How Multicultural and Youth Consumers are Reshaping the Video Game Industry

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How Multicultural and Youth Consumers are Reshaping the Video Game Industry
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The stunning growth of video games and virtual reality within the entertainment industry is attributable to two core segments: youth and multicultural consumers. Brands need to understand how to leverage this passion point to activate these key segments as gamer culture continues to blend with the mainstream.

Please join us for the next webinar on April 1st, 2020: Leverage Asian-American Purchasing Power

By 2023, U.S. revenue from video games, eSports, and virtual reality entertainment will exceed that of either traditional cinema or over-the-top (OTT) video streaming. A massive portion of this spend will be due to multicultural consumers, the segment responsible for 94 percent of growth in video game expenditures between 2010 and 2017. But it’s not just multicultural America—81 percent of U.S. consumers play video games!

Here’s what this opportunity means for marketing strategies:

1. Representations of video games and gaming culture are increasingly important in advertisements portraying multicultural and youth segments.

2. Gaming-focused social media platforms, like Twitch and Mixer, offer new channels to communicate with a growing share of your target consumers

3. Gaming conventions and eSports tournaments, such as E3 and PAX, provide new opportunities to demonstrate a shared passion for this growing source of entertainment.

4. Gaming influencers can speak authentically and directly with tens of millions of online followers across both mainstream and gaming-specific media channels

Games and gaming devices present unlimited potential for branded content, in-game activations, advertising, and marketing innovation

As gaming rapidly becomes a mainstream form of entertainment media, it’s becoming increasingly important for brands to understand consumers as gamers—their video game related attitudes, preferences, and behaviors.

The first thing brands need to know is that video games present multiple opportunities to connect with and activate consumers. Much like OTT streaming, there’s an ever-growing list of titles and genres of games available across a variety of devices. And like traditional sports, individuals will sometimes play video games by themselves, and sometimes watch others play. And even when consumers aren’t engaging with video games directly, they follow gaming influencers, share gaming memes, and attend gaming conventions.

Brands also need to understand how to activate consumers through video games. From real-world influencer partnerships and eSports sponsorships to in-game branded content and “avatar activations,” getting video game marketing right requires knowing where your brand has permission to play, and which consumers you are likely to reach.


To provide Collage Group members with an introduction to video games and the consumers who enjoy them, in July 2019 we conducted a nationally representative survey of 1097 respondents, oversampling Gen Z, Millennial, Black, Asian, and Hispanic consumers across acculturation levels for precision within these segments.

Strategic takeaways from our research include:

  1. Gen Z gamers are more likely to watch casual streaming than eSports. Partner with the online/social media streamers delivering casual entertainment to this emerging consumer segment.
  2. Hispanic gamers are most likely to make gaming part of their social lives. Prioritize multiplayer and “party” games, as well as activations at gaming conventions, to reach Hispanic consumers.
  3. Younger gamers are more comfortable with branded content in their games. Think outside of the box! Look out for the opportunities virtual worlds present to show off your brand’s personality.

Understanding how multicultural and youth consumers approach entertainment media is essential for marketing to these already powerful and ever-growing segments.  If you are interested in having an initial conversation with our consulting team about methods to deal with this topic, please contact us directly.

Explore the Archive

Amplify Word-of-Mouth Impact in the New Wave

The New Wave—the young, diverse segment of Americans aged 18 to 39—value word-of-mouth and engage it more than older Americans. In this study, we share two steps and five tactics that brands should leverage to drive word-of-mouth in this segment.

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Collage Group Puts Brands and Ads at the Center of Membership in 2020

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Collage Group 2020: Putting Brands & Ads at the Center of Membership
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Three factors are leading us to change our research model to put your category, brands and ads at the center of everything we do.

Learn more about our 2020 research agenda and how our syndicated research platform can help you save money and time.

Factor 1. Every Brand Now Faces Three Moments of Truth with Multicultural America

When it comes to high likelihood that your next consumer is multicultural, ask yourself these questions. 

Do you really understand this consumer?  Do you understand her category-specific motivations, behaviors and needs?  And finally, are you activating with culturally fluent brand equities that drive cross-over appeal?

Factor 2: The Rise of the “New Wave,” The First Generation That is Intrinsically Diverse

We recognize that the evolving population dynamic in America has now firmly placed multicultural at the center of all marketing. It’s not just that Multicultural is big, it’s that Multicultural influences all other demographics.

This is especially true for the generation of Americans between 18-39, which we call the “New Wave.”  This generation is the first to grow up in what we call an intrinsically diverse environment.  While far more diverse, the New Wave share an orientation toward inclusion and diversity not seen in older generations.

And they are now rapidly increasing their spend.

Factor 3: The Cultural Fluency Imperative

Our mission is to help our members increase Cultural Fluency, not just better target specific ethnic segments.  Cultural Fluency is the ability to use culture to connect effectively and efficiently across segments.

We have therefore now invested heavily to offer three new research initiatives that place category, brands, and ads at the center of everything we do.

The Category Essentials: Insights into How Diverse America Views Your Category

With our sharp understanding of cultural variation at the category level, we can reveal distinctive behaviors, motivations, and usage patterns that arise due to culture.

We will extend the reach of our cultural attributes and group traits methodology to help brands better understand the efficiencies and opportunities that stem from putting culture at the center.

“AdRate and BrandRate:” Measuring the Cultural Fluency of Your Ads and Brands

Our vision is to build a database that measures the Cultural Fluency of both our member’s brands, their advertising and their category peers.

By building a database on the Cultural Fluency of America’s leading brands and ads we hope to motivate more inclusive advertising that drives up Cultural Fluency across every category. Using AdRate and BrandRate to measure performance is a critical first step to Cultural Fluency.

Cultural Fluency Solutions

Finally we recognize that even this new level of detail about your categories, brands and ads will not answer all your questions, nor should it. For this reason, we are upgrading our entire suite of custom engagements to put cultural fluency at the center, to extend the authenticity and impact of all your marketing.

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Amplify Word-of-Mouth Impact in the New Wave

The New Wave—the young, diverse segment of Americans aged 18 to 39—value word-of-mouth and engage it more than older Americans. In this study, we share two steps and five tactics that brands should leverage to drive word-of-mouth in this segment.

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Safeguard Your Brand Against Ad-wary Online Streaming Viewers

Safeguard Your Brand Against Ad-wary Online Streaming Viewers
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To effectively capture consumer attention, marketers must understand the ever-changing media landscape. Leverage these insights to optimize your ads for the modern TV consumer.

Don’t Miss The Next Webinar

Appeal to Gen Z and Millennial Passions

March 12, 2020

As internet speed and viewing options continue to increase, more consumers are opting for online over-the-top (OTT) streaming services. One result of this is that viewers are consuming media in more contexts: on the-go, at home, alone, with company, and at all hours of the day. These different contexts directly affect how, where, and whether viewers see ads. Smart brands see this shift in how viewers consume media as an opportunity to tailor their marketing campaigns to optimize viewer impact.

The first step in this process is to recognize and activate on the crucial role cultural background plays when it comes to online streaming. We’ve identified six places where culture shows up that brands can leverage: content, consumer behavior, devices, advertising, language, and price.

One of the key ways that consumers are looking to customize their experienceespecially Hispanic and Black viewers—is by opting out of ads, even if this requires payment! Given consumer interest and the increasingly available option for consumers to opt out of ads, brands need to understand what sort of advertising consumers find engaging and are willing to watch.

So, what type of ads do people prefer?

  • – Across groups, people most appreciate ads that are “fresh.” This is crucial to stay relevant and capture attention in an over-stimulating, information-heavy world

  • – In terms of ad content, Hispanic consumers like when advertisements mirror the tone of what they’re currently watching so that it feels more like a seamless experience
  •  
  • – Multicultural viewers across the board are especially likely to enjoy ads that feature their favorite actors from the shows they’re watching

In addition to the content of the ads themselves, we see from the data below that almost half of all consumers, especially Black and Hispanic viewers, simply want the option to choose which ads they watch. Consumers have control over so many other aspects of their media-streaming experience that now active ad choice is becoming a desire and even an expectation.

Not only do consumers want to choose the ads they watch, they also have strong preferences around how they experience ads. When choosing their optimal ad breaks, most consumers prefer fewer but longer breaks so that their viewing is interrupted less often.

Within those longer breaks, Black and White consumers lean towards fewer and longer ad spots which indicates a desire for deeper narratives. On the other hand, Asian and Bicultural Hispanic viewers more heavily favor a host of shorter ads that take place consecutively during longer breaks. This may reflect a preference for fresh, eye-catching visuals over ad plot development.

The outlier here is Unacculturated Hispanic viewers, who prefer many short ads that happen during shorter, more frequent breaks. This group’s strikingly different preference merits a targeted advertising approach to keep them engaged.

Executional Strategies

In order to excel in this competitive advertising space, brands need to take notice of consumer demands and rise to the occasion! The following executional strategies illustrate emerging ad trends in digital media that align with consumer interests.

The first is a direction towards non-disruptive advertising formats that don’t distract the viewer from the content they’re enjoying. The underlying motivation here is to improve the advertising experience for viewers. Recent developments in this area include “pause ads” and “binge ads.”

  • Pause ads are advertisements that appear on the viewer’s screen when they pause what they’re watching. This non-intrusive approach takes advantage of the time when viewers aren’t actively watching their show and are least likely to mind seeing an ad
  • Binge ads are those that are targeted specifically to viewers who binge, or marathon, their content. When a viewer exhibits binge-watching behavior, streaming platforms can reward their high engagement with ad-free episodes “sponsored” by a brand

Binge ads work well across the market by playing into consumer behavior trends that already exist. As you might expect, binge watching is popular for pretty much everyone. More than two-thirds of each segment—except for Asian consumers—tune in for long spans at a time and will likely appreciate these relevant binge ads.

Secondly, a push towards interactive user experiences is bringing innovations like choice-based ads and shoppable ads.

  • – Choice-based ads permit viewers to choose which ads they want to see from a brand. This option gives viewers the flexibility to tailor their advertising experience to what’s most relevant for them

  • – Shoppable ads
     allow viewers to learn more about brands and streamline the process of buying products featured in advertisements. This includes scannable QR codes or information sent directly to a mobile number or email associated with the viewer’s account

As you can see, there are many distinct nuances in media preferences and behaviors across cultural segments. Knowing your audience will help you meet them where they’re at. When you’re strategizing for your next media advertising campaign, keep these key takeaways in mind:

      1. Consumers most prefer ads that are “fresh.” Incorporate of-the-moment trends into your advertising to capture the attention of viewers across the board
      2. Most viewers want fewer but longer ad breaks. Aim for a “sweet spot” of medium-length ads to appeal to the general audience, or take a targeted approach for specific segments by altering ad length to fit their preferences
      3. Take advantage of innovative advertising formats emerging in OTT media. Consumers are eager to experience things in a new way, and many of these new formats will improve their overall viewing experience, like binge ads

More From The Insight Scoop

How Multicultural and Youth Consumers are Reshaping the Video Game Industry

The stunning growth of video games and virtual reality within the entertainment industry is attributable to two core segments: youth and multicultural consumers. Brands need to understand how to leverage this passion point to activate these key segments as gamer culture continues to blend with the mainstream.

Amplify Word-of-Mouth Impact in the New Wave

The New Wave—the young, diverse segment of Americans aged 18 to 39—value word-of-mouth and engage it more than older Americans. In this study, we share two steps and five tactics that brands should leverage to drive word-of-mouth in this segment.

Amplify Word-of-Mouth Impact in the New Wave

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Amplify Word-of-Mouth Impact in the New Wave
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The New Wave—the young, diverse segment of Americans aged 18 to 39—value word-of-mouth and engage it more than older Americans. In this study, we share two steps and five tactics that brands should leverage to drive word-of-mouth in this segment.
 
As part of our 2019 Roundtable research, we took a deep dive to understand what drives word-of-mouth influence in the New Wave, the young, diverse segment of Americans aged 18 to 39. We found that New Wavers are much more likely to rely on word-of-mouth when seeking out new products than their older counterparts. And it’s become an expectation and necessary step on the path-to-purchase for many of these young, diverse consumers.
 

Learn about our 2020 research agenda and how access to our syndicated research platform can help your brand connect with the New Wave.

The New Wave is also more likely to engage in word-of-mouth—both online and offline! This is good news for brands—it means you don’t have to work as hard to get these people sharing. The challenge, of course, is making sure that when they share it’s about your brand, and that sentiment is positive.

Our 2019 Roundtable research provides two steps to keep you top-of-mind and at the center of discussion.

  1. The first step is to quantify influence so you can identify the most influential segments in the new wave. We employ two methods to help you quantify influence and identify segments to target. The first uses factor analysis to identify the segments most likely to exhibit attitudes and behaviors related to word-of-mouth.  The second uses an ego-based social network analysis to understand how far influence is likely to spread given the makeup of each segment’s social networks.

  2. The second step is to activate the New wave to share. We provide two tactics to help you amplify word of mouth in the most influential New Wave segments and three tactics to drive word-of-mouth across all New Wavers.

Download the attached PowerPoint deck for insights and executional examples to help you harness the influence power of the New Wave.

If you are interested in joining peer-to-peer calls with non-competitive members to share insights and discuss strategies to manage this issue, exploring custom qualitative or quantitative research for your brand or category, or having an initial conversation with our consulting team about methods to deal with this topic, please fill out the form below. 

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Amplify Word-of-Mouth Impact in the New Wave

The New Wave—the young, diverse segment of Americans aged 18 to 39—value word-of-mouth and engage it more than older Americans. In this study, we share two steps and five tactics that brands should leverage to drive word-of-mouth in this segment.

New Year, New Multicultural New Year’s Insights

New Year, New Multicultural New Year’s Insights
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The New Year’s holiday offers brands a wide range of opportunities to activate Multicultural Americans. Read the research to deepen understanding of how these diverse consumers celebrate the holiday and how best to activate them. Check out the free, digital version by filling out the form.

As we begin this year’s holiday season, it’s important to keep in mind that opportunities to activate consumers continues right through the New Year! New Year’s Eve provides brands an opportunity to be a part of the party, while New Year’s resolutions are a chance to help consumers meet their newly-stated goals in the months to come. To maximize the value of  New Year’s marketing campaigns, check out our New Year’s multicultural insights deck and the three high-level takeaways below.

  1. New Year’s is celebrated by most Americans across all ethnic groups, though Hispanics are particularly likely to enjoy the festivities. Americans 65 and over are less likely than younger generations to celebrate.

2. Although sparkling wine is typically a toasting drink to usher in the new year, other alcoholic beverages play a prominent role in the celebration. Hispanic consumers are most likely to drink beer during their celebrations, while Black consumers are most likely to drink liquor/spirits.

3. When it comes to New Year’s Resolutions, multicultural Americans are much more likely to set goals for their new year. Those resolutions are more likely to be related to relationships and finances than the resolutions of their White peers.

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’Tis the Season for Insights into Consumers’ Christmas Attitudes and Behaviors

’Tis the Season for Insights into Consumers’ Christmas Attitudes and Behaviors
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Christmas is a widely celebrated and much-loved holiday across racial and ethnic segments. And the associated spend is massive—more than 1 trillion dollars in 2018! Brands should go big during this festive season to ensure they capture their share of America’s increasingly diverse population.

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Win the New Wave of Consumers

November 19th, 2019 | 2PM

Our recent research on holidays identifies the major similarities and differences in how consumers across racial and ethnic segments think about and celebrate Christmas. Brands should use these learnings to ensure their Christmas activations have wide reach and resonate deeply. Get in the holiday spirit with these three takeaways, and make sure to download a sample of the research, below

1. Across segments, most consumers’ Christmas celebrations include family time, food, and gifts. Brands can have mass appeal by activating on these shared elements.

From your personal experience, what do you need to celebrate Christmas properly?

2. Even though common elements appear across segments, culture shapes how consumers celebrate Christmas. For example, many Hispanics’ biggest celebration is with family on Christmas Eve (Nochebuena), not Christmas day. And Hispanics of Mexican descent often enjoy tamales during this gathering. Brands can differentiate themselves by showing consumers how their product(s) naturally support culturally-specific celebrations.

The way I celebrate Christmas is different from a typical “American” Christmas.

3. While Christmas stems from a common religious heritage, the expression of faith can vary widely. For example, Black consumers are more likely to pray, while Hispanics go to church. In order to achieve an authentic portrayal of Christmas, reflect the nuances in faith for each segment.

From your personal experience, what do you need to do to celebrate Christmas properly?

Download the research.

Pass the Plate: Thanksgiving Research

Help Yourself to a Second Serving of Thanksgiving Insights

Our latest research on Holidays and Occasions identifies where segments differ in their Thanksgiving attitudes and behaviors. Commonly associated with family time and eating turkey, this holiday actually has segment-specific nuances that brands must understand in order to win multicultural consumers. 

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Win with Experiences – Adapt to How Diverse America Engages Through Holidays and Occasions

November 13th | 2PM

Here are three key insights from our findings that will help your brand authentically and effectively connect with multicultural consumers on this special day. Scroll down to download a sample of the research.

1.

African Americans’ have bigger Thanksgiving celebrations and incorporate more non-food elements. Use activities like watching football and watching a parade as opportunities to connect with the segment. Reflect the wide array of activities in your content to show you understand them.

What do you need to do to celebrate Thanksgiving properly?

2. 

Both Hispanic and African Americans are more likely to involve non-family members in their Thanksgiving celebrations. Highlight the friendship and community component of Thanksgiving when activating with these segments.

Who do you celebrate Thanksgiving with?

3. 

Both Hispanic and African Americans see Thanksgiving as a time for reflection. Do not be flip in your activations—your message should clearly connect with the holiday’s spirit of gratitude and the many ways people recognize this.

What do you need to celebrate Thanksgiving properly?

Download a Sample of the Research.

Trick or Treat: A Deep Dive into Halloween

Trick or Treat: A Deep Dive into Halloween
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Boo! Halloween is quickly approaching and many brands are putting the finishing touches on their spooky holiday campaigns. Use the following insights to make sure your approach hits the mark with diverse America.

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Win with Experiences: How Young Americans Engage Though Holidays and Occasions

November 20th, 2019 
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HALLOWEEN affords brands the opportunity to activate in a lighthearted way, be they a candy brand or not. Our latest research on Holidays and Occasions includes a Halloween specific deep dive. Our research revealed interesting insights on how consumers’ perception of Halloween differ from their celebrations, and we have provided you with great brand activations that align with our insights.

1. There is a disconnect between people’s perception of Halloween and how they actually celebrate it. Celebrate all the preparations consumers make for Halloween, rather than just the “night of” party-related festivities.

2. Multicultural consumers are more likely to think that Halloween costumes are culturally appropriative. When activating around Halloween, be careful about what costumes and identities you portray. Steer clear of costumes that involve tropes associated with minority identities.

3. Almost a third of each segment attends a haunted house during the Halloween season. Haunted houses afford brands an extended time period to activate with consumers on the Halloween theme.

Day of the Dead: A Time for Tradition

Day of the Dead: A Time for Tradition
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Take a deep dive into how consumers perceive Day of the Dead. This excerpt from Collage Group’s comprehensive Holidays and Occasions research reveals important insights into consumer perceptions of this predominantly Mexican holiday.

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Understanding America’s Cultural Transformation

Wednesday, October 9th | 2:00 PM

Day of the Dead is an important Mexican holiday that often gets tacked on to Halloween advertisements. We heard from many brands that they do not completely understand this holiday or their right-to-play in the space. Our latest research on holidays and occasions helps elucidate how Day of the Dead differs from Halloween, how consumers celebrate it, and solid brand activations around the holiday. Download a sample of the research:

1. Hispanics who celebrate Day of the Dead perceive it as more traditional and religious than Halloween. Do not conflate Day of the Dead with Halloween. Day of the Dead activations should incorporate traditional and religious elements such as creating altars and visiting graves.

2. Day of the Dead is a predominantly Mexican holiday, and the way consumers celebrate varies by acculturation level. Utilize social media for low-cost, targeted activations that highlight acculturation-specific nuances in Day of the Dead celebrations.

This Is How Multiculturals Do Breakfast & Brunch

This Is How Multiculturals Approach Breakfast & Brunch
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Need to get your brand to the top of the morning? Read along and download the report to learn more about the nuances of what Hispanic, African American, and Asian consumers eat and drink for the most important meal of the day.

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Essentials of Hispanic Marketing 
September 11th, 2019
2:00 – 3:00 PM

In The Food and Beverage Revolution, we at Collage learned that convenience and health are the two factors driving breakfast decisions. But we wanted a second helping of insights that could go deeper into what choices multicultural consumers are making with their morning meals, as well as how they’re approaching the increasingly important occasion of brunch. To learn more, we asked a series of questions across two nationally representative samples, each with roughly one thousand respondents and multicultural/youth over-samples. These consumers gave us more than a taste of their breakfast and brunch behaviors.

1. African Americans have the largest gap between the perceived importance of breakfast and its actual consumption

2. Multicultural consumers are most likely to see brunch as an opportunity to “treat themselves”

Can you guess which segments complete each insight? Download a sample of the research to see the answers.

Hispanic, Asian, African American, White consumers eat the widest variety of breakfast foods, weekend or weekday
White, Asian, African American, Hispanic women prefer sweet and cold breakfast foods relative to men, but multicultural women do not