In-Game Advertising Market Size was valued at USD 7.3 Billion in 2022. The In-Game Advertising market is projected to grow from USD 8.2 Billion in 2023 to USD 20.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.30% during the forecast period (2023 - 2032).
Growing popularity of social and mobile gaming, as well as advantages like cheaper advertising, greater reach and ROI, quick integration, and straightforward ad settings in social gaming, are the key market drivers enhancing the market growth.
Figure 1: In-Game Advertising Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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 In-Game Advertising Market segmentation, based on Type, includes static ads, dynamic ads, and advergaming. In the in-gaming advertising market, the static ads sub-segment was the dominant type in 2022. Ads that don't alter are known as static ads. Simply simply, promoters employ static advertising when they want to expand their audience and increase brand recognition. It may be mistaken for a dynamic ad when a static advertisement features a banner or advertisements in video games.
The In-Game Advertising Market segmentation, based on Device Type, includes PC/laptop and smartphone/tablet. In 2022, the PC/laptop sub-segment dominated the global in-game advertising industry. The PC gaming platform Steam has frequently announced breaking records for concurrent users worldwide. One of the reasons the PC/laptop sub-segment is prominent is because online games have high graphic resolutions and are accessible on PC/laptop, which leads to a huge number of PC/laptop games being played by people around the world with improved user experiences.
Figure 2: In-Game Advertising Market, by Device Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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, MRFR 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.
November 2022 Today, Unity announced that its merger with ironSource was complete, making it the industry's top end-to-end platform for building mobile applications. Unity is able to support creators across the entire development lifecycle as they create, operate, and turn immersive real-time games and 3D experiences into lucrative companies thanks to this revolutionary combination.
February 2023 Livewire, the top worldwide gametech and gaming marketing firm, and Anzu, the most cutting-edge intrinsic in-game advertising solution, jointly established a cooperation in Germany. The new multi-year agreement expands on the regional success Anzu has had connecting brands with gamers through intrinsic in-game advertising in well-known mobile, PC, and Metaverse games, such as Deutsche Telekom, Vodafone, and Sparkasse.
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