In-Game Advertising Market

In-Game Advertising Market Size:

The global in-game advertising market size reached US$ 7.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 17.9 Billion by 2032, exhibiting a growth rate (CAGR) of 9.54% during 2024-2032. The expanding use of video games as a form of entertainment, the growing penetration of the internet, the growing trend of digitalization and connectivity, and the quick development of ad technology are some of the major factors propelling the market.

In-Game Advertising Market Analysis:

• Major Market Drivers: One of the main factors driving the market is the rise in mobile gaming, which gives marketers access to a wide range of consumers. Furthermore, the expanding trend of free-to-play games, which rely on advertisements for income is also creating a favorable in-game advertising market outlook.
• Key Market Trends: In-game advertising is currently commonly employed on a variety of gaming platforms, including consoles, PCs, and mobile devices. It provides services to a range of businesses, including FMCG and automotive, which use in-game advertisements to test new marketing tactics and target particular demographics.
• Geographical Trends: The industry for in-game advertising is dominated by North America and Asia-Pacific due to their substantial gaming populations and strong digital ad spending. Moreover, as more people are playing mobile games, emerging economies like Brazil and India are also seeing growth in the in-game advertising market share.
• Competitive Landscape: Some of the major market players in the in-game advertising industry include Activision Blizzard Media Ltd., AdInMo Ltd., Adverty AB (publ), Anzu Virtual Reality Ltd., Bidstack Limited, Electronic Arts Inc., HotPlay, IronSource Ltd. (Unity Technologies), Playwire, RapidFire, Inc, among many others.
• Challenges and Opportunities: Ad blocking technology pose a challenge for the market along with increasing consumer concerns about data privacy. However, the in-game advertising market report identifies prospects such as virtual reality (VR) and augmented reality (AR) technologies, which can generate immersive and engaging advertisments that mix in with the gaming environment. These technologies enable advertisers to engage with consumers in more meaningful ways, integrating adverts into the game without interfering with the user experience.
   

In-Game Advertising Market Trends:

Increasing popularity of gaming

The in-game advertising market growth is significantly driven by the dramatic rise in the number of gamers globally due to accessibility to mobile gaming and the proliferation of gaming consoles and PCs. According to a study by Streamlabs and Stream Hatchet, Twitch , the world's leading livestreaming platform for gamers saw an 83% year-on-year uprise in viewership when the pandemic hit, with over 5 billion hours of content viewed in the second quarter of 2020 alone. This diverse, engaged audience is especially attractive for brands looking to target specific demographics such as young adults and teenagers, who are often difficult to reach through traditional advertising channels.

Rising popularity of e-sports

There are more opportunities for in-game sponsorships and advertising due to the growing popularity of e-sports competitions and game streaming on websites like Twitch and YouTube. Large audiences attend these events, providing advertisers with excellent exposure and interaction opportunities. According to research by BBC, 439 Million people worldwide watched esports events in 2020, a 10% increase from 2019. These platforms collect a ton of information about their users, including their interactions, viewing habits, and preferences. With the help of this data, advertising campaigns can be more relevant and successful by being highly targeted and catered to the audience's unique interests and demographics, thus escalating the in-game advertising demand.

Technological advancements

Over the years, more interactive and interesting ad formats have been made possible by advancements in gaming technology, including AR, VR, and AI. With the use of these technologies, advertisements are incorporated into the story or interactive aspects of the game in a way that adds to rather than takes away from the gameplay experience. Therefore, the growing market for augmented reality (AR), which is predicted to reach US$ 102.7 billion by 2032 and exhibit a growth rate (CAGR) of 27.2% during 2024–2032, and the growing market for virtual reality gaming, which, according to IMARC GROUP, is expected to reach US$ 313.5 billion by 2032 and exhibit a growth rate (CAGR) of 25.8% during 2024–2032, are creating a favorable in-game advertising market forecast.

In-Game Advertising Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type and device type.

Breakup by Type:

• Static Ads
• Dynamic Ads
• Advergaming
   

Static ads accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes static ads, dynamic ads, and advergaming. According to the report, static ads represented the largest segment.

Static advertisements are stationary commercials that fit in well with the gaming environment and give advertisers a discrete means of promoting their goods and services. This type of advertising can be simply incorporated into a wide range of gaming platforms, including PC, console, and mobile games, without requiring major modifications to the game's code or functionality. Apart from this, it also enables advertisers to reach a wide audience without being limited by technical limitations. Consequently, the need for static advertisements is increasing due to the increased popularity of gaming consoles. The global gaming console industry is anticipated to reach $40.3 billion by 2023, according to a report published by IMARC GROUP.

Breakup by Device Type:

• PC/Laptop
• Smartphone/Tablet
   

PC/Laptop holds the largest share of the industry

A detailed breakup and analysis of the market based on the device type has also been provided in the report. This includes PC/laptop and smartphone/tablet. According to the report, PC/Laptop accounted for the largest market share.

In the gaming industry, PC/laptop gaming leads the market as it enables advertisers to access to a wide range of players. 92% of all households in 2018 had at least one type of computer, and 85% had a broadband internet subscription, according to the UNITED STATES CENSUS BUREAU. Due to their strong hardware and larger screens, PCs and laptops provide plenty of space for advertisements, making in-game ad placements more effective and engaging. Furthermore, as PC and laptop users frequently play games for extended periods of time, advertisers get an excellent opportunity to interact with players.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest in-game advertising market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for in-game advertising.

North America, particularly the United States and Canada, has the largest in-game advertising market revenue due to high penetration rate of digital devices and internet connectivity, which supports an extensive base of gamers across various platforms including mobile, PC, and consoles. According to Entertainment Software Association, nearly 227 million Americans play video games. Two thirds of adults and three quarters of kids under 18 play video games weekly. Across all ages, 80% of players are over 18, and the average age of a video game player is 31. In total, players are about half female (45%) and half male (55%). This wide and active gaming population provides a substantial audience for in-game advertising. Besides, North America hosts major gaming publishers and e-sports leagues, which facilitate collaborations and partnerships with advertisers. The strong e-sports ecosystem in the region, including major tournaments and events, offers additional high-visibility platforms for in-game advertising.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the in-game advertising industry include Activision Blizzard Media Ltd., AdInMo Ltd., Adverty AB (publ), Anzu Virtual Reality Ltd, Bidstack Limited, Electronic Arts Inc., HotPlay, IronSource Ltd. (Unity Technologies), Playwire, RapidFire, Inc. 
  
  (Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.)
   
• The in-game advertising market research report shows that game developers and advertisers are exploring new ways to blend real-world brands seamlessly into the virtual gaming environment using AR and VR elements. This integration enhances the player's immersion and delivers a more engaging and interactive advertising experience. Additionally, the rise of cloud gaming and streaming platforms has opened new opportunities for targeted and dynamic in-game advertising. Furthermore, advancements in data analytics and artificial intelligence (AI) by key players that enable precise targeting, optimizing ad placements, and measuring ad performance, makes in-game advertising more effective and appealing to brands seeking to connect with the vast and diverse gaming audience.

In-game advertising Market News:

• In February 2023, Anzu and Livewire, the global game tech and gaming marketing company, have announced a partnership in Germany. The collaboration will support Anzu and Livewire's footprint in Germany, permitting even more brands to reach gamers via non-intrusive in-game ad placements inside titles they love, where their attention is greatest.
• In August 2022, in-game advertising provider Adverty announced an exclusive partnership with digital marketing specialist Yazle, allowing the agency to exclusively represent and sell Adverty's full inventory in the Middle East and North Africa (MENA).

In-Game Advertising Market Report Scope:

Key Questions Answered in This Report:

• How has the global in-game advertising market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global in-game advertising market?
• What is the impact of each driver, restraint, and opportunity on the global in-game advertising market?
• What are the key regional markets?
• Which countries represent the most attractive in-game advertising market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the in-game advertising market?
• What is the breakup of the market based on the device type?
• Which is the most attractive device type in the in-game advertising market?
• What is the competitive structure of the global in-game advertising market?
• Who are the key players/companies in the global in-game advertising market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the in-game advertising market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global in-game advertising market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the in-game advertising industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.