The In-game advertising market size is set to grow by USD 5,182.68 million between 2022 and 2027 and register a CAGR of 13.25%, according to Technavio’s latest market research report estimates. The market share growth by the mobile segment will be significant during the forecast period. Smartphone penetration was 45%-50% worldwide in 2021, with almost half of mobile application users playing games on their phones. The availability of affordable, large-screen mobile devices boasting high display resolutions has greatly improved the gaming experience, thereby attracting a larger audience towards mobile gaming. The growing number of mobile gaming players, as well as the increase in the number of casual and hyper-casual gamers, has resulted in a substantial number of product launches by vendors. As the number of casual and hyper-casual players grows, advertisers and game developers are both shifting their focus to in-game advertising. With a focus on identifying dominant industry influencers, Technavio’s reports present a detailed study by way of synthesis, and summation of data from multiple sources. This report offers an up-to-date analysis of the current market scenario, the latest trends and drivers, and the overall market environment. Technavio offers in-depth market insights that assist global businesses to obtain growth opportunities. Read Sample Report
In-Game Advertising Market 2023-2027: Segmentation
- Platform
- Mobile
- Computing
- Console
- Type
- Static Ads
- Dynamic Ads
- Advergaming
- Geography
- North America
- APAC
- Europe
- Middle East and Africa
- South America
The report also covers the following areas:
- In-Game Advertising Market size
- In-Game Advertising Market Trends
- In-Game Advertising Market industry analysis
In-Game Advertising Market 2023-2027: Vendor Analysis and Scope
Some of the major vendors of the in-game advertising market include Activision Blizzard Media Ltd., AdInMo Ltd., Alphabet Inc., Anzu Virtual Reality Ltd., Bidstack Ltd., Flurry Inc, HotPlay, InMobi Pte. Ltd., ironSource Ltd., Motive Interactive Inc., Playwire LLC, RapidFire Inc., Wam Group Ltd., and WPP Plc. To help businesses improve their market position, Technavio’s report provides a detailed analysis of around 15+ vendors operating in the market. To leverage the current opportunities, market vendors must strengthen their foothold in the fast-growing segments while maintaining their positions in the slow-growing segments. Backed with competitive intelligence and benchmarking, our research reports on the in-game advertising market are designed to provide entry support, customer profile & M&As, as well as go-to-market strategy support.
Vendor Offering
- Activision Blizzard Media Ltd. – The company offers in-game advertising services such as interactive ads, integrated branding, and rewarded video ads.
- AdInMo Ltd. – The company offers in-game advertising services for developers and advertisers.
- Alphabet Inc. – The company offers in-game advertising services under the subsidiary Google LLC.
In-Game Advertising Market – Market Dynamics
Key Drivers
The increase in the number of gamers and growing partnerships between advertisers and video game companies are the key factors driving the market growth. The rapid expansion of the gaming industry, fueled by the rise of free-to-play online video games like Apex Legends and Fortnite, is projected to surpass a value of USD 300 billion by 2025. Furthermore, with a global gaming population exceeding 2.4 billion individuals, advertisers are expected to take advantage of the opportunity to invest in in-game advertising. This strategy will allow them to efficiently target a diverse audience, including various demographic groups and geographical locations, in a shorter period of time. This type of advertising helps in the development of an effective audio-visual impact, which can leave viewers with a positive and long-lasting impression of the product. Hence, these factors are expected to drive market growth during the forecast period.
Major Trends
The incorporation of Neuro-Linguistic Programming (NLP) with in-game advertising is a major trend shaping the market. Marketing enterprises have expanded their utilization of Neuro-Linguistic Programming (NLP), which was formerly used for sentiment analysis, to include its application in in-game advertising. These businesses use NLP to obtain insights into individuals’ cognitive processes, which include emotions, thoughts, behavior, and language, to achieve desired results. For instance, in a racing game, a gamer facing potential defeat can receive a performance boost through exposure to an advertisement, ultimately helping in achieving victory. Gamers are more likely to interact with in-game advertising, which leads to increased brand engagement. Hence, these strategies are expected to drive market growth during the forecast period.
Significant Challenges
The growing use of advertisement-blocking solutions is a significant challenge restricting market growth. The increased interruption created by in-game advertising before and during gameplay might have an impact on the player’s experience. Some advertisements bring little value or relevance to gamers, increasing their level of dissatisfaction while playing. As a result, this encourages gamers to use ad-blocking software to prevent adverts from being displayed while playing video games. The adoption of these ad-blocking solutions results in losses for game producers and marketers because no revenue is earned from gamers who use ad-blocking solutions. Hence, these factors are expected to restrict market growth during the forecast period.
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In-Game Advertising Market 2023-2027: Key Highlights
- CAGR of the market during the forecast period 2023-2027
- Detailed information on factors that will assist in-game advertising market growth during the next five years
- Estimation of the in-game advertising market size and its contribution to the parent market
- Predictions on upcoming trends and changes in consumer behavior
- The growth of the in-game advertising market
- Analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of in-game advertising market vendors
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