In-game advertising market size to grow by $6.07 billion from 2024-2028, report
The global in-game advertising market size is estimated to grow by $6.07 billion from 2024-2028, according to Technavio.
The market is estimated to grow at a CAGR of 13.87% during the forecast period. The gaming industry's rapid growth, driven by free-to-play online games like Apex Legends and Fortnite, will expand to a USD300 billion market with 2.4 billion gamers by 2025.
In-game advertising (IGA) will thrive due to partnerships between publishers and advertisers, reaching diverse demographics and geographies. IGA formats include interstitial ads, video ads, native ads, and non-interruptive ads on mobile games, desktop games, VR, AR, and streaming platforms. Brands leverage IGA for customized advertising through various formats like billboards, background displays, and cut-scenes, ensuring audio-visual impact while avoiding issues like pop-ups, memory issues, or limited game support.
The In-Game Advertising Market encompasses B2C and C2C transactions in the digital media landscape. In online gaming, enterprises can target specific groups through multiplayer games, location-based games, and e-commerce websites.
The market offers two sub-segments: static ads and dynamic ads. Advergaming is another sub-segment that integrates advertising into games. PC/laptop and smartphone/tablet users, part of the growing gaming population, are reached through digital media. Social media platforms, Olympic Games, and product impressions are integral to the advertising landscape.
Advertisers leverage user devices, such as computers and mobile phones, to engage gamers in digital advertisements. Games like Animal Crossing, League of Legends, and streaming services like T1 Entertainment & Sports, attract significant ad spending from mobile gamers.
Casual mobile games and online multiplayer games are popular spaces for advertisers, game publishers, and developers like DVloper and Frameplay, to engage with their audiences on various digital platforms. The mobile ecosystem continues to evolve, driven by smartphone demand and the increasing popularity of social gaming.
The In-Game Advertising (IGA) market in North America is projected to expand due to the rising popularity of mobile and desktop gaming in the US and Canada. With high internet penetration rates of 94.3% in Canada and increasing numbers of internet users, the mobile gaming sector is experiencing significant growth.
IGA incorporates various forms of advertisements such as cut-scenes, billboards, background displays, and non-interruptive audio-visual impact. However, limitations include limited games support, incompatible devices, and memory issues.
IGA encompasses pop-up messages, on-screen advertisements, static ads, and dynamic ads. Advergaming, a form of IGA, integrates advertising into the game itself. Digital-content-focused segments like Wordscapes, online portals, and social networking sites generate substantial social media traffic and online advertising revenue.
Companies like Riot Games employ IGA for B2C and C2C marketing, while e-commerce websites and online gaming platforms utilize IGA for multiplayer games, location-based games, and esports. The static ads sub-segment and dynamic ads sub-segment, as well as the advergaming sub-segment, cater to PC/laptop and smartphone/tablet users, expanding the advertising landscape in the digital media sector.
