companies can develop brand and communication strategies leveraging specific advertising formats – those which stimulate social affiliation and entertainment experiences – and reaching the right audiences in the right apps at the right time. This can develop competitive positioning that helps cultivate long-term loyalty and engagement with gamers. If ad agencies and games developers formulate a user engagement approach, which does not suffer from ad clutter or avoidance, as gamers choose if and when to access them, the chances are that positive outcomes will be achieved. Dr Hina Khan is a Lecturer in Marketing and Director of International Teaching Partnership and Development at Lancaster University. Her research encompasses consumer behaviour, emerging markets and consumption. This article is based on Ads in gaming apps: Experiential value of gamers, by Dr Naser Valaei, of Liverpool John Moores University; Professor Gregory Bressolles, of KEDGE Business School; Dr Hina Khan, of Lancaster University Management School; and Yee Min Low, of Sunway University. h.khan11@lancaster.ac.uk FIFTY FOUR DEGREES | 53

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