Gaming is quickly becoming a meaningful home for the future of philanthropy as gamers have significantly given back to charitable organizations over the past decade with no signs of slowing down. The community alone around Amazon’s streaming platform Twitch has collectively raised $145 million since 2011, including $42 million in 2019 (Source). Three converging factors within gaming help create an optimal landscape for charitable giving: (1) the Gaming Generation mindset, (2) streamers as influencers and (3) the microtransaction.
The Gaming Generation Mindset:
The Gaming Generation is primarily Gen Z and young Millennials ages ten to 29 years old. Even the oldest of this group were born into an age where there was a Nintendo game console in the house and Mario, Luigi, and Zelda were household names. The 90’s and 2000’s would usher in the rise of computer-based games in correlation with the rise of the personal computer and the internet.
For this generation, gaming is not only an engaging form of interactive entertainment but is highly social. This is where the gaming generation “hangs out” together, forms friendships and finds a sense of community. A Discord or Twitch chatroom is this generations’ mall and the type of video game genre you play can be part of your identity not unlike familiar albeit stereotyped identity groups such as “jocks,” “emos,” “hipsters” or “nerds.”
The gaming generation today lives in a world where age no longer defines the ability to have influence, spending power, earning power and even start a multi-million-dollar business. With ubiquitous access to the world and information, they have a more global view than previous generations and a more acute awareness of their responsibility as a member of a global society. As a result, they are a socially conscious generation who often seek to align with groups, moments, brands, individuals and influencers who support and give back to meaningful causes.
Streamers as Influencers:
Gaming and more specifically the live streaming of video games on platforms like Twitch has become one of the fastest growing forms of entertainment. Similar to influencers on social media, top streamers have audiences in the millions and even your average streamer has an audience approaching a hundred thousand. Unlike social media influencers, streamers have the rapt attention of their audience for many consecutive hours at a time while playing video games. And unlike a celebrity or star athlete who exists in an unobtainable realm, the streamer is seen as a fellow member of the gaming community and allows nearly 24/7 access to their lives on screen without a professional set, camera crew or other produced elements. The relationship between streamer and fan is highly interactive and plays out in real time with chatrooms allowing for two-way conversation not only between streamer and fan but also among the entire fanbase.
A streamer’s influence can be powerful and if they ask for fans to watch, purchase, support, donate or otherwise, their fanbase is eager to comply. In an even further show of support, fans eagerly and readily pay monthly dues through channel subscription models and through regular microtransactions such as Twitch Bits.
Microtransaction:
Microtransactions, a small amount of money paid in return for a digital or virtual good, proliferate across gaming and entertainment. In 2003, many labeled Steve Jobs crazy to believe someone would buy a digital copy of a song for $.99 and twenty years later, we hardly remember when we were willing to pay for an entire album physically purchased at a store. The gaming industry has taken this model even further as many of the most successful gaming titles today are free to play. Instead, revenue is generated from in-game purchases for only a few dollars or less. These purchased virtual goods often provide a game play advantage or sometimes simply a vanity item with no game advantage at all. One of the leading video games, Fortnite is a free-to-play game, yet in 2019 made nearly $2 billion from in-game microtransactions.
Streamers and streaming platforms also tap into the microtransaction and minimally priced subscription models. On Twitch, fans may subscribe to a streamer’s channel for monthly fees starting at $4.99/month, despite it not being a requirement to view and interact with the channel. Additionally, fans can show support with a payment of roughly a cent through a Twitch Bit, which provides in return the opportunity to use an animated GIF in the chatroom as a form of communication.
Charity Gaming Landscape Today
The socially conscious and empowered Gaming Generation, the powerful influence of streamers, an instantaneous microtransaction process, and a global gaming audience of 2.5 billion (source: Newzoo Global Esports Market Report 2019) has allowed those charitable organizations willing to dive into the gaming community an entirely new platform for successful fundraising. One recent example includes “Dr. Lupo,” a 32-year old streamer with 3.6 million followers, who in December was able to raise over $2.3 million for St. Jude Children’s Research Hospital in just 24 hours. (source)
The Muscular Dystrophy Association (MDA) is going beyond the one-off fundraiser with a year-round gaming strategy. For those a little older than the Gaming Generation, you might remember in the 1950’s, MDA founder Paul Cohen was early to recognize the power of the new medium of television when he pioneered the establishment of local telethons featuring a variety of stars to raise money. For 60 years the globally iconic MDA Labor Day Telethon with host Jerry Lewis was a staple of American culture and remains the most successful fundraising event in television history raising nearly $2 billion.
With a continued pioneer spirit for early adoption, MDA looks to the future of digital and virtual media as well as the next generation of supporters with their creation of MDA Let’s Play and its weekly hosted Game Nights. This program has created a growing community that provides a consistent touch point to a highly engaged, informed and compassionate community of patients and supporters creating multiple layers of benefit to those affected by neuromuscular diseases.
First and foremost, it creates a year-round support group where those living with neuromuscular diseases can have fun, explore creativity and create strong social connections with fellow patients, other gamers and supporters. Those affected do not have many opportunities to socialize with other patients and non-affected peers and in this time of COVID, due to their high risk for infection and complications, they are more isolated than ever before. The Let’s Play community has become a vital part of their daily lives and overall well-being.
Additionally, the Let’s Play gaming community and its weekly engagement of patients and gamers creates an unprecedented opportunity to generate awareness, understanding, empathy and support from peers and fellow gamers.
And finally, this community and weekly gaming activity creates year-round fundraising opportunities through gaming events and esports tournaments featuring streamers, talent and sponsor integration. These types of events from MDA Let’s Play and other charitable organizations also represent an easy and meaningful entry point for brands who are open to gaming and esports but not sure where to begin.
The growth of the gaming industry shows no signs of slowing down and as technology continues to make it easier and faster to make a transaction or donation, there is great hope for the future of charitable giving and the positive impact the Gaming Generation will make upon the world.
Lisa Jenkins is Vice President – Account Leadership at ESA member CSM Worldwide