Gaming have been a popular marketing tool for companies for years. Customers indulge in the fascinating chance to claim rewards, concurrently affording corporations the ability to reinforce brand prominence, increase earnings, and amass indispensable clientele details. Prior to embracing the gaming phenomenon, companies must comprehend the rationale behind their sponsorship, while also acknowledging the possible hazards and difficulties they may encounter.
Companies should delve into the reasons for sponsoring gaming and assess the prospective risks and challenges before wholeheartedly committing to this promotional avenue. To avoid any complications down the road, businesses must first analyze their sponsorship objectives and be mindful of the obstacles and pitfalls that may arise when engaging in gaming.
Benefits of Sponsoring Gaming
Sponsoring gaming provides a significant advantage in terms of boosting brand awareness. The provision of a prize to be won can serve as a powerful means of attracting new customers who were previously unaware of a brand.
McDonald’s embarked on the McPick 2 gaming journey in 2015, granting customers the possibility of obtaining free sustenance for a full year. The campaign proved to be a tremendous triumph, generating not only heightened brand awareness but also a significant uptick in sales.
Another benefit of gaming is the ability to boost sales. By associating a gaming with specific purchases, companies can stimulate customers to increase their spending, consequently enhancing their odds of securing a prize.
Boosting sales is achievable by holding a gaming and stipulating that customers must buy a specific item to enter is a viable strategy for a company. Boosting sales is achievable by holding a gaming and stipulating that customers must buy a specific item to enter is a viable strategy for a company. This not only increases sales but also helps companies collect valuable customer data.
Gaming are a valuable avenue for companies to gather customer data, making it an optimal way to extract insights about customers. Companies can leverage gaming by stipulating the provision of contact information as a requirement for entry, thereby procuring data that can be used for future marketing and advertising efforts.
Email addresses, phone numbers, and demographic information are some of the data that companies can procure from gaming entrants by requiring contact information. Companies can leverage the information obtained through gaming participation to develop marketing campaigns that effectively reach the desired audience.
Risks and Challenges of Sponsoring Gaming
Gaming offer many benefits, but companies must also be mindful of the potential risks and challenges associated with them. The legal requirements associated with gaming can be a significant challenge for companies to navigate.
Failure to comply with the legal requirements associated with gaming can lead to negative publicity and legal repercussions. For example, PepsiCo’s gaming campaign of 2012 violated gaming laws, resulting in a costly $50 million settlement.
Another challenge is the potential for negative publicity. Gaming campaigns can generate controversy, and companies must be equipped to handle any negative reactions.
For example, a major airline’s gaming campaign in 2018 faced backlash for its requirement that customers share personal information to participate. The negative publicity resulting from the backlash caused damage to the company’s reputation.
Gaming can be expensive to run. When organizing a gaming campaign, companies must consider the expenses associated with prizes, advertising, and legal fees. Small companies may find this expense to be a significant financial challenge.
Conclusion
While sponsoring gaming can offer many benefits. It’s imperative for companies to reflect on the purpose of sponsoring a gaming and to understand the possible risks and challenges.
Companies must comply with gaming laws, prepare for negative publicity, and have the necessary budget to execute a successful campaign. With careful planning and precise execution, gaming can be a valuable asset for companies to enhance brand recognition, augment sales, and collect significant consumer insights.