In-Game Advertising Market Size to grow by USD 6.07 billion between 2024-2028
According to a research report “ In-Game Advertising Market” by Platform (Mobile, Computing, Console) Type (Static Ads, Dynamic Ads, Advergaming) Geography (North America, APAC, Europe, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 6.07 billion, at a CAGR of 13.87% during the forecast period. The gaming industry's expansion, fueled by the proliferation of free-to-play online titles like Apex Legends and Fortnite, is projected to surpass USD300 billion in value and attract over 2.4 billion users worldwide by 2025. This growth presents a significant opportunity for advertisers, who can capitalize on this vast, diverse audience by investing in in-game advertising. The global in-game advertising market will be propelled forward by the burgeoning number of partnerships between game publishers and advertisers, enabling brands to efficiently reach a broader demographic and geographic range..
Browse market data tables, figures, and in-depth TOC on “In-Game Advertising Market” by Platform (Mobile, Computing, Console) Type (Static Ads, Dynamic Ads, Advergaming) Geography (North America, APAC, Europe, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample
By Platform, the Mobile segment is projected to dominate the market size in 2024
The mobile gaming sector represents a significant share of the global gaming industry, accounting for approximately 43%-47% of the market revenue in 2021. With the widespread adoption of smartphones, which reached a penetration rate of 45%-50% worldwide, mobile gaming has gained substantial traction. Mobile application users represent nearly half of the global population, and an impressive number of them engage in gaming activities on their devices. The availability of affordable, high-performance mobile devices with superior display resolution has significantly enhanced the user experience, driving the popularity of mobile gaming. This trend is further reflected in the dominance of mobile gaming software on major online platforms such as Apple's App Store and Google Play.
By Type, Static Ads segment is expected to hold the largest market size for the year 2024
In-Game advertising offers businesses the ability to strategically place ads within digital gaming platforms, providing precise targeting capabilities. For instance, an ice cream parlor may opt to display their ad when the game's temperature surpasses a certain threshold, reaching a demographic likely to be interested in their product. Similarly, a stationery shop may choose to showcase their ads during school hours, reaching parents in the game environment. Advanced technology enables these ads to sync with customers' mobile devices, redirecting them to the businesses' social media or websites for further engagement.
North America is forecasted to hold the largest market size by region in 2024
The in-game advertising market is poised for significant expansion in North America, fueled by the increasing popularity of mobile and console gaming in the US and Canada. With high penetration rates of smartphones and the Internet in these countries, the number of mobile gamers is projected to rise substantially. For instance, there were approximately 36.74 million internet users in Canada in January 2024, representing a 94.3% internet penetration rate. This figure represents a 1.2% year-over-year increase in internet users. The burgeoning gaming population in North America offers a lucrative opportunity for businesses looking to engage consumers through in-game advertising.
The In-Game Advertising Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The In-Game Advertising market has seen significant growth in recent years, particularly in the Gaming Industry where Tablets and Smartphones have become the preferred devices for Digital Gaming. In-Game Advertising refers to promotional content integrated into video games, which can appear as Interactive Ads, Videos, Banners, or non-interruptive advertisements. Game Publishers have embraced this marketing strategy to reach their audience in a more engaging and effective way. In Mobile Games and Desktop Games, In-Game Advertising takes various forms such as Background Displays, Billboards, and Cut-scenes. These ads provide a high Audio-visual impact, allowing brands to showcase their products in an immersive and memorable way. However, it's important to note that not all User’s devices support In-Game Advertising, and some Mobile Games and Desktop Games may have limited games support. Therefore, it's crucial for advertisers to ensure their ads are compatible with the user's device and the game platform. Overall, In-Game Advertising offers a unique opportunity for brands to connect with their audience in a non-intrusive and visually stunning way, enhancing the gaming experience rather than disrupting it.
Market Research Overview
The in-game advertising market is a dynamic and growing segment of the digital media advertising landscape, with various formats such as Native Ads, Video Ads, Interstitial Ads, and more, gaining popularity among brands looking to reach relevant gaming audiences. Tablet advertising, console advertising, and PC advertising are key areas of focus, with mobile phone advertising leading the pack due to the smartphone demand and the large gaming population. In-game advertising comes in various forms, including Giftgaming, Augmented Reality, Virtual Reality, and Streaming Platforms. Esports and mobile gaming companies are major players in this space, with free-to-play games and customized advertising being popular trends. Ad formats like banner ads, in-game video, and incentive-based advertisements are inherent in the gaming industry, with publishers utilizing subscription services and digital content to monetize their game space. The mobile ecosystem, including Gamestack and Frameplay, offers opportunities for mobile phone gaming, video games, and app design. Brands are increasingly investing in digital platforms and online advertising services to reach online gamers, with social media traffic and social networking sites being popular channels. Location-based games, multiplayer games, and online gaming are other areas of growth, with e-commerce websites, C2C, and B2C platforms also utilizing advergaming to reach their audiences. However, it's essential to avoid distracting or unrelated advertisements and ensure non-interruptive advertisements, such as background displays, billboards, cut-scenes, and pop-up messages, for an optimal user experience. IGA (in-game advertising) faces challenges like memory issues, incompatible devices, and limited games support, but its audio-visual impact makes it an effective advertising strategy for brands.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
