Target Customers

While SIE is currently expanding into the personal computer (PC) and mobile space, its main source of revenue is still in the console space. That being said, of the total population of Brazil, the target customer pool would be the population of people that consider themselves to be gamers who play their games on a console. The visualization below shows the breakdown of Brazil’s population in its entirety, the population of the total that are gamers, and the numbers of people within that population that play their games on mobile, console, or PC—all stratified by sex.

To reach the target customer pool, as mentioned in the Promotional Event blog, it is recommended that SIE launch a social media marketing campaign announcing the Brazilian-exclusive State of Play program, and maintain the campaign for 2 months leading up to the day of the event. The event can showcase the opening of a new SIE office branch in Sao Paulo, Brazil, in addition to announcing some upcoming video games that will be released world-wide, but with emphasis on a simultaneous Brazilian market release, and an announcement of Sony-branded gaming products that will be given out for free in a Brazilian-only lottery or sweepstakes program. The digital marketing campaign can coincide with a real-world marketing campaign that would include the use of billboards, flyers, and posters in high-traffic areas, advertisement wrapping on public transportation, and advertisements on gaming-related YouTube videos. YouTube videos are used to promote video advertisements instead of television because 83.5% of gamers watch gaming-related content on YouTube (PGB, 2022).

Every advertising strategy will have a link to PlayStation’s official YouTube channel and the date and time of the event. The primary form of engagement with the community will be through the social media channels, as the community managers behind the PlayStation social media accounts can directly engage with the Brazilian community and drive even more engagement with the rest of its global community via its reach. Ideally, a chain reaction of engagement driving further engagement will occur, reaching critical mass a few days out of the event date. The event will continue to remain in local public consciousness due to the other advertisement strategies in place such as the flyers, posters, billboards, and buses. This should serve to bring the maximum amount of viewers to the PlayStation YouTube channel at the appointed time.

According to VentureBeat, for the period of June 1st to June 30th, 2020, Sony spent an estimated $14.7 mil airing 5 TV spots over 2300 times and generating 585 million TV ad impressions (Semeraro, 2020). Using these numbers as reference, a 2-month video format advertising campaign on YouTube would cost approximately $29.4 million. Billboard rentals cost in high-population areas cost approximate $15000 per month, bus wraps cost approximately $3000 a month, and flyers and posters cost a total of $2500 and $5000 respectively—in other words, $1250 and $2500 per month.

The most recent data on consumer spending on gaming in Brazil is from 2018; it states that $893 million was spent on gaming in 2018 between traditional and digital gaming (Statista, 2022). Dividing that value among the total population of males and females that consider themselves to be gamers, the amount spent per person per year on gaming is $11.27. Given the target population as the total population of male and female gamers that consider themselves to be gamers and play on console, through Bayesian analysis, this target population was determined to be an amount of 17103513. Multiply that amount by the gaming amount spent per person per year ($11.27) and the result is $192,755,592 in revenue over the course of a year if there is 100% customer spending as a result of the advertisement campaign. A 50% customer engagement rate is $96,378,290 within a year, or $8,031,524 a month. SIE will break even on investments and see profits at the 4-month mark. The visualizations below display a breakdown of the costs, the determining of the target audience, and the estimated ROI based on different time periods.

From the numbers in the above-posted tables, the ROI potential is very large per the advertising investment.

Next: Selected Sampling

References

(2022). PGB22 – Pesquisa Game Brasil – 9ª Edição Gratuita – 2022. PGB.  https://www.pesquisagamebrasil.com.br/en/

Semeraro, E. (2020, July 4). PlayStation’s The Last of Us Part II campaign boosts game TV ad spending in June. Venture Beat. https://venturebeat.com/2020/07/04/playstations-the-last-of-us-part-ii-campaign-boosts-game-tv-ad-spending-in-june/

(2022). Consumer spending on gaming in Brazil in 2014, 2018, and 2023, by platform. Statista. https://www.statista.com/statistics/716820/consumer-spending-gaming-brazil/

(n.d.). Projeção da população do Brasil e das Unidades da Federação. IBGE. https://www.ibge.gov.br/apps/populacao/projecao/

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