In-Game Advertising Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Ad Type (Static Ads, Dynamic Ads, Advergaming), By Game Type (PC/Laptop Games, Console Games, Smartphone/ Tablet Games), And By Geography - Forecasts From 2022 To 2027

Published:  Jul 2022 Report Code: KSI061613510 Pages: 125

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

Introduction

In-Game Advertising (IGA) is the adoption of advertisements in the gaming industry to help companies market their products and services. With the increasing number of gamers among the audiences, the gaming industry provides a ready market for advertising agencies. Moreover, with the introduction and development of contextualized in-game ads, gamers can experience advertisements without the worry of interruptions in the gameplay.

Market Trend:

Following the COVID-19 pandemic, the advertising market saw massive potential in the gaming industry. Due to the government-imposed lockdowns and remote-work norms, the gaming industry saw an inflow of consumers. The mobile gaming industry reported a significant increase in users due to its accessibility and economic factors. This allowed the in-game industry to increase in size and demand as companies started to flood in for the industry.

The in-game advertising industry is also expected to experience better technology as companies develop better advertisement technology to improve the advertising consumption experience without interrupting the gameplay. Also, with the advancement in the virtual gaming industry and the metaverse, the in-game ad experience is expected to improve significantly.

Growth Factors

  • Prevalence of mobile games

With the growing adoption of smartphones and handheld devices, the mobile gaming sector has become a huge market in recent times. Mobile gaming provides its users with the ability to play games at any moment without the use of any other equipment. Following the COVID-19 outbreak, the in-game advertisement industry saw tremendous market opportunities in the mobile gaming sector, resulting in a rapid increase in market value.

According to Hubspot, there are 3.24 billion mobile gamers globally, which is expected to increase 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 ten times a week. With this rapid adoption of mobile gaming among people, the in-game advertising market is expected to rise.

  • Investments in the sector

Evaluating the immense scope in the in-game advertisement sector, companies have started to pool their investments for the market. Investments in the sector would help develop a better and more interactive advertising experience for the gaming industry.

  • In October 2021, Admix secured US$25 million to develop its in-game advertising platform. Since businesses continue to target wealthy people who are increasingly playing games, time is ideal. The current round of investment takes Admix's total funding to US$37 million, making it the most by any "non-intrusive games monetization firm." 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 in developing many opportunities for the advertising company.
  • Entravision, major worldwide advertising solutions, media, and technology firm, announced in April 2022, that it has chosen Anzu.io, one of the world's most advanced in-game advertising platforms, as its exclusive Latin American partner. Entravision will exclusively represent Anzu in 18 Latin American regions through its business unit Entravision-Cisneros Interactive, educating advertisers on the benefits of in-game advertising and allowing firms to use Anzu's award-winning solution for marketers, developers, and players.
  • In April 2022, Gadsme, a French IT startup that bills itself as the first in-game adtech platform to enable "immersive brand experiences" through in-game advertising, announced that it had received US$8 million in funding just 11 months after launching. As an outcome, it has received funding and direct creative collaboration from some of the greatest market players in gaming. Firms, including Ubisoft, were involved in the venture, which was led by interactive digital investment company Galaxy Interactive. Gadsme provides non-intrusive ad formats that are "blended, immersed, and organic to the gameplay," as well as being easy to configure and privacy compliant, allowing for appropriate advertisements to be presented to players across all devices, locations, and demographics. Due to the immense investment and developments in the sector, the in-game advertising market is expected to rise further.
  • In April 2021, InMobi, a top independent marketing company, announced the debut of in-game advertising, which businesses can now access programmatically on the InMobi Exchange. With the introduction of distinctive in-game inventory on the InMobi Exchange, brands will be able to target premium mobile users with advertisements that seamlessly integrate into the game world, such as electronic advertising boards in an in-game sports stadium, an esports arena, or the hugely popular casual and hypercasual gaming spaces.

Restraint

  • Measuring viewability

Despite its enormous potential, in-game advertising has been virtually unexplored thus far. Advertisers have to come up with a new technique to present video game commercials. The mid-game or mid-video format of YouTube advertising was originally explored in mobile games. Nevertheless, video ads in between games interrupt the overall gaming experience.

The development of contextualized in-game ads is a better alternative to traditional video ads. Companies like Adverty and Bidstack have created real-world ads for games embedded into the gameplay and hence provide a better ad experience.

However, there are still issues with in-game advertising. The criterion for determining viewability is still unsure. Advertisers sell ad space partly by guaranteeing viewability, which is why ads on television and the super bowl in the United States sell for millions of dollars. However, contextualized in-game ads cannot be measured based on viewability directly. A user might miss it subconsciously if they are not paying attention to the peripheral gameplay environment.

Hence, companies cannot be sure about the reach of their in-game advertisements, which is why some companies are reluctant to invest in contextualized game ads. 

In-Game Advertising Market Scope:

Report Metric Details
 Market size value in 2020  US$137.266 billion
 Market size value in 2027  US$221.511 billion
 Growth Rate  CAGR of 7.08% from 2020 to 2027
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments covered  Ad Type, Game Type, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered Admix, Bidstack Limited, Adverty AB, Rapidfire, Inc., Playwire, Gamelin, Engage, Ironsource
 Customization scope  Free report customization with purchase

 

Key Market Segments

  • By Ad Type
    • Static Ads
    • Dynamic Ads
    • Advergaming
  • By Game Type
    • PC/Laptop Games
    • Console Games
    • Smartphone/ Tablet Games
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Israel
      • South Africa
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the in-game advertising market?
A1. The global in-game advertising market is projected to grow at a CAGR of 7.08% during the forecast period.


Q2. What will be the in-game advertising market size by 2027?
A2. The in-game advertising market is projected to reach a market size of US$221.511 billion by 2027.


Q3. What is the size of the global in-game advertising market?
A3. In-Game Advertising Market was valued at US$137.266 billion in 2020. 


Q4. How is the global in-game advertising market segmented?
A4. The in-game advertising market has been segmented by ad type, game type, and geography. 


Q5. What factors are anticipated to drive the in-game advertising market growth?
A5. With the increasing number of gamers among the audiences, the gaming industry provides a ready market for advertising agencies.

1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Value Chain Analysis

5. IN-GAME ADVERTISING MARKET, BY AD TYPE
5.1. Introduction
5.2. Static Ads
5.3. Dynamic Ads
5.4. Advergaming

6. IN-GAME ADVERTISING MARKET, BY GAME TYPE
6.1. Introduction
6.2. PC/Laptop Games
6.3. Console Games
6.4. Smartphone/Tablet Games

7. IN-GAME ADVERTISING MARKET, BY GEOGRAPHY
7.1. Introduction
7.2. North America
7.2.1. USA
7.2.2. Canada
7.2.3. Mexico
7.3. South America
7.3.1. Brazil
7.3.2. Argentina
7.3.3. Others
7.4. Europe
7.4.1. Germany
7.4.2. France
7.4.3. United Kingdom
7.4.4. Spain
7.4.5. Italy
7.4.6. Others
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.5.2. UAE
7.5.3. Israel
7.5.4. South Africa
7.5.5. Others
7.6. Asia Pacific
7.6.1. Japan
7.6.2. China
7.6.3. India
7.6.4. South Korea
7.6.5. Taiwan
7.6.6. Thailand
7.6.7. Indonesia
7.6.8. Others


8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrative
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES
9.1. Admix
9.2. Bidstack Limited
9.3. Adverty AB
9.4. Rapidfire, Inc.
9.5. Playwire
9.6. Gamelin
9.7. Engage
9.8. Ironsource

Admix

Bidstack Limited

Adverty AB

Rapidfire, Inc.

Playwire

Gamelin

Engage

Ironsource

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