Global In-Game Advertising Market to Reach US$2.67 Billion by 2017, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on In-Game Advertising. Spending in the global market for in-game advertising (IGA) is forecast to reach over US$2.67 billion by the year 2017, as organizations increasingly recognize the media as an economical and highly effective means of reaching out to the elusive 18-34 years male demographic segment. Men in this age group form ideal target consumers with their playing passion, open preference for video/online games over television viewing and greater spending propensity. Leveraging this trend, organizations are diverting a significant proportion of their ad-budgets to in-game advertising. Surging broadband penetration, popularity of gaming videos, higher disposable incomes and unexplored youth population in developing economies will ensure the necessary traction in future.

In-Game Advertising: A Global Strategic Business Report

Follow us on LinkedIn - Gaming is fast becoming a dominant form of entertainment across the globe, overtaking some of the best-known, traditional entertainment mediums including the television. In fact in recent years, TV viewership in the lucrative 18-34 male age group declined by about 12% while recording a simultaneous increase of 20% in the time spent towards video and other gaming. Another notable trend lately has been the rising popularity of advertising in social networking games. Owing to its rapidly increasing popularity, social networking is on the verge of becoming a powerful cult form of consumer connectivity, providing tremendous scope for market growth. Even a small branding span in social networking games assures advertisers enormous exposure to a gaming audience base of about 70 million across the globe. The fact that several games are free of cost, makes the channel even more attractive for the avid gamers as well as advertising firms for lucrative brand positioning. Although IDA currently forms a small proportion of overall advertising budgetary allocation, the percentage is slated to grow in tandem with exposure to industries other than the traditional sporting and food & beverage segments.

The gaming industry is recognizing in-game advertising as a new and significant revenue stream in addition to the conventional retail sales revenue model. In-game ads are also proven to increase purchase intent by a significant percentage, with atleast 50% higher brand recall as compared to other media such as print, online and TV. Games today are becoming shorter and more intense, commanding advertisers to display greater creativity and uniqueness in retaining sustained attention span of viewers. With fierce competition and price wars, companies are under pressure to innovate and release ads that create maximum impact in a limited period of time. Proper ad placement plays an extremely important role, as contextually irrelevant placement runs the risk of negatively affecting a brand image, defeating the sole purpose of advertising. Ad placements need to ensure seamless welding of the gamer’s physical and virtual worlds, without seeming to intrude or annoy the player in midst of a game.

A unique trend witnessed recently is that of game developers making their own ads / brand promotion campaigns in-house without use of external outsourcing. Although this has led to dwindling business for professional advertising agencies, the game developers are seeking to vertically integrate their service options and cut down costs. During the recent economic recession, more number of advertisers embraced branded flash games, as they offered a cost-effective means of making the most of their limited advertising budgets. Branded Internet based flash games, integrated into their websites, offer advertisers a number of advantages over traditional TV and print ad campaigns and more importantly, at a fraction of the cost. The flash in-game advertising also enables active viewer participation and interaction with the brand, unlike other passive, traditional forms of advertising.

North America and Europe represent the largest and most influential markets worldwide, as stated by the new research report on In-Game Advertising. The US alone represents a formidable market with American male population in the age bracket of 18-35 years spending a whopping 35 million hours on gaming activity. Asia-Pacific is another significant market, buoyed by a continuous expansion of video gaming and higher spending power. In Asia-Pacific, in-game advertising is ranked as the fourth most popular entertainment source after television, Internet and Radio. The Asian market backed by promising markets of China, Australia and India is forecast to race ahead at an impressive CAGR of about 19%, through 2017.

Key market participants profiled in the report include Activision Blizzard, Inc (US), Blockdot, Inc, BlueNoodle/NeoEdge, Double Fusion, Inc., Electronic Arts Inc., Gaikai Inc, Google Adscape Media. Game Creative Pty Ltd, Greystripe, IGA Worldwide, Intergi Entertainment, Mochi Media, Tap Me! Inc., WildTangent, Inc and Yahoo, Inc.

The research report titled “In-Game Advertising: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of industry and service overview, major market trends and issues, overview of the global online advertising industry, service introductions, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for major geographic markets such as the US, Canada, Japan, Europe, Asia-Pacific, Middle East and Latin America. Market analytics are provided in value (US$) terms. The study also provides historic data for an insight into market evolution over the period 2003 through 2008.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
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