Gamification as marketing strategy Part 1: Fostering long-term user engagement & loyalty

Gamification is the application of game-design elements and principles in non-game contexts. The notion of “gamification” has transcended its status as a mere buzzword to become an integral part of engagement and retention strategies. No longer relegated to the realm of optional add-ons, gamification has emerged as a potent tool, enhancing user experiences and contributing significantly to the success of marketing campaigns.

As users increasingly demand interactive and immersive experiences, marketers have turned to the principles of gaming to captivate and retain their audience. The inclusion of gaming elements has evolved from a novelty to a strategic necessity.

Gamification is about turning mundane tasks into engaging and enjoyable experiences. By integrating game-like features, marketers have at their disposal novel ways to capture and maintain user attention. This approach not only encourages initial interaction, but also fosters long-term user engagement and loyalty.

In this two-part series, Adgully explores how incorporating gaming elements not only boosts user engagement, but also plays a crucial role in the overall success of a campaign.

The buzzword

Gamification has been a buzzword in the app world for years now – and it is no longer just a cool added extra, says Adam Smart, Director of Product - Gaming, AppsFlyer. In fact, he adds, it has become a core part of many apps’ engagement and retention strategy, and a proven way to boost user experience. According to him, the potential positive impact of gamification is significant given how popular mobile gaming has grown to become.

“Mobile users are spending four to five hours a day in apps, and gaming makes up a big part of that: in 2022, there were 55.6 billion game downloads. It is clear that gaming resonates strongly with a wide user base, and so it makes sense for app owners to incorporate gamification elements in their marketing campaigns to increase engagement, motivation, and brand recall. This is something that brands around the world have already demonstrated the effectiveness of. Certain mechanics, such as a gamified collection mechanic, can dramatically increase retention, just like McDonald’s did with their Monopoly campaigns,” explains Adam Smart.

He cites other successful examples such as Nike+ turning running into a game, Starbucks’ rewards programme, Duolingo making language learning fun, and Sephora’s Beauty Insider programme rewarding customers with points for purchases.

“Even Vitality, a health insurance company in the UK, has brought gamification to the healthcare market. Gamification is powerful because it awakens curiosity, fosters competition, and creates a sense of control. With it, brands have the potential to foster interaction, loyalty, and data collection, making campaigns more memorable and effective,” says Smart.

Ashwin Haryani, Country Head - India at Ampverse, emphasises that incorporating gaming elements elevates user engagement by infusing interactions with fun and interactivity. Additionally, he adds, these gaming elements possess the capacity to significantly enhance brand recall. The integration of gaming elements goes beyond mere enjoyment; it can also prompt users to take specific actions desired by brands.

Haryani cites the example of brands like Starbucks and Nike, which use gamification to drive customer loyalty, engagement and sales boost. According to him, these brands gamefy the experience over their apps, which in turn give a user loyalty points.

“For example, Nike credits users with loyalty points if the user does some activity like running. Another example is our own activation of college ‘Rivals’. Our entire campaign works on gamification. We have different gamified activities at our activation areas, that is, college campuses. Users can visit and take an active part in any activity like Playing 1v1 in our gaming truck or participating in on-ground activities like Quizzes, for which in return they receive rewards,” he adds.

Casual gaming or e-sports?

Will it be casual gaming or e-sports brands that will find effective entry points into the gaming community?

Adam Smart points out that both casual gaming and e-sports brands have the potential to effectively tap into the gaming community. According to him, the effectiveness with which they are able to do so depends on the brand’s goals, target audience, and marketing strategy.

“E-sports, with its engaged audience and targeted demographics, provides opportunities for sponsorships and association with competitive gaming. The choice depends on the brand's goals and target audience since these are two different communities with very different personas. We are currently entering a fascinating era in the gaming industry, where PC and console studios are venturing into in-game brand advertising, akin to the longstanding practice of product placement in movies. I am optimistic that this trend will create new opportunities for brands to synergize with the gaming experience,” Smart explains.

Ashwin Haryani notes that the gaming community represents a diverse group of individuals united by their love for gaming, encompassing both casual gamers and enthusiasts of competitive e-sports. Navigating the distinction between the two can be both challenging and straightforward, as the popularity of specific games often plays a defining role.

A notable example he cites is the viral phenomenon of “Among Us” a year ago, where the game garnered massive attention, attracting players from the e-sports community despite its inherently casual nature. This highlights the dynamic nature of gaming preferences, where the lines between casual and e-sports gaming can blur.

Haryani draws attention to the unique case of college e-sports in India, particularly with initiatives like “Our College Rivals”, the country’s largest e-sports talent hunt. Here, the observation is that college students, initially inclined towards casual gaming, actively engage in e-sports due to the perceived value it offers. This value varies from person to person, with some seeking ultimate glory, while others are enticed by the allure of substantial prize pools.

Ultimately, Haryani emphasises, the gaming landscape’s intricacies hinge on trends, publisher initiatives, individual perceptions of value, and a game’s ability to generate compelling content. This amalgamation of factors shapes the diverse preferences and active participation observed within the gaming community.

(Tomorrow: Part 2 of this report will focus on measuring the impact and the challenges of gamification on marketing.)