featured image

DUBLIN–(BUSINESS WIRE)–The report “In-Game Advertising Market – Forecasts from 2022 to 2027” has been added to ResearchAndMarkets.com’s offer.

The in-game advertising market is estimated to grow at a CAGR of 7.08% over the forecast period to reach $221.511 billion in 2027, up from $137.266 billion in 2020.

Market trend:

After the COVID-19 pandemic, the advertising market saw huge potential in the gaming industry. Due to government-imposed lockdowns and remote working standards, the gaming industry has seen an influx of consumers. The mobile game industry reported a significant increase in the number of users, due to accessibility and economic factors.

This allowed the in-game industry to grow in size and demand as companies started pouring into the industry. The in-game ad industry is also expected to experience better technology as companies develop better ad technology to improve the ad consumption experience without interrupting gameplay. With the advancement in the virtual game industry and the metaverse, the in-game advertising experience is also expected to improve a lot.

Growth factors

Prevalence of mobile games

With the growing adoption of smartphones and handheld devices, the mobile gaming industry has become a huge market in recent times. Mobile gaming allows its users to play games at any time without the use of any other equipment.

According to Hubspot, there are 2.2 billion mobile gamers worldwide, and this number is expected to grow by another million users by the end of 2023. The US accounts for about 203 million of these mobile gamers, and about 56% of them play more than 10 times a week. With this rapid adoption of mobile gaming among people, the in-game advertising market is expected to soar.

Investments in the sector

By evaluating the vast reach in the in-game advertising industry, companies have begun to pool their investments for the market. Investments in the sector would help develop a better and more interactive advertising experience for the game industry.

Admix has raised $25 million to develop its in-game advertising platform. As companies continue to target rich people who play more and more games, the time is right. The current investment round brings Admix’s total funding to $37 million, making it the most of a “non-intrusive game monetization company.” Elefund, Force Over Mass, DIP Capital, Notion Capital, Speedinvest, Rocket Capital, Colopl Next, Sure Valley Ventures, Kuvi Capital and Sidedoor Ventures are among the investors. This funding would help develop many opportunities for the advertising company.

Gadsme, a French IT startup that bills itself as the first in-game adtech platform to enable “immersive brand experiences” through in-game advertising, has received $8 million just 11 months after launch. As a result, it has received funding and direct creative collaborations from some of the largest market players in gaming. Companies, including Ubisoft, were involved in the venture, which was led by the interactive digital investment company Galaxy Interactive. Gadsme offers non-intrusive ad formats that are “mixed, immersed and organic in the gameplay”, as well as being easy to configure and privacy compliant, allowing suitable ads to be presented to players across all devices, locations and demographics. Due to the huge investments and developments in the sector, the in-game advertising market is expected to grow further.

limits

Measuring Visibility

Despite its huge potential, in-game advertising is virtually unexplored until now. Advertisers need to come up with a new technique to present video game commercials. The mid-game or mid-video format of YouTube ads was originally explored in mobile games. But video ads between games interrupt the overall gaming experience.

Developing contextualized in-game ads is a better alternative to traditional video ads. Companies such as Adverty and Bidstack have come up with real-world advertisements for games that are embedded in the gameplay and thus provide a better advertising experience. However, there are still problems with in-game ads. The criterion for determining visibility is still uncertain. Advertisers sell advertising space in part by guaranteeing visibility. That’s why ads on television and the Super Bowl are sold for millions of dollars in the United States.

However, contextualized in-game ads cannot be measured directly by viewability. A user may unknowingly miss it if they don’t pay attention to the peripheral gameplay environment. As a result, companies can’t be sure of the reach of their in-game ads, which is why some companies are reluctant to invest in contextualized game ads.

Market share:

By ad type

  • Static Ads

  • Dynamic ads

  • Advergaming

By game mode

  • PC/Laptop games

  • Console games

  • Smartphone/Tablet Games

by geography

Main topics covered:

1 INTRODUCTION

2. RESEARCH METHODOLOGY

3. SUMMARY

4. MARKET DYNAMICS

5. IN-GAME ADVERTISING MARKET, BY AD TYPE

6. IN-GAME ADVERTISING MARKET, BY GAME TYPE

7. IN-GAME ADVERTISING MARKET, BY COUNTRY

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

9. COMPANY PROFILES

Named companies

  • mixing

  • advertisement

  • Bidding stack

  • Rapidfire Inc.

  • Playwire Media LLC

  • Gamelin Advergames

  • engage

  • iron source

For more information on this report, please visit https://www.researchandmarkets.com/r/2245m7