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Bidstack in demand as home working sparks surge in video game playing

Snapshot

"Disruption to the advertising industry, particularly in the out of home and live sports segments, is leading media buyers to seek digital alternatives for their brands.

BidStack Group PLC -

Quick facts: BidStack Group PLC

Price: 4.15 GBX

LSE:BIDS
Market: LSE
Market Cap: £16.08 m
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  • Specialist platform for in-game advertising
  • Forecast to be huge sector as gaming grows in value
  • Lockdowns have highlighted value of its software

What it does

Bidstack bridges the gap between gamers, game developers, and advertisers by enhancing the experience with rich, real-world advertising inserted into the games.

How it’s doing

In March, Bidstack Group PLC (LON:BIDS) has said its in-game advertising technology is seeing “high levels of inbound demand” from ad agencies as the coronavirus pandemic leads to record numbers of video gamers.

The AIM-listed said that it had also received “some exciting and unexpected commercial opportunities” as a result of the surge, highlighting that spending on video games in the US had soared 60% year-on-year in the week of 16 March.

Bidstack added that it is also working with a number of resellers in territories where it has no official presence to run programmatic and insertion order campaigns.

Video games have experienced a jump in demand as the pandemic has forced the cancellation of most live sporting events, leaving advertisers with large gaps in their schedules.

While the company said its business had suffered “some disruption” due to the cancellation of a number of trade shows and face-to-face meetings, its systems and procedures, as well as its technology-based platform, meant the business “is largely able to proceed as normal”.

"Disruption to the advertising industry, particularly in the out of home and live sports segments, is leading media buyers to seek digital alternatives for their brands.

It's no longer "business as usual" in these significant areas. 

Encouraging results

In April, the company highlighted a new Lumen Research report that shows its in-game advertising technology performed “impressively” in comparison to other advertising channels.

The study, which measured the success of an in-game campaign delivered by Bidstack for a leading automotive brand, found that 94% of gamers noticed the automotive brand's in-game ads, 2.6x higher than standard display advertising norms, while the time spent looking at the ad was also 1.5x longer.

Brand recall for the campaign was found to be 2.6x higher than standard norms and exposure to the ad also had a demonstrable impact on brand perceptions, Bidstack said, adding that the in-game placement resulted in significant uplifts in perceptions of the automotive brand being affordable and in recall of price messaging. Trust and positive brand perception were also notably higher after in-game exposure to the ad.

What the boss says: James Draper, chief executive

“Agencies need to innovate to assist their brand clients to reach targeted audiences. 

“Bidstack's technology enables them to do that.”

Inflexion points

  • Recent deals with Gfinity and Codemasters
  • People working at home is driving demand for games and in-game advertising
  • New game consoles also likely to provide business spurt

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