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Extensive research carried out by the analysts at Technavio has shown that the global video games advertising market is expected to grow at a fast pace and will post a CAGR of close to 14% over the forecast period. Advertising through video games gives brands the advantage of customizing the ad based on the demographics of the gamer. Such advertisements have higher relevance compared to TV commercials since advertising agencies collect and record data about the consumers' buying preference. Also, video game ads get more attention as most of the gamers are usually very engrossed in the game and cannot skip the advertising messages. On an average, consumers only spend 45 seconds on TV advertisements, while a gamer spends 300 seconds on an ad in the video game. Moreover, these advertisements are strategically placed to appeal to the gamers. When a gamer reaches the required destination or level, an ad is placed in there to enable the player to relate the ad with victory in the game. The effective and strategic placement of advertisements will boost this market’s growth in the coming years.
One of the notable trends in the global video game advertising market is the augmented use of social media for advertising video games. The number of social media users has crossed 2.1 billion in 2015. Due to its widespread reach, social media is becoming one of the lucrative platforms for advertising since it connects to a large segment of gamers from around the world. Furthermore, social media platforms provide advertisers with efficient targeting options and enhanced conversion tracking since these media platforms also take advantage of the user’s interests. Identifying the gamer's interests allows advertising agencies to display ads according to the user’s preferences.
The global video games advertising market is highly competitive with the majority of the players competing to gain more market shares. Intense competition, strategic M&As, rapid advances in technology, and frequent changes in consumer preference are some of the significant risks faced by the vendors in the market. With increased competition, the market is expected to witness consolidation in the coming years.
Key vendors in this market are -
Other prominent vendors in the market include AppNexus, Byyd, Fiksu, iAd, Kiip, Matomy Media, Millennial Media, Platform One, MobPartner, MoPub, Tapjoy, SpotXchange, Tremor Video, and TubeMogul.
During 2015, the action games segment dominated the market and accounted for close to 22% of the market share in terms of revenue. Action games are one of the oldest genres of video games and consists of action, arcade and platform games. In these games, the gamer controls the avatar to accomplish various tasks or missions by collecting value-points, defeating enemies, and avoiding obstacles. The scope for video game advertising, especially for native advertising, is relatively low in such games because of the small gaming area. Interstitial and banner ads are the most commonly seen advertisements in this segment.
In terms of geography, the APAC region dominated the global video games advertising market and is expected to reach more than USD 4 billion by 2020. The video games advertising market in APAC is heavily influenced by the high popularity of video games. In fact, APAC is the hub of gaming and the largest market for video gaming, especially in the Far East. Gaming is gaining popularity as a career choice for people in this region and advertisers are rapidly leveraging the increasing video game penetration in the region. These factors are anticipated to propel the growth of this market over the next four years.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by type
PART 07: Market segmentation by genre
PART 08: Geographical segmentation
PART 09: Key leading countries
PART 10: Market drivers
PART 11: Impact of drivers
PART 12: Market challenges
PART 13: Impact of drivers and challenges
PART 14: Market trends
PART 15: Vendor landscape
PART 16: Explore Technavio
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