OMD China has launched the fourth edition of its ongoing research series, Rhythm, with the latest report entitled Gamers. The study provides marketers with an in-depth understanding of online gamers in the People’s Republic of China, as well as examines the effectiveness of in-game advertising. In recent years, online games have become a mainstream form of entertainment across all ages, especially those played on mobile phones. Research reveals that there are 626 million online gamers in China, resulting in an increasing number of brands exploring the potential of this medium. While most brand promotion is currently either through in-game advertising or content sponsorships, there is still much to uncover about gamer behaviours and the effectiveness of advertising to this audience.

1. GAMERS

2. The gaming world has experienced
exponential growth in China

3. There are now
626 milliononline gamers
nation wide
Data source: GPC & CNG

4. The gaming world is very complicated to outsiders
Adventure
5%
Music
5%
Strategy
7%
Action
7%
Role-playing
8%
Racing
8%
Puzzle
11%
Sports
4%
MOBA(E.g Dota, LOL)
16%
Shooting
16%
1
Card
16%

5. This doesn’t prevent brands from cooperating with
popular games
2

6. 3
For how long
dotheyplaygames
every day?
What’s their
gaming
frequency?
Why do gamers
play games?
With what type
of games
to cooperate?
Are gamers all
young people？
Which ad format
is more
effective？
Many questions still prevail

7. 4
What’s the truth
about gamers?
Undo the myths and
discover the truth
Deep dive into
the motivation
behind gaming behavior
Analyze the effectiveness
of different ad
formats in games
What are their
gaming habits？
Which ad formats
are effective
for gamers?
To understand the landscape, we need to dive further into
games and in-game advertising

8. 5
OMD proprietary research
Qualitative
50 samples
Age 15-45
SH,BJ,GZ,CD,WH
Virtual Lab
600 samples
Age 15-60
City cover tier 1-4
Online survey
Quantitative
with
Other data sources
We conducted an exclusive research and leveraged data sources
to undo the myths

9. Undo the myths and discover the truth
Deep dive into the motivation behind gaming
behavior
What are their gaming habits？
What’s the truth about
gamers?
Analyze the effectiveness of different ad formats
in games
Which ad formats are effective
for gamers?
6

10. 7
Gamers are
mostly young men
with a low income
Gamers are
addicted to
games
Gamers invest
a lot on games
Gamersseclude
themselvesathome
andspendmostof
theirtimeplaying
Playing games
has no real
benefits
Stereotypes have shaped people’s perceptions,
but are they true?

11. 8
FACT
MYTH
Gaming is a universal
phenomenon
Gamers are mostly young
men with a low income

12. 45-54
12%
35-44
18%
25-34
25%
15-24
41%
55+
4%
9
The average age of gamers is
31-years-old
Data source: CNRS 2017: Gamer: played online games in last 7 days

13. 10
Female
41%
Male
59%
Females form 41% of the gaming
population
Data source: CNRS 2017: Gamer: played online games in last 7 days

14. Gamers are financially better off than
the average population
11
Monthly Income
Gamer Non-gamer
14,490
Avg.HHI
Data source: CNRS 2017: Gamer: played online games in last 7 days
Avg.PI
13,567
6,679 6,559

15. 12Data source: https://www.esportsearnings.com/players
China top ten E-sports Players
overall prize money
Lu Yao 15,398,279
Xu Linsen 14,691,421
Li Peng 13,692,958
Zhang Yiping 13,523,565
Zhang Ruida 13,523,164
Chu Zeyu 13,403,792
Zhou Yang 13,394,648
Zhang Ning 12,498,065
Chen Zhihao 12,067,281
Zeng Hongda 11,923,980
Some E-sports players have very high incomes

16. 13
FACT
MYTH
Most gamers have a
balanced lifestyle
Gamers are addicted to
playing games

17. 14
Traveling and sports are
also among their favorite activities
Gaming
Travel
Sports
OTV
Reading
Watch TV
Go shopping
Meet with friends
Go to the cinema
Watch short videos
KTV
Live show/Music concert
Go to exhibition
2%3%
3%
5%
5%
5%
5%
6%
10%
16%
38%
1%
0%
Only 38% of gamers consider gaming a primary
choice of entertainment

18. 15
1-2 times
per week
10%
5-6 times
per week
17% once
per day
20%
More than
once per day
36%
3-4 times
per week
17%
44% of gamers play less than once a day

19. 16
Average time spent per day in gaming
100
minutes
30%
Less than
1 hour
1-2
hours
2-3
hours
3-4
hours
4-5
hours
5+
hours
36%
19%
8%
4% 2%
105
minutes
Data source: OTV time spent is from iResearch
Average daily time spent on gaming is similar to that of
watching videos

20. 17
FACT
MYTH
Gamers play games
everywhere
Gamers seclude themselves
at home and spend most of
their time playing

21. 18
Occasions of playing games93%
80%
70%
58%
56% 53% 51% 50% 49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Weekend
at home
After work
/class
at home
/dorm
After
meal
Lunch
break
Waiting for
bus/taxi
/metro
Friends
gathering
Waiting for
meal
/dishes
During
work
On the way
to
office/school
Gaming transcends occasions and
locations to fill every possible free time

22. 19
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
After work
/class at home
/dorm
After meal On the way to
office/school
Waiting for
bus/taxi/metro
Lunch
break
Friends
gathering
Waiting for
meal/dishes
During
work
OthersWeekend at
home
Portable devices play a role in allowing gamers to
play everywhere
VR Mobile Tablet Hand-heldPC TV

23. 20
Over 354thousand gamers attended 2018 China Joy
Offline gatherings and events further extend the gaming
experience
Data source: http://wenhua.youth.cn/whdj/201808/t20180808_11692157.htm

24. 21
FACT
MYTH
Gamers are prudent when
spending
Gamers invest a lot on games

25. 22
Even though
65%
of them invest in games

26. 23
Monthly
Average
129 rmb
Paid games In-game purchase
Monthly
Average
119 rmb
0-100
10%
5000+
5%
2000-5000
15%
1000-2000
18%
500-1000
17%
101-500
35%
2000-5000
10%
5000+
5% 101-500
35%
101-500
37%
500-1000
18%
1000-2000
16%
The amount invested was only 2% of their monthly income

27. Budget for gaming is low
Trade time for strength
Equipment is not practical to enhance game experience
The game is not good enough to pay
Other same type of free games
Low odds of winning
Ugly game skin
Others
41%
32%
24%
22%
19%
14%
5%
3%
24
Reasons for not making in-game purchases
They are prudent in their gaming spends

28. 25
FACT
MYTH
Games benefit gamers’ life
Playing games has no
real benefits

29. 26
To kill time
To relax
Have fun
To release pressure
Get sense of achievement
Interesting to interact with other people
Easy operation
Feel excited
Enjoy teamwork
Delicate picture
Wake me up
Daily socialization
Empathy
Like uncertainty
Learn with fun
51%
49%
44%
43%
38%
29%
24%
24%
23%
23%
22%
21%
21%
14%
11%
Why do you play games?
The motivations for gaming are not limited to having fun

30. Gamers play for
a sense of achievement
38% of gamers play for
sense of achievement
I only play the leader position
in Dota 2. Because that makes me
feel like I am the super hero to
save the world.
—— Guangzhou, 20-year-old female
SSR Card
Penta kill
World’s first down
27

31. 28
Online games are dynamic and keep updating.
The interaction among players are strong.
Playing together is fun！
—— Chengdu, 17-year-old male
From off-line PC game to online games,
My roommates and I teamed up and played together.
—— Wuhan, 20-year-old female
I played with classmates and relatives. We had a lot fun together.
—— Wuhan, 26-year-old male
And to broaden their social
network through games
Enjoy
teamwork
23%
Have topic for
daily social contact
22%

32. 29
Game is a complete and virtual world to me. It extends
the real world, allowing me to experience those legends
and characters which are not existing in the real world.
——Wuhan, 33-year-old male
Game is my best friend, the place I make new friends, and the way
I release pressure. In gaming world, I can do whatever I want.
No one controls me. It gives a whole new view to the world and
unlimited imagination. I feel like I’m part of the world in game,
a powerful and confident new me, who is totally different from the
little and week me in the real world.
——Wuhan,34-year-old female
Furthermore, gaming offers experiences unavailable in real life

33. Deep dive into the motivation behind
gaming behavior
Undo the myths and discover the truth
What’s the truth about gamers?
What are their gaming
habits?
Analyze the effectiveness of different ad formats
in games
Which ad formats are effective
for gamers?
30

34. 31
Device priorities
Gaming life-cycle
In-game purchases
Relationship with games
01
03
04
02
We will explore the following gaming behaviors

35. 32
01 Device priorities
Smartphones have accelerated
the popularization of gaming

36. Family
Computer
Personal
Computer
Online PC Mobile
Multiple
Devices
33
Continuous device upgrades have revolutionized
gaming experiences

37. 34
Mobile
PC
Tablet
Handheld
TV
MOBA
64%
24%
7%
3%
1%
0%
Shooting
61%
27%
6%
2%
3%
0%
Cards
66%
27%
4%
1%
2%
0%
Puzzle
76%
20%
3%
1%
1%
0%
Racing
62%
25%
6%
5%
2%
0%
RolePlay
54%
38%
3%
3%
3%
1%
Action
45%
40%
3%
5%
5%
2%
Strategy
57%
31%
4%
3%
4%
0%
Music
79%
15%
3%
4%
0%
0%
Adventure
63%
25%
8%
3%
3%
0%
Sports
52%
36%
8%
3%
0%
2%VR
Among all available devices, mobile still dominates
all gaming categories

38. 35
Mobile PC Tablet
Mobile is favored for its convenience, while PC
and tablet are favored for viewability

39. 36
Handheld Device TV Games VR
Other devices take the lead because of their easier operation
and richer experience

40. 37
02 Gaming life-cycle
Gamers switch swiftly between games

41. 38
Average gaming stickiness is around 5.8 months
The penetration of stickiness
20%
1-3 month
9%
Above
2 years
9%
Within 1 week
9%
1-2 years
13%
2wks to
1 month
16%
3-6 month
12%
1-2 week
12%
half year to
1 year

42. 39
Reasons for
losing interest
Reasons for
long time stickiness
Boring and repetitive
Completed the final stage
45%
Noneedforlongtermtimeinvestment40%
High quality of production38%
People around me are playing38%
28%
The game is not popular21%
They look for diversity and innovation in new games

43. 40
03 In-game purchases
Gamers pay for enhanced experiences

44. Play paid games
(within or without in-game purchase)
99%
of them made
an in-game purchase
Play free games
(within or without in-game purchase)
41
Gamers who play paid games are more likely to make an
in-game purchase
49%
87%
of them made
an in-game purchase
78%

45. 42
Paid games
Monthly
spending
⁽Yuan⁾
Total
Male
Female
In-game
purchase
129 119
171 166
93 73
I spent 30 rmb to buy a character on Strike of the Kings.
The money was a reward from my team. I’m happy to
spend money on the games I like. I hope its company
can run well and keep developing games. The money
spent was worthy. I pay for my attitude.
——Beijing, 34-years-old male
I don’t like spending money in general. But if the money
was paid for the game quality, I’m happy with that.
——Guangzhou, 32-years-old male
Males spend double than females

46. What do you purchase in games?
Male female
Equipment/tool
Character skins
Characters
Membership
Unlock tricks
Pets
E-tickets
80%
78%
56%
56%
53%
50%
47%
53%
40%
55%
37%
43%
16%
27%
43
Both males and females buy for better visibility and
skills in games

47. Male female
Why do you buy character skins?
A good skin can attract other players to play with me 26%
24%
45%
32%
46%
52%
51%
44%
56%
61%
64%
33%
76%
60%
I can show off when the skin is limited or good looking
Skins with functions make gaming experiences more fun
I feel special when my charater looks different from others'
Collecting all of the skins of my favorite character brings me
a sense of achievement
The skins give my character a different look,
maintaining my character fresh
The skin is visually attractive, and the effect is exciting
44
Males are more attracted to visual appearances

48. 45
04 Relationship with games
Gaming has a significant impact in their lives

49. 46
Gaming makes me happy 87%
Gaming is a friend to me, it keeps me company 77%
It shelters me from reality 67%
Gaming is my soul mate, we grow together 65%
Gaming is intelligent and it's my mentor 63%
Gaming is family to me, we are always together 57%
To play is to win 47%
I feel lonely if I stop playing 40%
Benefits extend beyond entertainment

50. Fanart showcasing the leader
of the IG team, Wang Sicong,
eating a hot dog after the team
won the S8 championship
Strike of Kings punch line
“hold on, we can win”
is popular among non-gamers
“XXX, let’s go” is originally
a joke among LOL
live-streaming hosts. It quickly
became popular among
all youth on social media
47
Gaming jargon expands to the broader society

51. Data source: iResearch 2018 China Game Live Streaming Market Report 48
Online game live-streaming market size
Unit: Billion RMB
20
0
5
15
10
25
2014
0.43 1.17
3.21
8.7
14.1
19.2
2015 2016 2017 2018 2019e
Hosting live-streaming
is a new career choice for them

52. 49
Victory also gives them
a strong sense of pride
In 2018, the news of Chinese esports team IG
winning the LPL world championship without
losing one game broke through on social media,
firing up a riotous celebration among
the younger generation. It was the 8th year of
Chinese pro players attending the world’s
top esports competition, and their first time
winning the championship.

53. A profound relationship can be found
between gamers and games
A memorial statue named Wu Hongyu was
permanently set up to honor Wu's bravery and
love for the shooting game Overwatch.
Wu lost his life fighting a motorcycle thief the day
before the official launch of
Overwatch. His post “anyone waiting
for the release of Overwatch tomorrow?”
on WeChat became his last words to the world.
50

54. Analyze the effectiveness of different
ad formats in games
Undo the myths and discover the truth
What’s the truth about gamers?
Which ad formats are
effective for gamers?
Deep dive into the motivation behind
gaming behavior
What are their gaming habits？
51

55. 52
Completed Agree Somewhat agree Neutral Somewhat disagree Completed Disagree
0% 100%90%80%70%60%50%40%30%20%10%
It’s a good idea for brands to launch ads in games
Ads allow me to know more about the brand/product
Ads make me feel curious about the brand
The ads are memorable
Ads provide me with the opportunity to make friends
The ads are references for when I purchase
The ads are interesting
Ads provide the information I need
Gamers accept brand association and cooperation

56. 53
TVC including game element Offline store cooperation Product placement BTL events placement E-sports sponsorship
Placement in games Reward Ad Live Streaming Host cooperation Pop up / Banner ad
Awareness Interest Like Purchase
TVC with game characters is the best format, followed by
offline store and packaging cooperation
0%
20%
40%
60%
80%
100%

57. 54
0% 100%80%60%40%20%
T1 T2 T3 T4
Awareness
Interest
Like
Purchase
Tier 1 gamers are more influenced by offline store cooperation

58. 55
0% 100%80%60%40%20%
less than 5000 5000-9999 10000-14999
15000-19999 20000 or more
Awareness
Interest
Like
Purchase
E-sports sponsorship appeals to high value groups

59. 56
0% 100%80%60%40%20%
Student Non-student
Awareness
Interest
Like
Purchase
In-game placement has strong influence on student gamers

60. Implications

61. Although the gaming market reveals high potential for advertisers, gamers are quick
to switch between games, rendering even the most popular game outdated in a
matter of months. Brands face great challenges in considering what games to choose.
There are no doubts that mobile games are the first choice. Sponsoring a renowned
game will drive massive reach but it will be accompanied by a high price. Brands will
need to define both the roles of gaming cooperation and ROI expectations in their
media strategies before making a decision.
Considering ROI and the role of gaming cooperation before
making a choice
58

62. Compared to the sole sponsorship of popular games, formats focused on high reach
media out of games such as TVC or packaging with game elements and offline flash
stores prove to be more effective.
Brands will need to consider integrating game elements with advertising and products
to amplify media effectiveness. Different target groups have different preferences:
-Tier 1 gamers are more influenced by offline store cooperation.
-E-sports sponsorship appeals to high value groups.
-In-game placement has strong influence on student gamers.
Integration of game elements within advertising and products
is the most effective approach
59

63. 60
Gamers are willing to make in-game purchases when it comes to experience enhance-
ment, especially in visibility and valuable items. This presents an opportunity for
brands to engage with gamers.
When considering placements in games, brands can integrate with weapons, tools
and skins by infusing them with brand elements or run campaigns by linking sales
with rare in-game gains to drive conversion.
Integrating brand elements with in-game purchases
to drive conversion

64. Gaming is a universal phenomenon transcending gender and age. The benefits of
gaming go well beyond entertainment and leisure. Professional gamers fulfill their
dreams by playing games and earning a steady income. Victory in a competition is not
only about prizes either. To a larger extent, it is a reflection of their passion for gaming
and the glory of their country.
Brands can win gamers’ hearts and strengthen the emotional connection by infusing
the creatives and key messages with elements that portray respect and recognition
for the energy and enthusiasm gamers receive from games.
Convey respect and recognition for gamers within brand
communication
61

65. 62
Family
Computer
Home video game
console.
E-sports
A form of competition using
video games, particularly
between professional
players and teams.
S8
The eighth season of
professional League of
Legends world
championship
tournament.
China Joy
Asia's largest digital
entertainment expo &
conference held annually
in Shanghai.
IG
A multi-game esports
organization founded in
2011 in China, Their League
of Legends team won the
2018 League of Legends
World Championship.
Fanart
An artwork created by fans
of a work of fiction and
derived from a series
character or other aspect of
that work.
Gaming glossary

66. 63
MOBA
(Multiplayeronline
battlearena)
Real-time strategy game
where a player controls a
single character in a team
who compete versus another
team of players.
SSR Card
Super super rare card
with exordinary benefits,
usually the winning rate
of SSR card is below 1%.
Strike of Kings
A popular MOBA mobile
game developed and
owned by Tencent.
Penta kill
A situation in video game
to describe five champion
kills in short succession,
leaving the enemy nexus
exposed to shredding.
World’s first
down
When the mission
character, usually the big
boss, is killed for the first
time in the game
worldwide.
Character Skin
A graphic to change the
appearance of game
characters.
Gaming glossary

67. CONTACT US FOR MORE INFORMATION
Bhasker.Jaiswal@omd.com
Elena.Hu@omd.com
Maggie.Lin@omd.com