The global in-game advertising market is expected to reach a value of more than USD 9.37 Billion in 2024. The industry is expected to grow at a CAGR of 10.40% during the forecast period of 2025-2034. The growing popularity of mobile and online gaming is driving the demand for in-game advertising, offering brands direct access to a highly engaged audience, thus aiding the market to attain a valuation of USD 25.20 Billion by 2034.
In-Game Advertising Market Analysis
The in-game advertising market is growing substantially because of several underlying key trends. The in-gaming audience continues growing worldwide because there is still sizable scope for expansion on mobile devices, personal computers, and consoles. This diverse, highly engaged player demographic affords the advertisers a rich environment to target specific audiences through dynamic, immersive ads. In addition, the increase in E-sports and game streaming opens up new spaces for ad placements in games, engaging vast and very enthusiastic audiences, thereby bolstering the in-game advertising demand.
For this purpose, companies such as Anzu and Electronic Arts are focusing on improving ad targeting capabilities, providing brands with seamless, interactive, and engaging means of interaction with players. The demand is also being supported by the rise of hybrid monetization models, especially in free-to-play games, which enable developers to include advertising in exchange for offering games at no cost. Advanced targeting and immersive ad formats make in-game advertising an increasingly attractive channel for advertisers.
In-Game Advertising Market Growth
Dynamic ad usage is a niche driver for the growth of the in-game advertising market because it is highly effective in real-time targeting and personalization. For instance, Nike partnered with the popular game Fortnite to introduce dynamic in-game billboards that highlight its products. These change in real-time according to the actions and context in which the player has taken, improving their relevance and engagement. This trend is attracting more brands looking for personalized ad experiences without disrupting gameplay, hence further growth in dynamic in-game advertising.
Dynamic in-game advertising has been effective in increasing player engagement and brand visibility. For instance, Coca-Cola partnered with EA Sports' FIFA series where dynamic ads appeared on virtual billboards during gameplay. These ads changed based on real-world events, such as live football matches, thus ensuring relevance and contextual marketing. Similarly, Nike's partnership with Fortnite allowed players to see dynamic in-game billboards showing Nike products, personalized by game events. Such campaigns have proved how the integration of real-time ads increases the visibility of a brand while offering an interruption-free gaming experience.
Key Trends and Developments
Programmatic ads, branded collaborations, esports sponsorships, and interactive story-based ads drive in-game advertising growth.
November 2024
Nazara and ONDC launched "gCommerce," an in-game monetization platform connecting gamers to diverse sellers. Set for broader rollout in FY26, it offers developers affiliate revenue-sharing, enhancing player experience and gaming revenue.
September 2024
Intersport partners with EA Sports FC 25 to showcase digital ads, targeting Gen Z and younger audiences through in-game advertising, leveraging gaming's growing appeal among digitally native consumers.
July 2024
Anzu and Cedara launched a carbon measurement solution for intrinsic in-game advertising, helping advertisers track and offset emissions, promoting sustainability in digital advertising.
April 2021
InMobi expanded its global in-game advertising services by partnering with platforms like AdInMo and Anzu. This collaboration enables precise targeting and immersive ad experiences, leveraging real-time in-game environments to engage mobile gamers effectively and boost brand visibility.
Real-Time Programmatic Advertising
Real-time programmatic advertising is transforming in-game marketing by providing relevant, dynamic ads. In 2022, Anzu partnered with Ubisoft to integrate programmatic ads in Trackmania, showing brand messages targeted to player profiles. Such an adaptive approach increases the relevance of ads while boosting the ROI for advertisers. Such campaigns ensure seamless integration, making ads less obtrusive while driving brand awareness and engagement through contextual, personalized experiences, thus augmenting the in-game advertising demand growth.
Branded Game Integrations
Branded game collaborations are reshaping in-game advertising. Balenciaga's deal with Fortnite introduced custom outfits and virtual items, fusing luxury fashion with gaming culture. Players bought these virtual goods, which increased brand revenue while extending its reach to younger, fashion-conscious gamers. This trend makes brand promotions an immersive and interactive experience, fusing lifestyle with entertainment.
Esports Sponsorships and In-Game Events
Esports sponsorships provide tremendous brand exposure. Red Bull sponsors League of Legends Worlds, reaching millions of gamers worldwide. Sponsorships offer consistent visibility through branded in-game events, which helps to increase brand loyalty. Esports viewership ensures that the engagement is continued, and thus such sponsorships are important for companies looking to tap into the tech-savvy competitive gaming communities., thus boosting the in-game advertising market revenue.
Interactive Story-Based Ads
Interactive story-based ads form memorable brand experiences. Spotify teamed up with Roblox to introduce Spotify Island, an in-game music-themed metaverse. Players finished music-inspired quests while exploring branded environments, linking entertainment to brand discovery. This approach digs deeper into player engagement with fun, immersive stories and seamless advertising, which are sure to drive long-term customer loyalty.
In-Game Advertising Market Trends
The increasing popularity of gaming owing to rising influence of social media is boosting the in-game advertising market growth. The undivided attention provided by the players to the games makes them more likely to remember the advertisement and check the advertised service or product.
Due to the easy to scale and flexible nature of dynamic in-game advertisements, they are used for geo-targeting opted-in users. Dynamic ads are also preferred by various brands as they can be updated in real-time and can be displayed in various formats including interstitial ads, native banners, contextual ads, and playable ads, among others.
The growing awareness about the various benefits offered by in-game advertisements including increased reach and return on investment, simple configuration of adverts, low advertising costs, and rapid integration, among others are providing lucrative growth opportunities to the market.
Opportunities in In-Game Advertising Market
A significant opportunity within the market is the reach to a massive and highly engaged gaming audience, particularly within mobile and esports environments. Over 3 billion gamers now exist worldwide, and mobile gaming is increasing rapidly. So, brands can engage consumers directly through immersive, non-disruptive ad formats, such as in-game billboards, product placements, and sponsored content, bolstering the in-game advertising market opportunities. For instance, through such partnerships with AdInMo and Anzu, InMobi enables global brands to target diversified gaming demographics, hence promoting brand recall and engagement.
One new technology adopted by market players in the in-game advertising sector is programmatic advertising, which allows for real-time and automated ad placements within gaming environments, shaping in-game advertising market dynamics and trends. For example, InMobi has collaborated with prominent in-game advertising platforms including AdInMo, Adverty, and Anzu to provide access to high-performing mobile gaming traffic through its programmatic exchange. It has more precise targeting, higher rates of engagement, and non-intrusive ad experiences in games, enhancing user interaction and improving ad performance across global markets.
In-Game Advertising Market Restraints
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