For years, social media and the gaming industry have become a separate powerhouse of their own. However, several tech companies are now investing to expand their digital ecosystems.
Social media giants have been finding ways to redefine user experiences across their platforms by integrating games. This expensive yet strategic move aims to boost user engagement and diversify revenue streams in order to stay at the top of the ever-competitive digital landscape.
The fusion of the gaming and social media industries presents a dynamic combination that can attract a broader audience and transform the way users interact within the platform. Here are some reasons why companies are willing to expand with games:
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Relevance
Social media is one of the fastest regions within the tech industry. Companies are challenged every day to stay relevant despite the saturated industry. By tapping into the demands of the gaming industry, they can adapt based on user preferences and behaviors.
Games are capable of ensuring that the platform remains exciting to a diverse audience. Aside from retaining existing users, it can also attract new users through this new feature. Adding games can provide various forms of entertainment and interaction, aside from the usual social media content.
Data Collection
The gaming industry is known for its meticulous way of gathering data based on the player's preferences, behaviors, and interests. Gaming companies are also capable of analyzing gaming patterns, in order to cater to the best possible experience for their consumers.
Although social media companies have their own practice of collecting data from their users, data from the integrated games can be used to enhance target advertisements. Moreover, they can utilize the data to improve content recommendations, algorithms, and personalized user experience.
Monetization
Social media companies have an added revenue stream through in-app purchases and advertisements. With games on board their platform, they will be opening a new opportunity to boost their revenue through monetization. As the companies develop new ways to diversify their revenue streams, the more they can make their business more resilient.
Partnership and Collaborations
Social media companies would have to make partnerships or collaborations with game developers in order to release exclusive content or features. The win-win agreement will allow both parties to take advantage of each other's strengths and resources in their field.
Aside from that, social media companies can take advantage of the existing fan base of the games by promoting and distributing them on their platform. The integration will create a cross-platform migration of audience, driving more downloads and engagements.
User Engagement
Most importantly, social media companies are always on the lookout for ways to ensure that their consumers are hooked on their platforms. Without new features and fancy entertainment options, a social media app can easily fade away in the background.
Big tech companies will most likely maximize user engagement by integrating games in order to increase the average time users spend across their platforms. As a result, this could open more opportunities for better advertisement and other income-generating activities.
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