The Global In-game Advertising Market Anticipated to Generate a Revenue of $17,591.6 Million, Growing at a CAGR of 11.0% from 2022 to 2030

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The global in-game advertising market is estimated to be valued at $17,591.6 million by 2030, surging from $6,816.6 million in 2021, at a noteworthy CAGR of 11.0%.

Impact Analysis of COVID-19 on the In-game Advertising Market

The global coronavirus pandemic has had a profound impact on the lives of many people in nearly every country. The COVID-19 pandemic is having a significant impact on many industries, including digital advertising. With the COVID-19 pandemic, business owners are rethinking their marketing strategies and wondering if now is the best time to run online ads. The impact of covid on the in-game advertising market is positive because most end users are now operating online with digital devices, and with the uncertainty of the pandemic's end, many organizations are planning to shift their advertising investment to digital platforms. The in-game advertisement market is expected to be driven by increasing technological advancements and increased consumer time spending on internet gaming, boosting the enterprises to promote ads on gaming applications.

Global In-game Advertising Market Analysis

The market for in-game advertising is gaining traction in a variety of industries. The growing number of internet users and the widespread adoption of smartphones & other portable devices are the primary factors driving high traction. Because user awareness is growing on a daily basis and the market is saturated, it is critical to target the right audience. Market growth opportunities abound, and as technology advances, advertisers will find it much easier to identify a potential or prospective customer or client. Advertisers can reach a larger pool of prospects at a lower cost with in-game online advertising than with trivial print media advertising. In-game advertising is now the norm rather than the exception. According to an Omdia survey, gaming companies worldwide earned more than 42 billion dollars in 2019 solely from in-game advertisements. Free-to-play behemoths such as Genshin Impact and Call of Duty Mobile are largely supported by a mix of advertisements and high-value in-app purchases. Furthermore, smartphone use has rapidly increased, and the way consumers communicate with different brands or suppliers has significantly provided the access to high internet on smartphones. This factor is anticipated to propel the growth of the in-game advertising market, as it has become critical for brands to recognize customers' interests thru the smartphone advertisements and also to influence their buying decisions.

The main restraining factor is frequent ads in the game can distract users from the game and may even let them quit the game. Also, online gaming, on the other hand, has serious consequences for the body and mind, including overweight, depressed mood, addiction issues, and increased aggressive or violent behavior. This, in turn, will pose a challenge to the market growth during the forecast period, as global awareness of the negative effects of excessive gaming grows.

Advertising within video games has a lot of potential and will open up a lot of new opportunities in the future. As of 2021, there were approximately 2.7 billion gamers worldwide, according to the Business of Apps. Twitch, the world's largest videogame streaming service, recorded 990 million hours of gaming content viewership in 2019. Over 70% of gamers are over the age of 18, and the typical gamer is a 34-year-old parent and home owner. Furthermore, Admix, a platform for incorporating ads and product placement within gameplay, reports that an overwhelming 93% of media buyers intend to run in-game advertising by 2025. It implies that, on average, video game players and content consumers are more likely than internet users to buy products and influence the purchasing decisions of others.

Global In-game Advertising Market, Segmentation

The global in-game advertising market is segmented based on type, device type, and region.

Type:

The type segment is further classified into static ads, dynamic ads, and advergaming. The static ads sub-segment is expected to have the largest market share with revenue exceeding $8,033.2 million by 2030, up from $3,072.7million in 2021. Static ads 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. Some benefits of integrating static ads into ad campaigns include the fact that they will be widely accepted by all ad networks and are simple to produce since they do not require much technical as well as creative expertise. Although static ads cannot adapt and change based on user behavior, the advertiser can update and refresh them as needed. Furthermore, the ever-increasing advertising inclination necessitates a shift in the mediums through which these messages are delivered.

Device Type:

The device type is further classified into PC/laptop and smartphone/tablet. The PC/laptop sub-segment is expected to have a dominant market share of $9,718.5 million by 2030, up from $3,996.2 million in 2021. 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, the large number of PC/laptop games being played by players all over the world enhances users' experience while playing games and is one of the reasons the PC/laptop sub-segment of the in-game advertising market is dominating. According to the Entertainment Software Association, the trade association for the video game industry in the United States, approximately 65% of American households play PC/laptop games each year. PC/laptop games are played by approximately 26% of people over the age of 50. The growing users of PC games, such as Counter-Strike, Farmville, and others, is one of the major factors assisting in the market growth.

Region:

The in-game advertising market in the North America region is projected to have the largest share. The market in North America generated a revenue of $2,398.8 million in 2021 and is projected to reach up to $5,731.3 million by 2030. The North America market is expected to expand due to the rapid sales of smartphones, PCs, laptops, and other 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.

Key Players in the Global In-game Advertising Market

Some of the leading global in-game advertising market players are

1. Alphabet Inc.
2. Anzu Virtual Reality Ltd.
3. Blizzard Entertainment Inc.
4. Electronic Arts Inc.
5. MediaSpike Inc.
6. ironSource Ltd.
7. Motive Interactive Inc.
8. Playwire LLC
9. RapidFire Inc.
10. WPP Plc.