The majority of advertisers (93%) noted a rise in video game ad spend over the last 12 months, according to research from Admix, the in-game ad platform.
With gamers spending approximately $176 billion on games in 2021 alone, the channel is set for some exciting opportunities.
81% of media buyers are planning to increase or keep their in-game ad spend over the coming 12 months the same. Some 93% want to run in-gam ads by 2025.
“Just as the desktop web was the dominant media channel for the 2000s, surpassed by social media in the 2010s, video gaming is now on the cusp of claiming the crown of key media channel,” said Samuel Huber, CEO and Co-founder at Admix. “However, although buyers are broadly aware of this, the survey reveals that they appear to underestimate how close we are to it becoming a reality.”
What’s driving the rapid option of in-game advertising are the technological advancements underlying these changes including programmatic options, third-party certification and a rise in demand for in-game inventory.
However, a fifth of media buyers noted that there was still a lack of understanding when it came to reasons for investing with 31% saying it was a grey area.
Marketers have noted that gaming is a huge market with 34% dying that gamer spending ranges between $100 and $500 billion.
Media buyers somewhat underestimate the scale and diversity of gaming audiences.
A third believe there are between 100 and 500 million active daily gamers while 27% think there are 500 million and 1 billion. In reality, there are 3 billion active daily gamers globally.
“With over three billion gamers generating hundreds of billion dollars in annual revenues, it’s impossible to ignore video gaming as the next key media channel. Indeed, it’s no surprise that Netflix sees Fortnite as a bigger competitor than other video on-demand platforms,” Huber added. “But while media buyers are certainly aware of gaming’s potential as a media channel, it’s clear from the findings of this survey that they’re less certain about how to access it. Gaming is still a massive, intangible opportunity in the minds of many advertisers. Education is needed, therefore, to give them the knowledge and confidence they need to access it in a meaningful way with In-Play; and reap the rewards it represents.”