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A16542 | Pages: 176 | Charts: 61 | Tables: 80 |
The global in-game advertising market was valued at USD 6.8 billion in 2021, and is projected to reach USD 17.6 billion by 2030, growing at a CAGR of 11% from 2022 to 2030.
Growing interest in social and mobile gaming is expected to have a positive impact in-game advertising market share growth. Advertisements can be integrated into desktop and mobile games via commercials, cut-scenes, billboards, and background displays with in-game advertising. Furthermore, these advertisements are non-interruptive, allowing players to have a more seamless experience. In-game advertisements are expected to have a greater audio-visual impact, leaving viewers with favorable and long-lasting product impressions.
In-game advertising appears in computers and video games. According to IGA, advertisements are being integrated into mobile and computer games. Examples include pop-up messages, on-screen advertisements, cut-scenes, billboards, and background displays. Static (non-changeable) ads, dynamic (changeable ads), and advergaming are all types of in-game advertising (a game built as an advertisement). One of the major factors driving in-game advertising market size is the increasing global internet penetration.
Various benefits such as lower advertising costs, increased reach and ROI, rapid integration, and simple configuration of adverts in social gaming are supposed to drive the in-game advertising market. Furthermore, the integration of effective gaming payment schemes reduces fraud, which might also propel the market over the forecast period. The growing availability of free smartphone games that generate revenue through in-game advertising is expected to drive market growth.
The increasing time and cost of developing new games, combined with a shorter product lifecycle, are expected to stymie market growth. The increasing reluctance of gaming companies as a result of declining advertising revenues is expected to pose a challenge to the in-game advertising market growth. Furthermore, the need to limit poorly designed advertisements with low consumer impact may impede market growth. An increase in the number of unrelated and distracting advertisements for online and social gaming is expected to have a negative impact on market growth.
The global in-game advertising market is segmented on the basis of type, device type, and region. By type, the market has been divided into static ads, dynamic ads, and advergaming. By device type, the analysis has been divided into PC/laptop and smartphone/tablet. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in this report include 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.
By type, the market has been divided into static ads, dynamic ads, and advergaming. The static ads sub-segment is expected to have the largest share in in-gaming market. Static advertisements are those that do not change. Simply put, static ads are used by promoters when they want to raise brand awareness and reach a large audience. When a static ad includes a banner or ads in video games, it can be mistaken for a dynamic ad.
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By device type, the market has been divided into PC/laptop and smartphone/tablet. The PC/laptop sub-segment is expected to have a dominant share of global in-game advertising market. Steam, the PC game platform, has several times reported breaking global concurrent user records. Due to online games having high graphic resolutions and being available on PC/laptop, there is a large number of PC/laptop games being played by players all over the world with enhanced users' experience, which is one of the reasons of the PC/laptop sub-segment to be dominant.
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By region, North America dominated the global in-game advertising market in 2021 and is forecasted to remain the dominant region during the forecast period. The North American region is expected to expand due to the rapid sales of smartphones, PCs, laptops, and other electronic devices. The release of high-quality new games for smartphones, tablets, and consoles is increasing as developers increasingly use games as a medium of advertisement. Several developers use in-game advertising because it is non-intrusive and can be displayed while the game is being played. Developers can reach a large number of users and increase their market presence by using in-game advertising. Such factors are likely to accelerate the growth of in-game advertising market size in the anticipated time frame.
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Key Market Segments
Key Market Players