The Rise of In-Game Advertising: Trends and Insights

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In Game Advertising

Admix, a leading platform specializing in In-Play advertising, has unveiled groundbreaking insights from its extensive research study on the burgeoning prominence of video gaming as a primary media channel. The study highlights the rapid evolution of the gaming industry, emphasizing how video games have become a dominant force in the media landscape. It explores the diverse demographics and the increasing engagement levels among gamers, showcasing how this medium is not only capturing the attention of younger audiences but also appealing to a wider, more varied population. By delving into the intricate details of gamer behavior, advertising potential, and market trends, Admix’s research provides a comprehensive understanding of how video gaming is revolutionizing the way brands connect with consumers. The findings underscore the significant opportunities for advertisers to tap into this dynamic and rapidly growing market, leveraging the immersive and interactive nature of video games to create impactful and engaging advertising experiences.

Gaming Industry Overview: A Lucrative Market

With a staggering user base of three billion avid gamers projected to invest nearly $176 billion in gaming by the year’s end, and an anticipated surge to over $200 billion by 2023, the gaming industry presents vast opportunities for marketers. Notably, mobile gaming outshines both PC and console gaming, signaling a paradigm shift in consumer behavior.

Research Methodology: Understanding Market Dynamics

To comprehend the evolving landscape of the video gaming sector and assess companies’ perceptions and plans regarding in-game advertising, Admix commissioned a comprehensive study in collaboration with independent market research organization Atomik Research. The study surveyed over 400 participants responsible for media purchasing across the UK and US.

Key Findings: Insights Driving Industry Growth

1. Surge in Gaming Advertising

An astounding 93% of advertisers have witnessed a surge in investment towards video game advertising in the past year. Looking ahead, 81% of media buyers anticipate maintaining or increasing their budget for in-game advertising, with a remarkable 93% planning to implement some form of in-game advertising by 2025.

2. Driving Factors for Growth

The exponential advancement in the infrastructure of in-game advertising serves as a catalyst for its growth. Noteworthy factors include advancements in programmatic options, third-party verification of in-game advertising performance, and enhanced access to in-game inventory.

3. Obstacles Against Adoption

Despite its growing popularity, in-game advertising still faces barriers to widespread adoption. Lack of understanding remains a significant obstacle, with 31% of media buyers considering it an ambiguous area.

4. Premium Outlets

While 60% of participants believe that gaming consoles offer superior advertisement inventory compared to mobile, casual mobile games are increasingly recognized as premium advertisement opportunities, slightly edging out other in-game platforms.

5. Gaming Expenditure

While advertisers acknowledge the vast potential of the gaming market, there’s a disparity between perception and reality. While 34% estimate gaming expenditures between $100 and $500 billion, the actual figure stood at $165 billion in 2020, with mobile gaming accounting for over half of this spending.

6. Gaming Demographics

Media buyers tend to underestimate the size and diversity of gamers, often misconstruing the average gamer as a male console player. In reality, there are three billion gamers worldwide, with mobile gamers comprising 2.8 billion and an approximately equal gender distribution.

7. Transatlantic Variations

US companies exhibit more caution compared to their UK counterparts, with 23% citing client resistance as a barrier to in-game advertising investment, compared to 9% in the UK. Moreover, 52% of UK media buyers anticipate in-game activities within the next year, compared to 33% in the US.

Conclusion: Embracing the Future of Advertising

As video gaming emerges as a dominant media channel, the potential of in-game advertising cannot be overlooked. Marketers must overcome barriers, leverage advancements, and embrace the transformative power of in-game advertising to effectively engage with an ever-expanding gaming audience.

Key Takeaways and Recommendations

Stay Ahead of Trends

Keep abreast of advancements in in-game advertising infrastructure and programmatic options.

Educate and Inform

Address misconceptions and enhance understanding of the gaming audience and advertising opportunities.

Diversify Platforms

Explore premium advertising opportunities across various gaming platforms, including consoles and mobile devices.

By embracing in-game advertising, marketers can unlock new avenues for brand engagement and drive significant ROI in the dynamic landscape of modern media consumption.