In-game Advertising Market Size (2024 - 2029)

In-game Advertising Market Analysis

The In-game Advertising Market is expected to register a CAGR of 11.35% during the forecast period.

 In-game advertising market growth is anticipated to benefit from rising social and mobile gaming interest. Commercials, billboards, and backdrop graphics may be used in desktop and mobile games, including advertising. Additionally, because these ads aren't disruptive, gamers may experience the game more seamlessly. In-game commercials are anticipated to have a more substantial audio-visual impact and leave viewers with positive and enduring product impressions.

• Real-time bidding (RTB) and artificial intelligence (AI) are utilized to place these advertisements in online games. Previously, agents were responsible for purchasing and dealing with in-game promotions, which could be costly. However, programmatic advertisement buying has made the process more efficient and cost-effective by eliminating mortal involvement. In the traditional method, advertisers had to go through proposals, quotes, tenders, and negotiations with humans to purchase in-game advertisements. Conversely, programmatic in-game advertisement buying employs algorithms to acquire display space.
• Due to technological advances, digital advertising presentations can now connect to consumers' mobile devices, shifting them to companies' social media accounts or websites. Static advertising can also incorporate augmented reality for interactivity, attracting businesses to use these technologies in outdoor advertisements to increase awareness. In a London campaign, an augmented reality application connected to a digital screen showed a picture of a sick patient and an empty blood pack. Visual recognition activated potential donors with a needle and tube on their mobile screens, showing virtual blood flow and the patient visibly enhancing. These features make advertising attractive, contributing to the growth of the global in-game advertising market.
• People's increasing interest in social media, mobile gaming, and online casual gaming is predicted to drive the growth of the advertising segment in the global online casual games market over the forecast years. Furthermore, essential industry players' strategic acquisitions and business expansions are expected to enhance segment growth. In May 2022, WPP and Epic Games, the interactive entertainment firm developer of Fortnite and Unreal Engine, announced a new partnership to assist WPP agencies in delivering a new era of digital experiences for brands in the metaverse. A new training program will be launched to teach thousands of WPP creatives and engineers how to develop personalized brand experiences in Fortnite and use Unreal Engine for real-time 3D creation and virtual production.
• On the flip side, the placement of advertisements is a crucial aspect of in-game advertising, as it must align with the game's flow and context. It is essential for advertising companies to strategically place advertisements in a manner that appears natural to gamers and delivers exclusivity to advertisers. Unfortunately, some advertising companies fail to do so, showing disruptions in the gaming experience and adverse effects on advertisers' brands. For example, displaying sports-related ads in food-themed games would be an inappropriate placement.

In-game Advertising Industry Segmentation

In-game advertising is the phrase used to describe any state of advertising in a Video Game. In-game advertising can be a very compelling form of marketing as gamers are typically young and spend a lot of time recreating video games. In addition, the nature of video games means that in-game ads have to compete with only other elements within the game for attention from players.

The in-game advertising market is segmented by type (static, dynamic, advergaming) and by geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa).

The market sizes and forecasts are provided in terms of value USD for all the above segments.