In-Game Advertising Market

Growing interest in social and mobile gaming is driving the market growth

In-game advertising market share growth is anticipated to benefit from rising interest in social and mobile gaming. Commercials, cutscenes, billboards, and backdrop graphics can all be used in desktop and mobile games to incorporate advertising. Additionally, because these ads aren't disruptive, players can experience the game more seamlessly. It is anticipated that in-game commercials will have a stronger audio-visual impact and leave viewers with positive and enduring product impressions.

The in-game advertising business is expected to be driven by a number of factors, including lower advertising costs, increased reach and ROI, quick integration, and straightforward configuration of advertisements in social gaming. Additionally, the incorporation of reliable gaming payment methods lowers fraud, which could also drive the market during the forecast period. Market expansion is anticipated to be fueled by the expanding selection of free smartphone games that make money through in-game advertisements.

The in-game advertising market is expected to grow, leading market participants' transactions and market expansion indicating this. This will lead to more in-game advertising being used for more applications. It is anticipated that the global market will expand as interest in social networking and mobile gaming rises. Both desktop and mobile games can incorporate commercials, dramas, billboards, and backdrop displays with in-game advertising. These advertisements are also unobtrusive, giving players a more seamless experience. The goal of in-game advertising is to leave viewers with good, long-lasting impressions of the product through a more significant audio-visual effect.

The primary elements fueling the expansion of the worldwide in-game advertising (IGA) industry are the rising number of players and expanding collaborations between marketers and video game developers. With the proliferation of free-to-play online games like Apex Legends and Fortnite, the gaming business is expanding quickly. By 2025, there are projected to be more than 2.4 billion gamers worldwide, and this business will be worth over USD 300 billion. This will entice advertisers to spend money on in-game advertising and enable them to quickly reach a broader audience made up of people from different demographic groups and geographical areas.

Thus, driving the In-Game Advertising market revenue.

The burgeoning e-sports industry is a significant driver of the Global In-Game Advertising Market Industry. As e-sports tournaments gain popularity and attract millions of viewers, brands are increasingly looking to capitalize on this audience through in-game advertising. The integration of advertisements within e-sports games allows for targeted marketing strategies that resonate with a dedicated fan base. This trend is expected to further enhance the market's growth, as e-sports revenues are projected to reach new heights in the coming years. The convergence of gaming and advertising within this sector presents a lucrative opportunity for brands seeking to engage with younger demographics.

The Global In-Game Advertising Market Industry is projected to experience substantial growth in the coming years. With a market value of 9.2 USD Billion in 2024, the industry is expected to expand significantly, reaching an estimated 33.0 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 12.31% from 2025 to 2035. Factors contributing to this expansion include the increasing popularity of mobile gaming, advancements in technology, and the growing demand for interactive advertising experiences. As brands continue to recognize the value of in-game advertising, the market is likely to attract more investments, further fueling its growth.

Technological advancements are reshaping the Global In-Game Advertising Market Industry, enabling more sophisticated and immersive advertising experiences. Innovations such as augmented reality and virtual reality are being integrated into gaming environments, allowing for dynamic ad placements that resonate with players. This evolution not only enhances user engagement but also provides advertisers with valuable data analytics to measure campaign effectiveness. As technology continues to evolve, the market is expected to grow, with projections indicating a market value of 33.0 USD Billion by 2035. The ability to create personalized and interactive ads is likely to attract more brands to invest in in-game advertising.

The Global In-Game Advertising Market Industry is benefiting from a broader shift towards digital advertising. As traditional advertising channels become less effective, brands are increasingly allocating budgets to digital platforms, including in-game advertising. This transition is driven by the ability to target specific demographics and track engagement metrics in real-time. In-game advertising offers a unique opportunity to reach audiences in an immersive environment, leading to higher retention rates. With a projected compound annual growth rate of 12.31% from 2025 to 2035, the market is poised for substantial growth as more advertisers recognize the value of integrating their campaigns within gaming experiences.

The Global In-Game Advertising Market Industry is experiencing a surge in mobile gaming popularity, which is a primary driver of growth. As of 2024, the mobile gaming sector is projected to generate significant revenue, contributing to the overall market value of 9.2 USD Billion. This trend is likely to continue, with mobile games becoming more accessible and appealing to a broader audience. The integration of in-game advertisements within mobile platforms allows brands to reach consumers in a more engaging manner. As mobile gaming continues to expand, advertisers are increasingly leveraging this medium to enhance brand visibility and engagement.

Consumer demand for interactive and engaging experiences is driving the Global In-Game Advertising Market Industry. Gamers are increasingly seeking immersive experiences that go beyond traditional gameplay, and in-game advertising provides a unique avenue for brands to connect with players. This demand is reflected in the rising investment in in-game ads, as brands recognize the potential for higher engagement rates. As the market evolves, advertisers are likely to focus on creating ads that blend seamlessly with gameplay, enhancing the overall user experience. This trend is expected to contribute to the market's growth, with a projected value of 33.0 USD Billion by 2035.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America In-Game Advertising market dominated the In-Game Advertising Market in 2022 and accounted for largest market share. Due to the high sales of smartphones, PCs, laptops, and other electronic devices, the North American area is anticipated to grow. High-caliber new games are being released for smartphones, tablets, and consoles at a faster rate as game makers use gaming as a marketing tool more frequently.

Because it is non-intrusive and can be shown while the game is being played, many developers use in-game advertising.

Using in-game advertising, developers can reach a large audience and strengthen their position in the market. Such elements are likely to hasten the market size expansion of in-game advertising in the anticipated time frame. Further, the U.S. In-Game Advertising market held the largest market share, and the Canada In-Game Advertising market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: IN-GAME ADVERTISING MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The European In-Game Advertising market is expected to witness a decent growth rate during the forecast period. Businesses in the area are utilizing cutting-edge products more frequently to get rid of inconsistent and useless advertisement data. Additionally, the region is seeing entry into the market for in-game advertising due to its residence of some top-tier technology companies. Further, the German In-Game Advertising market held the largest market share, and the U.K In-Game Advertising market was the fastest growing market in the European region.

Asia Pacific In-Game Advertising market is projected to exhibit the fastest growth over the forecast period. Primarily due to the widespread youth gaming popularity in this area. The market for in-game advertising is also being driven by technology companies' creation of sophisticated in-game advertising technologies. Further, China’s In-Game Advertising market held the largest market share, and the Indian In-Game Advertising market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their Product lines, which will help the In-Game Advertising market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, In-Game Advertising Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global In-Game Advertising Industry to benefit clients and increase the market sector. In recent years, the In-Game Advertising Industry has offered some of the most significant advantages to medicine. Major players in the In-Game Advertising market, including Alphabet Inc., Anzu Virtual Reality Ltd., Blizzard Entertainment Inc., Electronic Arts Inc., MediaSpike Inc., ironSource Ltd., Motive Interactive Inc., Playwire LLC., RapidFire Inc., WPP Plc., are attempting to increase market demand by investing in research and development operations.

For its clients, InMobi platforms combine developments in big data, user behavior, and cloud-based architectures to streamline mobile advertising. With 872 million active unique users in more than 200 countries, InMobi is the largest independent mobile ad network in the world and was named one of the 50 Disruptive Companies of 2013 by MIT Technology Review. InMobi has announced the introduction of in-game advertising, which will make it possible to connect with premium mobile consumers, in April 2021. It will be comprised of advertisements that seamlessly fit into the game experience.

Video games and esports can now have in-game advertisements from the real world thanks to Anzu.io (also known as Anzu Virtual Reality). Its integrated in-game advertising solution incorporates advertisements right into the action. Additionally, the platform enables brand advertisers to use video games to distribute real-world advertisements in IAB-recognized formats. Anzu.io patented their current method of determining the viewability of intrinsic advertising in January 2023. A technology known as intrinsic advertising places advertisements inside the game's world.

A notable instance is the arcade game Crazy Taxi, which uses real-world establishments like KFC and the long-gone Tower Records as settings in the game.