Dentsu introduces gaming solution as in-game advertising shoots through the roof

By Zion Rufus

International advertising and PR company, Dentsu has launched Dentsu Gaming– an integrated gaming solution for brands which seeks to help clients explore various offerings of video game advertising such as Strategy, In-game Advertising, Commerce & Consumer Promotion, Talent & Social, IP Development, Native Game Integration, Augmented Reality (AR) / Virtual reality (VR), and Esports & Experiential.

To date, in-game advertising has been classified as a subset of digital advertising. Advertisers are beginning to incorporate in-game advertising into their media buying strategy to capitalize on the reach that gaming offers. In-game advertising is the practice of using games particularly Web-based games, to promote an organization’s brand, product, or even the launch of a new one.

Speaking on the launch of Dentsu Gaming, the company shared in a statement: “At dentsu, we believe that everyone is a gamer – ​a community connected across borders ​around the things they love. ​Our global network was built to bring gaming’s explosive growth to our clients through innovative partnerships, products and solutions.​ We bring together passionate, multifaceted expertise to help bring incremental value to clients through ​mutually beneficial relationships with​ game publishers, partners and platforms​.”

According to the ad agency, gaming’s ever-increasing influence on culture, coupled with the promise of the metaverse, has created limitless opportunities for marketers and advertisers. Gaming has moved from individual play to spectator involvement with the meteoric rise of esports and streaming platforms. Gaming platforms are now a primary channel for social interactions and self-expression.

Compared to decades ago, the current spending power of the millennials and the Gen Z youths have skyrocketed the ROI of several digital platforms and made them effective channels for communication. The channel has also evolved into one that offers many of the same campaign measurements that other platforms already have and is ready for its prime-time debut into the media ecosystem. As a result, advertisers are beginning to fully leverage these developments as gaming has become more immersive, enriching, and personalized.

According to analytics collated by Reportlinker, the In-Game Advertising market in the U.S. is estimated at US$873.3 Million in the year 2020. China, the world’s second largest economy, in-game advertising is forecast to reach a projected market size of US$1.3 Billion by the year 2027 trailing a CAGR of 13.4% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.3% and 8.8% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 8% CAGR.

Marketers are increasingly buying into the in-game medium as the monetization continues to grow rapidly across mobile gaming clients, wider reach of diverse and engaged audience, the growth of e-sports at a phenomenal rate, and the implementation of sophisticated technology solutions.

2021 has been projected as the year In-game advertising measurement comes to full potential as it has paved the way for the emergence of a new framework which will focus on metrics such as viewability, visual engagement and brand recall. In-game advertising has the opportunity to reach millions of focused and engaged gamers, but as an increasing number of brands look to move their digital ad spend in-game, measuring ROI will be called into question and become an understandable area of focus.

As the year unfolds and technology evolves with the emergence of Augmented reality, Artificial intelligence, and virtual reality, brands will also continue to increase in-app marketing spend, due to changes in online data privacy, the advent of 5G, increased time spent playing games, and the ever-expanding types of audiences that play games globally.

The dentsu gaming solution will be accessible through its production, creative, CXM and media agencies globally, including Carat, dentsu X, iProspect, Isobar, dentsumcgarrybowen, Merkle and the Content Business Design Centre (CBDC) within dentsu Inc. As a new global solution, dentsu gaming provides access to specialist strategy, activation and original intellectual property (IP) development for brands seeking to connect with and navigate the gaming ecosystem.


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