How In-Game Ads Are Influencing Digital Marketing Strategies

The Pervasive Influence of Gaming Advertising

The gaming industry has undergone a significant transformation, becoming a mainstream form of entertainment. The Global Games Market Report (2021) estimated the global gaming market’s worth at $98 billion, projected to surpass $272 billion in the next decade. The broad spectrum of players coupled with the high revenue potential has led to a surge in in-game ads. As such, the in-game advertising market, estimated at $39.8 billion by ironSource, offers a vast and engaged audience to advertisers.

Gaming Advertising: A Win-Win Situation

The symbiotic relationship between publishers and advertisers makes in-game advertising a lucrative marketing tool. For advertisers, in-game ads offer an engaging platform to interact with users, while for publishers, ads drive revenue and provide a gateway for users to spend more within the app.

The Rise of the G-Shopper

The gaming industry’s growth has catalyzed a shift in consumer behavior, giving birth to the ‘G-Shopper.’ This new type of consumer leads the future of commerce in all gaming experiences, valuing the satisfying experience of interacting with a brand’s product or service from their comfort zone.

The State of Mobile Gaming Today

The popularity of mobile games has skyrocketed, with the average user spending nearly three hours per week playing mobile games. This surpasses the time spent browsing popular social media apps, making mobile gaming an attractive marketing channel for brands.

Identifying the G-Shopper

The G-Shopper is a futurist who appreciates interactive and enjoyable gaming experiences. They are proficient in new gaming formats, considered brand evangelists, and share their shopping perspectives with their gaming peers and community.

Current Trends in In-Game Advertising

Several trends have emerged in the gaming advertising space, including sponsorships, the dominance of around-the-game formats, and creative integration.

Sponsorships

E-sports have gained popularity, attracting major sponsorships and advertising deals. Brands like Honda, Totino’s, and Puma have sponsored e-sports teams, while gaming hardware company HyperX holds the naming rights to an e-sports arena in Las Vegas.

Around-the-Game Formats

While in-game, sponsorships and game influencers capture the attention of brands, the top environment where they spend is around the game advertising. This includes leveraging traditional and familiar ad units such as banners, interstitials, and rewarded video ads, which typically perform well in terms of reach, engagement, and click-through rates.

Creative Integration

Advertisers have become more skilled at seamlessly integrating their messages into the gaming experience, effectively blurring the lines between advertising and gameplay. This integration enhances the gaming experience, making brand communication immersive in the virtual world.

The Future of In-Game Advertising

The rise of gaming culture into mainstream entertainment signifies that gaming has become an influential force that cannot be overlooked by marketers. It’s not just about targeting gamers as a niche audience; it’s about recognizing the broader reach and engagement that gaming culture offers.

The Modern Gamer

The modern gamer encompasses over three billion players worldwide, which means there is no single mold. By being such a key part of the cultural and entertainment landscape, gaming is opening up new opportunities for brands, publishers, creators, and communities to connect with their audiences in a highly engaging and culturally relevant way.

The Role of Advertising Agencies

Advertising agencies have a crucial role to play in shaping the future of in-game advertising. They can help brands navigate the complexities of the gaming advertising landscape, develop effective advertising strategies, and create engaging ad content that resonates with gamers.

The Power of Performance Marketing

Performance marketing is an essential tool for brands looking to maximize their return on investment in gaming advertising. It allows brands to measure the effectiveness of their advertising campaigns in real-time, optimize their ad spend, and make data-driven decisions to improve their marketing performance. As traditional digital marketing strategies like audience retargeting become less effective due to the deprecation of 3rd party cookies and regulatory hurdles, in-game environments offer a contextually relevant environment for many brands to reengage with their target audiences in a cost effective manner.

Conclusion

The rise of in-game advertising has opened up new opportunities for brands to connect with a diverse and engaged audience. As the gaming industry continues to evolve, brands need to stay ahead of the curve and leverage the power of gaming advertising to enhance their brand visibility, engagement, and long-term success. With the right strategies, brands can harness the potential of in-game advertising to create immersive and interactive experiences that resonate with gamers and drive meaningful business results.

References & Further Reading

• Advertising in Video Games: The New Frontier for Marketers
• Mobile Game Marketing: 7 Best Strategies to Succeed in 2023
• The rise of gaming culture – is this the next frontier for marketing?
• Esports: What is it and how it benefits marketers