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The in-game advertising (IGA) market size is forecast to increase by USD 6.07 billion at a CAGR of 13.87% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing number of gamers worldwide and the expanding partnerships between advertisers and video game companies. This trend is further fueled by the incorporation of Natural Language Processing (NLP) technology in in-game advertising, enabling more targeted and personalized ads. However, the market also faces challenges, such as the growing use of advertisement blocking solutions, which limit the reach and effectiveness of in-game ads. To mitigate this, advertisers are exploring innovative strategies, including non-intrusive ad formats and reward-based advertising, to enhance user experience and maintain engagement. Overall, the market is poised for continued growth, driven by advancements in technology and the evolving needs of advertisers and gamers alike.
The market refers to the promotion of products or services within digital gaming platforms, including mobile games and desktop games. This marketing strategy utilizes various formats such as billboards, background displays, cut-scenes, banners, videos, and interactive ads. Mobile games and mobile gaming have seen significant growth in recent years, leading to a wave in in-game advertising. In contrast, desktop games still offer a substantial market for advertisers, particularly through cut-scenes and background displays. In-game advertisements provide an audio-visual impact that can create product impressions on users, making it an effective marketing strategy. However, the success of in-game advertising depends on the compatibility of the ads with the user's devices and the limited support for certain games. Games are increasingly embracing in-game advertising as a revenue stream, with companies investing in innovative ad formats to create a pleasant user experience. The Digital Gaming Industry continues to grow, driven by the popularity of smartphones and tablets, offering ample opportunities for businesses to reach their target audience through in-game advertising.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The mobile segment is estimated to witness significant growth during the forecast period. The gaming population continues to expand, with mobile technology playing a significant role in its growth. In 2021, approximately half of the mobile application users engaged in gaming, driven by the widespread availability of affordable, high-quality smartphones. Mobile gaming now accounts for a substantial portion of the digital media landscape, generating 43%-47% of the global gaming market's revenue. Mobile gaming apps outshine other software on platforms like Apple's App Store and Google Play. Social media platforms have also entered the gaming space, with social gaming and streaming becoming increasingly popular. Games like Animal Crossing, League of Legends, and T1 Entertainment & Sports' esports events have attracted massive user bases.
Digital advertisements, including in-app and incentive-based advertisements, have become essential revenue streams for games such as DVloper, Frameplay, Gamestack, and others. As mobile phone gaming continues to dominate the game ecosystem, the demand for online multiplayer games, online advertising services, and digital content subscription services is expected to rise. In-game video ads are also gaining traction, offering advertisers a unique opportunity to reach their target audience within the game space.
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The mobile segment was valued at USD 2.05 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The gaming population in North America is expanding due to the rising popularity of mobile and console gaming in countries like the US and Canada. With a high penetration of smartphones and the Internet, the number of mobile gamers is increasing significantly. For instance, Canada had approximately 36.74 million internet users in January 2024, representing a 94.3% internet penetration rate among its population. This figure grew by around 1.2% from January 2023. The digital media advertising landscape is evolving, with in-game advertising emerging as a promising avenue for reaching this demographic. Social media platforms are also integrating gaming elements, further blurring the lines between social networking and gaming. In-game advertisements on computers, consoles, and mobile devices are becoming increasingly common in online multiplayer games like League of Legends, Animal Crossing, and casual mobile games.
Further, advertisers and games are leveraging digital platforms to reach their audiences through various forms of in-game advertising, such as product impressions, subscription services, in-app advertisements, incentive-based advertisements, and in-game video. T1 Entertainment & Sports, DVloper, Frameplay, Gamestack, and other players in the mobile ecosystem are capitalizing on this trend to monetize the game space and provide digital content to gamers. The Olympic Games have also entered the digital age, with sponsors using in-game advertising to reach audiences on various platforms. Overall, the market is expected to experience substantial growth in North America due to the increasing demand from mobile gamers and the expanding digital advertising services market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in number of gamers and growing partnerships between advertisers and video game companies is the key driver of the market. The gaming industry's expansion, fueled by the rise of free-to-play digital games like Apex Legends and Fortnite, is projected to surpass USD 300 billion by 2025, attracting over 2.4 billion gamers worldwide. Brands are increasingly recognizing the value of in-game advertising to engage with relevant gaming audiences. In-game advertising encompasses various formats, including banners, videos, and interactive ads, making it a versatile marketing channel. The market's growth is further driven by the increasing collaborations between games and advertisers, who seek to showcase their products within gaming environments. The gaming industry's reach extends to connected devices such as tablets, mobile phones, PCs, consoles, and emerging technologies like virtual reality (VR), augmented reality (AR), esports, and streaming platforms.
Customized advertising within these platforms ensures brands connect with their target demographics more effectively.
The incorporation of NLP with in-game advertising is the upcoming trend in the market. In-game advertising has emerged as a significant marketing channel in the digital gaming industry, particularly for reaching relevant gaming audiences. Brands are increasingly utilizing data-driven in-game advertising strategies to engage with gamers in a more inherent way. Neuro-Linguistic Programming (NLP) is a tool used by marketing enterprises to analyze gamers' emotions, thoughts, and behaviors to create customized advertising experiences. NLP enables the integration of smart ad formats into game loops, such as banners, videos, and interactive ads, at opportune moments when gamers are receptive. For instance, during free-to-play games, interstitial ads can be displayed when a gamer is about to lose a level or during a break in gameplay.
Esports and streaming platforms are also popular avenues for in-game advertising, with brands leveraging virtual reality, augmented reality, and customized ad formats to reach engaged audiences. Mobile gaming companies, PC gaming, and console gaming are also adopting in-game advertising to monetize their platforms effectively.
The growing use of advertisement blocking solutions is a key challenge affecting the market growth. In-game advertising has emerged as a significant revenue stream in the digital gaming industry, with various formats such as banner ads, videos, and interactive ads reaching relevant gaming audiences. Brands are increasingly utilizing this space to connect with consumers, especially those engaged in free-to-play games, esports, and virtual reality gaming. However, intrusive advertisements can negatively impact player experience, leading some gamers to employ ad-blocking solutions. These solutions, available on connected devices like mobile phones, tablets, and PCs, can prevent banner ads, interstitial ads, and video ads from disrupting gameplay. VPN applications with built-in ad-blockers offer an additional layer of protection for gamers seeking uninterrupted gaming experiences.
As the gaming industry continues to evolve, data-driven in-game advertising and customized ad formats like giftgaming are expected to gain popularity, providing more value to both gamers and advertisers. Streaming platforms and mobile gaming companies are also exploring innovative ad formats in augmented reality and virtual reality gaming to engage audiences in new ways.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AdInMo Ltd. - The company offers in game advertising services such as click-free ads without interrupting game flow, under its brand called AdInMo InGamePlay.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In-game advertising (IGA) refers to promotional content integrated into mobile games and desktop games. It includes cut-scenes, billboards, background displays, and non-interruptive advertisements with minimal audio-visual impact. However, limited games support and incompatible devices, such as memory issues, can hinder its growth. IGA is prevalent in mobile games, with online portals, social networking sites, and social media traffic driving significant digital-content-focused segments. Companies like Riot Games use IGA in the form of pop-up messages and on-screen advertisements for B2C and C2C marketing. Advergaming, a subset of IGA, offers interactive experiences, enhancing user engagement. Internet penetration and online gaming's rise, especially multiplayer games and location-based games, boost the market's potential. The market comprises static ads, dynamic ads, and advergaming sub-segments, with the latter two gaining popularity due to their ability to provide personalized and engaging experiences. PC/laptop and smartphone/tablet are the primary devices for IGA, with the latter dominating the market due to its widespread usage.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.87% |
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Market Growth 2024-2028 |
USD 6.07 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.64 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AdInMo Ltd., Adverty AB, Alphabet Inc., Anzu Virtual Reality Ltd., Bidstack Ltd., Digital Turbine Inc., HotPlay, InMobi Pte. Ltd., Landvault, Liftoff Inc., Microsoft Corp., Motive Interactive Inc., Playwire LLC, RapidFire Inc., Unity Software Inc., Verizon Communications Inc., WAMGROUP Spa, and WPP Plc |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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