The global gaming market has reached an annual turnover of $200 billion. With the introduction of in-game advertising, this figure will increase exponentially.
The global gaming market has reached an annual revenue of approximately $200 billion. Although advertisers have not yet fully utilized this huge market potential, it is certain that in-game ads will appear more in the coming period.
Global Gaming Market Reaches $200 Billion, Creating New Advertising Opportunities
WARC Media’s latest Global Advertising Trends report highlights the huge transformational potential for advertisers in the gaming industry. The global gaming industry generates $183.9 billion in annual revenue, surpassing the music and film industries. WARC’s report says that the gaming industry represents a significant growth opportunity for advertisers due to its ability to reach a wide range of age groups and its transformational potential. This is evident in the fact that ad spend in the industry is expected to increase by just 10% to $6.7 billion by 2024.
Despite advertiser interest in in-game ads decreasing, revenue from in-app game ads increased by 26.7%. Advertisers who did not direct their spend to in-game ads were missing out on a large audience, including 72% of 35-54 year olds and 46% of 55+ year olds who play games at least once a week.
Recently, brands such as Netflix and The New York Times have also invested in the gaming sector. Netflix, which spent $ 1 billion on its gaming business that it launched three years ago, announced a 200% increase in downloads since 2022. The New York Times, on the other hand, managed to retain users on other digital platforms by investing in gaming content.
When we make an assessment in light of this information, we see that it is not too distant in the future that we will encounter ads in PC and console games, as we have previously discussed. In addition, Microsoft’s Xbox Game Pass model with ads and Netflix’s work on Subscription systems with ads also reveal the high expectations in this market.
There has been discussion before about using advertisements on boards during matches in games like FIFA (the new EA FC series). Although such advertisements won’t bother us much, having advertisements in linear games like Assassin’s Creed or God of War doesn’t seem like a very exciting development as it will affect our gaming experience.
Advertisers are aware of the huge potential in the global gaming market, but they continue to tread cautiously in this complex and rapidly evolving ecosystem. The opportunities offered by in-game advertising, when combined with the right strategies, can play a significant role in reaching new audiences and increasing revenue for brands. However, in order to fully exploit these opportunities, it is necessary to closely follow the dynamics and trends in the industry.