The in-game advertising market is estimated to grow at a CAGR of 7.08% during the forecast period to reach US$221.511 billion by 2027, from US$137.266 billion in 2020.
In-Game Advertising (IGA) is the adoption of advertisements in the gaming industry, to help companies in marketing their products and services. With the increasing number of gamers among the audiences, the gaming industry provides a ready market for advertising agencies. Moreover, with the introduction and development of contextualized in-game ads, gamers can experience advertisements without the worry of interruptions in the gameplay.
Following the COVID-19 pandemic, the advertising market saw huge potential in the gaming industry. Due to the government-imposed lockdowns and remote-work norms, the gaming industry saw an inflow of consumers. The mobile gaming industry reported a significant increase in users, due to its accessibility and economic factors. This allowed the in-game industry to increase in size and demand as companies started to flood in for the industry. The in-game advertising industry is also expected to experience better technology, as companies develop better advertisement technology to improve the advertising consumption experience without interrupting the gameplay. Also, with the advancement in the virtual gaming industry and the metaverse, the in-game ad experience is expected to improve a lot.
With the growing adoption of smartphones and handheld devices, the mobile gaming sector has become a huge market in recent times. Mobile gaming provides its users with the ability to play games at any moment without the use of any other equipment. Following the COVID-19 outbreak, the in-game advertisement industry saw tremendous market opportunities in the mobile gaming sector, resulting in a rapid increase in market value. According to Hubspot, there are 2.2 billion mobile gamers globally, and this number is expected to increase by another million users by the end of 2023. The US accounts for about 203 million of these mobile gamers, and about 56% of them play more than 10 times a week. With this rapid adoption of mobile gaming among people, the in-game advertising market is expected to rise.
Evaluating the immense scope in the in-game advertisement sector, companies have started to pool their investments for the market. Investments in the sector would help develop a better and more interactive advertising experience for the gaming industry.
Admix has secured $25 million to develop its in-game advertising platform. Because businesses continue to target wealthy people who are increasingly playing games, the time is ideal. The current round of investment takes Admix's total funding to $37 million, making it the most by any "non-intrusive games monetization firm." Elefund, Force Over Mass, DIP Capital, Notion Capital, Speedinvest, Rocket Capital, Colopl Next, Sure Valley Ventures, Kuvi Capital, and Sidedoor Ventures are among the investors. This funding would help in developing a lot of opportunities for the advertising company.
Entravision, major worldwide advertising solutions, media, and technology firm, recently announced that it has chosen Anzu.io, one of the world's most advanced in-game advertising platforms, as its exclusive Latin American partner. Entravision will exclusively represent Anzu in 18 Latin American regions through its business unit Entravision-Cisneros Interactive, educating advertisers on the benefits of in-game advertising and allowing firms to use Anzu's award-winning solution for marketers, developers, and players.
Gadsme, a French IT startup that bills itself as the first in-game adtech platform to enable "immersive brand experiences" through in-game advertising, has received $8 million just 11 months after launching. As an outcome, it has received funding and direct creative collaboration from some of the greatest market players in gaming. Firms, including Ubisoft, were involved in the venture, which was led by interactive digital investment company Galaxy Interactive. Gadsme provides non-intrusive ad formats that are "blended, immersed, and organic to the gameplay," as well as being easy to configure and privacy compliant, allowing for appropriate advertisements to be presented to players across all devices, locations, and demographics. Due to the immense investment and developments in the sector, the in-game advertising market is expected to rise further.
Despite its enormous potential, in-game advertising has been virtually unexplored thus far. Advertisers have to come up with a new technique to present video game commercials. The mid-game or mid-video format of YouTube advertising was originally explored in mobile games. But video ads in between games interrupt the overall gaming experience.
The development of contextualized in-game ads is a better alternative to traditional video ads. Companies like Adverty and Bidstack have come up with real-world ads for games that are embedded into the gameplay and hence provide a better ad experience. However, there are still issues with in-game advertising. The criterion for determining viewability is still unsure. Advertisers sell ad space in part by guaranteeing viewability, which is why ads on television and the super bowl in the United States sell for millions of dollars. However, contextualized in-game ads cannot be measured based on viewability directly. A user might miss it subconsciously if they are not paying attention to the peripheral gameplay environment. Hence, companies cannot be sure about the reach of their in-game advertisements, which is why some companies are reluctant to invest in contextualized game ads.
Introduction
In-Game Advertising (IGA) is the adoption of advertisements in the gaming industry, to help companies in marketing their products and services. With the increasing number of gamers among the audiences, the gaming industry provides a ready market for advertising agencies. Moreover, with the introduction and development of contextualized in-game ads, gamers can experience advertisements without the worry of interruptions in the gameplay.
Market Trend:
Following the COVID-19 pandemic, the advertising market saw huge potential in the gaming industry. Due to the government-imposed lockdowns and remote-work norms, the gaming industry saw an inflow of consumers. The mobile gaming industry reported a significant increase in users, due to its accessibility and economic factors. This allowed the in-game industry to increase in size and demand as companies started to flood in for the industry. The in-game advertising industry is also expected to experience better technology, as companies develop better advertisement technology to improve the advertising consumption experience without interrupting the gameplay. Also, with the advancement in the virtual gaming industry and the metaverse, the in-game ad experience is expected to improve a lot.
Growth Factors
Prevalence of mobile games
With the growing adoption of smartphones and handheld devices, the mobile gaming sector has become a huge market in recent times. Mobile gaming provides its users with the ability to play games at any moment without the use of any other equipment. Following the COVID-19 outbreak, the in-game advertisement industry saw tremendous market opportunities in the mobile gaming sector, resulting in a rapid increase in market value. According to Hubspot, there are 2.2 billion mobile gamers globally, and this number is expected to increase by another million users by the end of 2023. The US accounts for about 203 million of these mobile gamers, and about 56% of them play more than 10 times a week. With this rapid adoption of mobile gaming among people, the in-game advertising market is expected to rise.
Investments in the sector
Evaluating the immense scope in the in-game advertisement sector, companies have started to pool their investments for the market. Investments in the sector would help develop a better and more interactive advertising experience for the gaming industry.
Admix has secured $25 million to develop its in-game advertising platform. Because businesses continue to target wealthy people who are increasingly playing games, the time is ideal. The current round of investment takes Admix's total funding to $37 million, making it the most by any "non-intrusive games monetization firm." Elefund, Force Over Mass, DIP Capital, Notion Capital, Speedinvest, Rocket Capital, Colopl Next, Sure Valley Ventures, Kuvi Capital, and Sidedoor Ventures are among the investors. This funding would help in developing a lot of opportunities for the advertising company.
Entravision, major worldwide advertising solutions, media, and technology firm, recently announced that it has chosen Anzu.io, one of the world's most advanced in-game advertising platforms, as its exclusive Latin American partner. Entravision will exclusively represent Anzu in 18 Latin American regions through its business unit Entravision-Cisneros Interactive, educating advertisers on the benefits of in-game advertising and allowing firms to use Anzu's award-winning solution for marketers, developers, and players.
Gadsme, a French IT startup that bills itself as the first in-game adtech platform to enable "immersive brand experiences" through in-game advertising, has received $8 million just 11 months after launching. As an outcome, it has received funding and direct creative collaboration from some of the greatest market players in gaming. Firms, including Ubisoft, were involved in the venture, which was led by interactive digital investment company Galaxy Interactive. Gadsme provides non-intrusive ad formats that are "blended, immersed, and organic to the gameplay," as well as being easy to configure and privacy compliant, allowing for appropriate advertisements to be presented to players across all devices, locations, and demographics. Due to the immense investment and developments in the sector, the in-game advertising market is expected to rise further.
Restraints
Measuring viewability
Despite its enormous potential, in-game advertising has been virtually unexplored thus far. Advertisers have to come up with a new technique to present video game commercials. The mid-game or mid-video format of YouTube advertising was originally explored in mobile games. But video ads in between games interrupt the overall gaming experience.
The development of contextualized in-game ads is a better alternative to traditional video ads. Companies like Adverty and Bidstack have come up with real-world ads for games that are embedded into the gameplay and hence provide a better ad experience. However, there are still issues with in-game advertising. The criterion for determining viewability is still unsure. Advertisers sell ad space in part by guaranteeing viewability, which is why ads on television and the super bowl in the United States sell for millions of dollars. However, contextualized in-game ads cannot be measured based on viewability directly. A user might miss it subconsciously if they are not paying attention to the peripheral gameplay environment. Hence, companies cannot be sure about the reach of their in-game advertisements, which is why some companies are reluctant to invest in contextualized game ads.
Market Segmentation:
By Ad Type
- Static Ads
- Dynamic Ads
- Advergaming
By Game Type
- PC/Laptop Games
- Console Games
- Smartphone/ Tablet Games
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Europe
- Germany
- France
- United Kingdom
- Middle East and Africa
- Israel
- South Africa
- Asia Pacific
- China
- Japan
- South Korea
- India
- Others
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. IN-GAME ADVERTISING MARKET, BY AD TYPE
6. IN-GAME ADVERTISING MARKET, BY GAME TYPE
7. IN-GAME ADVERTISING MARKET, BY COUNTRY
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
9. COMPANY PROFILES
Companies Mentioned
- Admix
- Adverty
- Bidstack
- Rapidfire Inc.
- Playwire Media LLC
- Gamelin Advergames
- Engage
- Ironsource
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 125 |
| Published | June 2022 |
| Forecast Period | 2020 - 2027 |
| Estimated Market Value ( USD | $ 137.27 billion |
| Forecasted Market Value ( USD | $ 221.51 billion |
| Compound Annual Growth Rate | 7.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 8 |
