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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 growth and trends in the market are intricately linked to several key factors. One significant driver is the exponential increase in the number of gamers worldwide, fueling the demand for immersive experiences. Additionally, the burgeoning partnerships between advertisers and video game companies have led to innovative approaches in dynamic in-game advertising, creating new revenue streams and enhancing player engagement. The market is further propelled by the surging demand for mobile gaming, driven by the convenience and accessibility it offers to a diverse range of players. These trends underscore the dynamic nature of the industry, highlighting the importance of adaptability and innovation in meeting evolving consumer preferences and market demands.
The market research report forecasts include detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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
The market is driven by background displays and non-interruptive advertisements that seamlessly integrate into gaming experiences, enhancing audio-visual impact without disrupting gameplay. However, challenges like limited game support and incompatible devices can hinder effective ad delivery. Trends show a rise in mobile gaming and desktop games, creating opportunities for targeted interactive ads and product impressions. As game publishers and the industry embrace digital advancements, optimizing ads for smartphones and tablets becomes crucial for market growth and innovation. Our researchers analyzed the data with 2023 as the base year, along with the market trends and analysis, drivers, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising demand for mobile gaming is notably driving the market. The mobile gaming segment is expanding with the increase in the penetration of mobile devices including smartphones and tablets. In addition, mobile games are becoming a large part of the industry as many companies are focusing on app design. Furthermore, consumers can install gaming apps from app stores such as Google Play Store and Apple App Store.
Moreover, the popularity of mobile gaming is increasing as many game developers are adopting the freemium model wherein the initial level of a game is offered free of cost, and users need to pay to access the advanced levels. In addition, freemium games are generating higher revenue than premium games, especially with in-game advertising. Furthermore, the demand for these mobile games is increasing due to the rise in the use of smartphones. Hence, such factors are driving the market during the forecast period.
The emergence of programmatic in-game advertisements is a primary trend in the market. Programmatic advertisement buying encourages consumers to automate their decision-making process of buying in-game advertisements by targeting specific demographics and audiences. In addition, these advertisements are placed using real-time bidding (RTB) and artificial intelligence (AI) for online games. Furthermore, before programmatic advertisement buying, in-game advertisements were sold and bought by salespeople, which can be expensive.
Moreover, programmatic advertisement technology helps in making the advertisement buying system more efficient, and by removing humans from the process, the buying process has also become cheaper. Furthermore, in the traditional method of buying an in-game advertisement, advertisers require proposals, quotes, tenders, and human negotiation, whereas, in programmatic in-game advertisement buying, advertisers use algorithms for purchasing the display space. Hence, such factors are driving the market during the forecast period.
Unrelated placements of advertisements are a major challenge hindering the market. The placement of advertisements is one of the main factors for in-game advertising, as it should be in the context of the flow of the game. In addition, advertising enterprises need to strategically place the advertisement in the game in a way that does not look out of context to gamers, and it should also offer exclusivity for advertisers in the game.
Moreover, advertising enterprises and advertisers should also decide whether such placement will be dynamic or static within the context of the game. However, some of the advertising enterprises fail to do so, which tends to disturb the gaming experience of gamers as well as affect the brand image of advertisers. Hence, such factors are hindering the market during the forecast period.
In the market, background displays play a crucial role in creating an immersive gaming experience without interrupting gameplay, aligning with the demand for non-interruptive advertisements that maintain the audio-visual impact of the game. This market segment faces challenges such as limited game support for advertising, issues with incompatible devices, and the need to optimize background displays for various users' devices including computers, smartphones, and tablets. Video games, both mobile and desktop, are prime platforms for in-game advertising, utilizing elements like cutscenes and billboards to showcase product impressions seamlessly within the gaming environment. Mobile gaming has seen significant growth, attracting game publishers and advertisers to leverage interactive ads and other formats tailored to smartphones and tablets. This dynamic landscape within the gaming industry highlights the importance of targeted in-game advertising strategies to engage players effectively across different platforms.
The mobile segment is estimated to witness significant growth during the forecast period. Mobile gaming comprises a large portion of the global market. In addition, in 2021, the penetration of smartphones was 45%-50% across the globe, and about half of the mobile application users played games on their phones. Furthermore, the availability of low-cost, large-screen mobile devices with high display resolution has enhanced the gaming experience of people, which is encouraging people to opt for mobile gaming.
Figure 2: In-Game Advertising Market by Platform (2018-2028)
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The mobile segment was the largest segment and was valued at USD 2.05 billion in 2018. For example, the mobile gaming segment contributed 43%-47% of the revenue generated by the global market in 2021. In addition, mobile-based software is constantly dominating online stores such as Apple's App Store and Google Play compared with other application software. Furthermore, in 2019, about half of the mobile application users used to play games. In addition, the in-game advertising in mobile games will enable advertisers to reach a large and diverse customer base. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Based on the type, the market has been segmented into static ads, dynamic ads, and advergaming. The static ads segment will account for the largest share of this segment. In this segment, enterprises can choose the frequency and time of ads, especially while targeting a specific group of customers. For example, if the ad is regarding an ice cream parlor, enterprises can choose to display that ad when the outside temperature is above a certain limit. Moreover, if the ad is about a stationery shop, the enterprises can choose to display that ad during the time parents drop off and pick up their kids from school. In addition, due to technological advances, digital advertising displays can be connected to customers' mobile devices, which further redirect them to the enterprises' social media account or their websites. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Figure 3: Market by Region
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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.
Another region offering significant growth opportunities to companies is North America. The market is expected to grow in North America as mobile and console gaming are gaining popularity as a pastime in countries including the US and Canada. In addition, the penetration of smartphones and the Internet in these countries is high, which tends to increase the number of mobile gamers. For example, there were around 36.74 million internet users in Canada in January 2024. Moreover, Canada's internet penetration stood at around 94.3 percent of the total population at the beginning of 2024. In addition, the number of internet users in Canada grew by around 1.2 percent from January 2023 to January 2024. Therefore, such widespread internet penetration in various countries in the region increases access to online gaming platforms and content. Hence, the audience for in-game advertising expands, allowing advertisers to reach a larger and more diverse demographic of players across different regions and demographics. Thus, such factors are driving the market in North America during the forecast period.
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 immersive ads without interrupting game flow, under its brand called AdInMo InGamePlay.
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.
The market is a rapidly evolving sector driven by the convergence of desktop games and smartphone/tablet gaming, targeting diverse gaming audiences. This market capitalizes on various advertising formats such as cutscenes, billboards, on-screen advertisements, static ads, dynamic ads, interactive ads, and Native Ads to create an impactful audio-visual experience for players. With advancements in digital media and mobile technology, in-game advertising has expanded to include advergaming, digital content, and subscription services tailored to gaming platforms like PC/laptop, smartphones, and consoles.
Moreover, the rise of e-sports, social gaming, and online multiplayer games further amplifies the reach of in-game ads, leveraging social media traffic and online advertising services. Brands and game publishers collaborate to deliver customized advertising and data-driven strategies, optimizing product impressions and engaging relevant gaming audiences across connected devices and digital platforms. As the market continues to grow, innovations in virtual reality gaming, augmented reality, and gift gaming are reshaping the landscape, offering new avenues for ad formats and mobile phone advertising within the gaming ecosystem.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.87% |
Market Growth 2024-2028 |
USD 6.07 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.64 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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