In-game ad spend projected to reach $11.5B by 2027

By Abimbola Mohammed

The In-game advertising market has recorded a significant growth in the past few years, so much so that the industry globally is expected to witness a significant increase in revenue reaching US$109.60bn by 2024, according to a report by Statista.

Furthermore, this market is expected to exhibit a steady annual growth rate (CAGR 2024-2027) of 9.91%, resulting in a projected market volume of US$145.50bn by 2027.

As games advertising continues to mature, it has become a reliable platform for delivering premium, high-quality inventory for brands and marketers.

The report added that when considering the global landscape, China is anticipated to be the leading revenue generator in the In-game advertising market, with projected revenue of US$46,610.00m in 2024.

In-game advertising is booming worldwide, with countries like the United States leading the way in implementing innovative and targeted advertising strategies within video games.

In the US alone, according to Entertainment Software America (ESA), there are 213 million gamers, while eMarketer projected that ad spend in games will surge from $8.53 billion in 2024 to $11.49 billion by 2027.

In-Game has become an integral and continuously growing part of the marketing mix so much so that 40% of advertisers plan to increase spend on games advertising in the coming year, while 86% of advertisers using games advertising surveyed agree  that it is of growing importance to their companies this is according to IAB report.

In the report by IAB titled “Changing the Game: How Games Advertising Powers Performance”, the first-of-its-kind analysis of brands and media agencies quantified the success, reach, and effectiveness of games advertising, shedding light on why it is a crucial component in the marketing mix.

Jack Koch, Senior Vice President, Research & Insights, IAB, said: “This is the first large-scale quantitative analysis of brands and agencies with experience purchasing games advertising. The study found that advertisers view games advertising as a measurable, brand safe medium that is effective across the entire consumer journey. Marketers can no longer afford to ignore this medium if they want to reach the more than 200 million U.S. consumers that play video games.”

Additionally, the report said 90% of advertisers attest to its effectiveness in reaching valuable, hard-to-reach audiences with relevant messaging. Further, 85% of advertisers recognize games advertising as a premium, high-quality platform for promoting their brands. With its ability to integrate immersive ad placements into user experiences, it offers a fresh and innovative approach to marketing.


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