In-game Advertising Market - Drivers and Restraints, Forecast 2018 - 2026

Advertising is an indispensable pillar of marketing. It is an interactive approach that helps a company to efficiently communicate with its target audience. Over a period of time, the medium through which advertisements were delivered to the customer has undergone a significant change. Advertising platforms have changed with changes in market trends and customer preferences. For instance, online advertising (through social networking sites and video sharing sites) gained traction due to the wide use of Internet for surfing and other purposes. Similarly, in-game advertising has gained momentum in the present market. In-game advertising is a way of promotion of products via video games. Advertisers can pay and have their products featured in digital games.  

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Video games in the last 10 years have become highly immersive and interactive; they can strongly capture the gamers’ mind and transport them to a virtual world where they can interact with sights, sounds, and stories. Due to advancement in technology, the number of video gamers has increased, making these games an attractive platform for promoting products, brands, or concepts. Marketers are turning to in-game advertising to position their brands or products in the digital world.

There are several ways of conducting in-game advertising, the recent and most popular being dynamic in-game advertising that enables the advertiser to immerse into a 3D game setting through virtual objects, such as, billboards, posters, or bus stops. A major benefit of using dynamic in-game advertising is the ease of planning and launching an advertising campaign. Static in-game advertising, on the other hand, takes the form of product placement inside a console or PC. Advertisements are planned and integrated into the video game during the design process, thereby allowing high level of customization. Advergames is another way of brand promotion, in which games are developed with the sole purpose of promoting a brand or a product.      

The in-game advertising market is driven by the growing number gamers across demographic divisions and meteoric rise in the popularity of mobile games. Moreover, evolution of technology, specifically virtual reality and augmented reality, has improved the quality of video games and generated new level of interest among gamers. The ability to use big data to personalize a gamer’s experience with a brand is expected to drive the in-game advertising market further. However, piracy issues are likely to restrict the growth of the in-game advertising market and pose challenge to advertisers.

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The in-game advertising market offers adequate opportunities to advertisers, specifically during content creation or while creating their own advergames. Advertisers can come up with innovative approach of product positioning in the game in order to reach the right audience with the right message. Games on social media have caught the attention of many market players, largely due to the ease of accessibility through Internet and the seamless experience that they create. The platform can also act as an attractive way to reach out to large base of audience and spread word-of-mouth.