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The next advertising platform – Gaming 🎮 – opportunity but with growing pains

The global gaming industry may be worth $219 billion by 2024 (+9% CAGR from 2019) with 3 billion enthusiastic players globally in 2021 [Source: NEWZOO].

And they’re not just teen boys in their basements! — 80%+ U.S. gamers are over age of 18, and 55% over 35 [Nielsen]. And yes, women play too!




This makes gaming a prime space for advertising, with in-game ads, immersive features, and built-in transactions in an arena where it is the norm to pay for elevated experiences.


Research company “Insider Intelligence” estimates US in-game mobile advertising grew 34% to $5.5 billion in 2021 (compared to $52.2B automated online video ad buys in 2021, +48% vs 2020).


BCG projects

+29% CAGR 2021-2025 on in-mobile-gaming ad spending

and determined

86% of in-game virtual item/skin buyers also bought corresponding physical item.

Source: Anzu.io


🏁

Growing pain:

As technology enables brands to advertise in games, like all new platforms, it has growing pains including potential legal issues for deceiving players on what are regular games vs promotional “advergames” from marketers.


WSJ (Apr 2022) highlights areas to overcome for advertisers to invest further:

  • Brand reputation risk: “given the violent nature of some games and the unpredictability of some live, multiplayer environments, particularly those targeted at children” [@Kieley Taylor, of GroupM]

  • Technical challenges: “The number of ads publishers can fit inside a game without disrupting the player experience is still fairly low … and it costs more for the ads themselves to be tailored for in-game insertion”

  • Outdated measurements: How ad impressions are counted in a videogame is based on 2009 IAB guidelines which are outdated, new standards expected later this year.


🎯 Qu: Is this sales channel relevant for your brand? How are you planning to play in it?

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