The Global In-Game Advertising Market size is expected to reach $12.1 billion by 2028, rising at a market growth of 10.1% CAGR during the forecast period.
Computer and video games both have in-game advertising. Advertisements are being interwoven into mobile and computer games. Pop-up messaging, on-screen commercials, cut-scenes, billboards, and backdrop displays are kinds of in-game advertising. Static (non-changeable) adverts, dynamic (changeable) commercials, and advergaming (a game developed as an advertisement) are all examples of in-game advertising.
The growing internet penetration is one of the primary factors driving the growth of the in-game advertising market. The rising popularity of social and mobile gaming is likely to boost the market for in-game advertising. Commercials, cut scenes, billboards, and background panels with in-game advertising can all be unified into mobile and desktop games.
Static IGAs, like product placement in movies, can't be modified once they've been coded into the game unless it's online. In contrast to traditional media, IGA enables gamers to engage with the virtual product. For example, In Splinter Cell, catching terrorists requires the use of in-game Sony Ericsson phones. Dynamic IGAs, unlike static IGAs, are not limited to a pre-programmed size or location defined by the developer and publisher and allow the advertiser to modify the advertisement display. To make a realistic gaming world, a number of games use billboard-like adverts or product placement. Many sports games include these adverts to mimic the massive advertising seen in professional sports.
IGA and advergaming have been widely accepted by the advertising industry as successful strategies to reach people aged 16 to 34. IGA is viewed as a key tool for reaching out to a generation of young boys who prefer to relax by playing video games rather than watching television. IGA is a specialty of several advertising firms or ad networks, and even more than conventional advertising agencies.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google LLC, Electronic Arts, Inc., Activision Blizzard, Inc., ironSource Ltd., WPP Plc, Motive Interactive, Inc., Playwire LLC, RapidFire, Inc., and Anzu Virtual Reality Ltd.
By Device Type
Computer and video games both have in-game advertising. Advertisements are being interwoven into mobile and computer games. Pop-up messaging, on-screen commercials, cut-scenes, billboards, and backdrop displays are kinds of in-game advertising. Static (non-changeable) adverts, dynamic (changeable) commercials, and advergaming (a game developed as an advertisement) are all examples of in-game advertising.
The growing internet penetration is one of the primary factors driving the growth of the in-game advertising market. The rising popularity of social and mobile gaming is likely to boost the market for in-game advertising. Commercials, cut scenes, billboards, and background panels with in-game advertising can all be unified into mobile and desktop games.
Static IGAs, like product placement in movies, can't be modified once they've been coded into the game unless it's online. In contrast to traditional media, IGA enables gamers to engage with the virtual product. For example, In Splinter Cell, catching terrorists requires the use of in-game Sony Ericsson phones. Dynamic IGAs, unlike static IGAs, are not limited to a pre-programmed size or location defined by the developer and publisher and allow the advertiser to modify the advertisement display. To make a realistic gaming world, a number of games use billboard-like adverts or product placement. Many sports games include these adverts to mimic the massive advertising seen in professional sports.
IGA and advergaming have been widely accepted by the advertising industry as successful strategies to reach people aged 16 to 34. IGA is viewed as a key tool for reaching out to a generation of young boys who prefer to relax by playing video games rather than watching television. IGA is a specialty of several advertising firms or ad networks, and even more than conventional advertising agencies.
COVID-19 Impact Analysis
The COVID-19 pandemic is disrupting a number of businesses, including digital advertising. Businesses are rethinking their marketing strategy in light of the COVID-19 outbreak and discussing if now is the ideal time to run internet ads. COVID-19 has a favorable impact on the in-game advertising market because most end users now utilize digital devices to access the internet, and with the conclusion of the pandemic unknown, many businesses are preparing to move the advertising investments to digital platforms. Greater technology improvements, as well as growing consumer hours invested in internet gaming, are predicted to propel the in-game advertisement market.Market Growth Factors:
Increasing growth in number of mobile games
Growing acceptance of various mobile games all across the industry is being pushed by an increase in demand for in-game advertising. Marketers may now contact customers in a brand-safe environment due to in-game advertising. As a huge number of developers sold ad space to commercialize the content, there has been a rise in the proportion of free-to-play mobile games with in-game advertising. On mobile phones, tablets, wearable, PDAs, portable media players, and graphing calculators, mobile games are simple to play.Higher investment for in-game advertising and rising usage of internet
With the increased availability of fast and low-cost internet services, the internet is becoming more widely used. The internet is the most revolutionary and rapidly evolving technology. With the widespread use of cell phones for gaming purposes, internet penetration has increased. The number of internet users has grown in latest years. Over the past couple of years, many people have gone online for the first time each day.Marketing Restraining Factor:
Higher expenses and a dearth of creativity among game developer
Even if the cost of developing mobile games has fallen, averaging and mobile advertising deliver a costly campaign. Averaging games must employ novel tactics in order to develop interest and provide uniqueness in the game, which will set it apart from other games on the market. This will hold the player's interest for a longer period of time. This is due to the link between the two, the game generated must be pushed to improve awareness of the game, which will also inform people about the product.Device type Outlook
Based on the Device Type, the In-Game Advertising Market is bifurcated into PC/Laptop and Smartphone/Tablet. The Smartphone/Tablet garnered a significant revenue share in the In-Game Advertising market in 2021. These gadgets is highly popular among the young and employed population. This is because smartphones are portable i.e., easy to carry and simple to handle. Manufacturers of smartphones are making changes in order to make it more user friendly as well as beneficial for game developer and advertising agency.Type Outlook
Based on the Type, the In-Game Advertising Market is divided into Static Ads, Dynamic Ads, and Advergaming. The Static Ad segment acquired the highest revenue share in the In-Game Advertising market in 2021. Advertisements that do not alter are known as static ads. Some promoters employ static advertisements to boost brand recognition and reach a big audience. It's easy to confuse a static ad with a dynamic ad when it contains a banner or adverts in video games.Regional Outlook
Based on the Region, the In-Game Advertising market is analyzed in North America, Europe, Asia-Pacific, and LAMEA. North America emerged as the leading region in the In-Game Advertising market with largest revenue share in 2021. This is due to the high sales of smartphones, PCs, laptops, and other electronic devices, the North American area is likely to grow. As developers increasingly use games as a medium of advertisement, the number of high-quality new games for tablets smartphones, and consoles are expanding.The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google LLC, Electronic Arts, Inc., Activision Blizzard, Inc., ironSource Ltd., WPP Plc, Motive Interactive, Inc., Playwire LLC, RapidFire, Inc., and Anzu Virtual Reality Ltd.
Recent Strategies Deployed in In-Game Advertising Market
- May-2022: Activision Blizzard formed a partnership with Tyroo Technologies, an Asia-Pacific ad tech platform. This partnership is expected to bring prospects for brands throughout regions to use in-gaming advertising and connect with players in a fan-first integrated advertising experience across mobile gaming.
- May-2022: Activision Blizzard came into a partnership with Livewire, a full-stack framework for Laravel that makes building dynamic interfaces. This partnership aimed to offer brands and marketers the ability to engage ANZ’s largest mobile gaming audiences, by blended in-game ads and custom creative implementations.
- Mar-2022: Anzu came into a partnership with Oracle Moat, ad measurement and marketing analytics suite. This partnership aimed to deliver advertisers with third-party viewability verifications and in-view metrics, calculating the percentage of the creative on-screen, the ad size, the time in view, and the angle. In addition, Oracle Moat is expected to work to verify impression delivery and detect invalid traffic throughout the running in in-game banner and video formats.
- Sep-2021: Anzu came into a partnership with HUMAN Security, the global leader in collective protection against sophisticated bot attacks and fraud. This partnership aimed to protect the in-game advertising space by detecting invalid traffic, general invalid traffic, and sophisticated invalid traffic within Anzu’s programmatic gaming inventory over mobile and PC.
- Jul-2021: Electronic Arts came into a partnership with Hi-Rez Studios, an independent video game company. This partnership aimed to display video advertisements within PC and console games.
- May-2021: Anzu came into a partnership with Bidease, a fully transparent demand-side platform for mobile marketers. This partnership aimed to enable Bidease to enhance advertising capabilities in the mobile gaming market and offer a wide advertiser network of non-intrusive cost-effective in-game ad formats. Moreover, advertisers is expected to have access to Anzu’s premium mobile inventory, comprising titles by Vivid Games and Next Wave Multimedia.
- Feb-2021: WPP formed a partnership with TikTok, a short-form video hosting service. This partnership enabled WPP clients to gain unique access and capabilities on the TikTok platform. In addition, WPP is expected to have early access to advertising products in development, ensuring WPP and its clients stay at the forefront of innovation as TikTok further develops its suite of products for brands.
- Nov-2020: WPP came into a partnership with Anzu, an ad-tech startup specializing in integrating advertising into video games. This partnership aimed to bring commonly accepted advertising standards to the esports and gaming space.
- Jul-2019: Anzu formed a partnership with CHEQ, a military-grade cybersecurity company. This partnership aimed to provide the first-ever ad-verification solution for console gaming. In addition, this partnership aimed to enable the dynamic serving of programmatic ads unified directly into game play, under a viewable, brand-safe, and fraud-free environment.
- Aug-2018: Google formed a partnership with Unity Technologies, a video game software development company. This partnership aimed to enable Google advertisers to directly access Unity’s global mobile gaming inventory. In addition, developers is expected to have access to a broader group of major advertisers across the world than Unity itself can reach through its advertising solutions, and that should aid developers to make more ad money as well.
Scope of the Study
Market Segments Covered in the Report:
By Device Type
- PC/Laptop
- Smartphone/Tablet
- Static Ads
- Dynamic Ads
- Advergaming
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Google LLC
- Electronic Arts, Inc.
- Activision Blizzard, Inc.
- ironSource Ltd.
- WPP Plc
- Motive Interactive, Inc.
- Playwire LLC
- RapidFire, Inc.
- Anzu Virtual Reality Ltd.
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 4. Global In-Game Advertising Market by Device Type
Chapter 5. Global In-Game Advertising Market by Type
Chapter 6. Global In-Game Advertising Market by Region
Chapter 7. Company Profiles
Companies Mentioned
- Google LLC
- Electronic Arts, Inc.
- Activision Blizzard, Inc.
- ironSource Ltd.
- WPP Plc
- Motive Interactive, Inc.
- Playwire LLC
- RapidFire, Inc.
- Anzu Virtual Reality Ltd.
Methodology
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