The COO and partner of digital marketing company Internet Media Services (IMS), Ignacio Vidaguren, spoke exclusively to NexTV News Latam about the commercial deal obtained by the company (a joint-venture with Sony Pictures Television) with leading US online gaming platform Twitch, with over 100 million members and over 1.7 million live and Video on Demand (VOD) contents.
– How did the alliance between IMS and Twitch take place?
In IMS we are always looking for innovative companies and brands from the digital world that have business models with advertising sales to partner and offer them to increase their business in Latin America. Twitch, in particular, belongs to Amazon, which bought it for almost one billion dollars, and has been growing in importance in the region in people within the world of videogames. To make a comparison, Twitch would like the ESPN of gaming. We are now completing assembling the teams that will do the monitoring and that will have specific trainings where Twitch will train our employees. For the first months, we will be offering companies special launching packages.
– What are the expectations of this commercial agreement?
Gaming is very important in countries like Mexico, Brazil, Argentina. Among Latin Americans there is a very active community in gaming. We do not have exact numbers but the size of Twitch in the region has a significant percentage. The audience for the category is large; it is a very interesting opportunity.
– Which are the areas where you will seek to focus penetration?
Brazil and Mexico are very strong, a combination of large markets in gaming, so at first we will put our focus there, but in a few months we will be starting with specific actions in Argentina, Colombia and Chile, besides regional sale strategies from Miami.
– What is the place occupied by Twitch and the gamer world in the online video market in Latin America?
For the gaming community, Twitch has a very interesting position. It is notable for two things: unlike the linear channels, online gaming audiences have a very active interaction with the players, live and almost hand in hand. Twitch also allows gamers to monetize their skills so that professional or amateur players with large audiences can benefit. They can handle the delivery of advertising very actively. For example, while playing, they can choose to display a video or advertising. Through segmentation mechanisms, brands decide in which games they are visible and this adds value to the audience by creating suspense or promoting products related to the theme of the game.
In addition, Twitch’s audiences are much more varied than one might think. Age representation is very wide and the relationship between men and women is 50-50. It has interesting possibilities in the future due to the connection of the community in real life, through the great gatherings such as fairs and events, which help brands to complement.
– What is the influence of new platforms and social networks anchored in video for the new market trends?
We are seeing very strong changes in consumer behavior. There is a decrease worldwide of people watching TV in the linear channel format to new VOD formats or streaming. For advertisers, although the video commercial is critical for creating “engagement”, the power to create audiences is extremely attractive, in a context with qualified audiences and specific contents, since it is non-invasive and is integrated into the dynamics of consumption.