Versus Systems thinks that unlike ads, earned rewards deliver higher digital advertising engagement

Versus Systems Inc (NASDAQ:VS) (CSE:VS) (FRA:BMVB) has a unique approach to digital advertising that yields better results for brands, apps and consumers.  "Data reveals two things very clearly: people hate ads, and people love rewards," according to Versus Systems founder and CEO Matthew Pierce. Based on these two key findings the Los Angeles-based video game software company is disrupting the conventional advertising landscape with an innovative choice/reward model. The company’s main focus is the esports and multimedia industry, where game developers use its WINFINITE platform to create competitions that provide players with the chance to win a variety of attractive prizes. The company which has offices in Los Angeles and Vancouver, has developed a business-to-business software promotions engine that allows publishers, developers, and creators of games, apps, and other interactive media to offer prize-based matches of their games to their players. Users and players can complete in-game or via in-app challenges to win prizes. Large swathes of the advertising industry are yet to wake up to the power of in-game advertising (IGA), but Versus is channeling its rewards platform to dramatically boost advertising engagement levels. Versus thinks that gamers should that no longer have to endure a 30-second advertising clip showcasing Domino's latest pizza promotion, but instead play to win Domino's latest pizza promotion. "Players choose a prize," explained Pierce. "They try to win it, and when they do, they love it. Brand affinity and recall improve. All the engagement metrics improve - transactions too. People love winning." In a nutshell, the company’s unique advertising platform helps brands engage millennial and generation Z gamers in a non-traditional promotional format to drive product trial, new customer acquisition, incremental sales, and superior ad spending returns. Power of in-game advertising White Castle, one of America's first fast-food hamburger chains with over 400 locations, partnered with Versus to introduce location-targeted rewards on the WINFINITE gaming platform to successfully demonstrate in-game advertising in action. The Columbus, Ohio-based burger maker was seeking to test alternative advertising channels to increase in-store traffic and trial new menu offerings. Versus selected an established racing game within its partner network which aligned with White Castle’s target consumer profile of 18 to 28-year-old males. According to Versus, the iconic burger chain did not dish out “wads of cash to trespass onto the screens of gamers, but instead approached gamers like a friendly neighbor bringing over a plate of cookies.” “Now replace the cookies with $1.99 burgers that can be won in real life by virtual race car drivers, and you find yourself with 37% conversions to in-store purchases, 280% growth in incremental purchases, a whopping 3.5 times Return on Ad Spend (ROA), and a whole new demographic of millennials contributing to your base,” noted a case study by Versus System. According to the company, the racing game developers were happy with the traffic brought to their game by the incentives paid for by White Castle. In turn, White Castle benefited from the additional purchases their new millennial consumers made on top of the $1.99 victory burger. Media is becoming interactive Versus spells out the future of media. "It's not just gaming - I think all media is becoming more interactive, and more personal," said Pierce. In February 2021, Versus announced a partnership agreement with Xcite Interactive, a world leader in interactive audience engagement, which will see audiences able to win real-world prizes while watching sports, playing mobile games, and watching streams on their TVs and mobile devices. Xcite’s technology has powered interactive media experiences for major sports leagues like the NFL, NBA, NHL MLB, and NCAA, as well as events like the Olympics, the World Cup, X-Games, Formula 1, and corporate events around the world. The company also recently signed a multi-year strategic alliance agreement with Sparx Technology Inc for rewards in live television events. Sparx will add Versus’ real-world prizing platform to the Sparx Participation Platform – a second-screen engagement tool used by global brands, events, and teams from the NFL, NBA, NHL, MLB, and more. The Sparx platform also works with broadcast clients, including NBC, ABC, Disney, and CNN. Sparx plans to use Versus’ platform to incentivize fans to play predictive, polling, and trivia games either at-home or in-venue, before or during the live event. The two companies plan to have their co-developed products on tap in early 2021. "The idea of winning prizes is as old as time but the idea of doing it in this way, at scale, is still not the standard," said Pierce. The Versus platform can be integrated into mobile, console, and PC games, as well as streaming media and mobile apps. Thanks to that reach, so far some half a million prizes have been awarded already. Rapid international expansion Meanwhile, Versus Systems executive chairman Keyvan Peymani is leading the firm’s international expansion. Peymani is bringing Versus proprietary rewards platform into existing relationships with Animoca Brands and iClick (NASDAQ:ICLK), while also developing strategic partnerships within the $36 billion Chinese gaming market and the $121 billion Chinese advertising market. “As online gaming and streaming surge around the world, new consumer behaviors are being created and will change the landscape for how brands reach their audiences irrevocably,” said Peymani. “Performance marketing tools will be critical for any advertisers wishing to remain relevant, and Versus Systems market-leading toolset and approach are the right solution presented at the right time.” Significantly, Versus struck a licensing deal with hardware giant HP in August 2019 that will see its technology used in a variety of HP products and services. OMEN Rewards is the result of a multi-year collaboration between HP and Versus Systems that has Versus’ patented prizing platform integrated into HP’s OMEN Command Center. OMEN Rewards allows everyone running the OMEN Command Center app to play their favorite games for real-world prizes, gift cards, trips, and experiences. “We have our growing global partnership with HP and our expanding into international territories,” said Pierce.  Contact the author Uttara Choudhury at uttara@proactiveinvestors.com Follow her on Twitter: @UttaraProactive