The global in game advertising market is expected to drive over the forecast period due to Increasing demand for social and mobile gaming. In-game advertising allows advertisements to be integrated into desktop and mobile games through commercials, cut-scenes, billboards, and background displays. Additionally, these advertisements are non-interrupting and facilitate a seamless experience for players. In-game advertisements are anticipated to cause greater audio-visual impact causing favorable and long-lasting product impressions on viewers.
Various benefits such as reduced advertising expenses increased reach and return on investments, rapid integration, and easy configuration of advertisements in social gaming are anticipated to drive the in the game advertising market. Further, the implementation of various payment schemes for gaming reduces frauds, which may propel market demand over the forecast period. The increasing availability of free mobile games utilizing in-game advertising to generate revenues is anticipated to propel market growth. This service may also generate added revenues for game developers, which is further expected to fuel market growth. In-game advertisements integrated with mobile games also enable location and tracking features, which may be utilized to provide location-specific advertisements to consumers resulting in greater consumer impact. The rising number of smartphone users in developing countries such as India and China coupled with a surge in the number of active online game players may provide an opportunity for in-game advertising market growth.
Increasing time and cost of developing new games coupled with reducing the product lifecycle is expected to hamper the market growth. The growing reluctance of gaming companies resulting from decreasing advertising revenues is anticipated to pose a challenge to the in-game advertising market.
Further, the need to restrict poorly designed advertisements with low consumer impact may pose a challenge to market growth. In addition, an increasing number of unrelated and over interrupting advertisements for online and social gaming is expected to negatively impact market growth.
The in game advertising market is broadly classified into online and standalone game advertising. Advertising in online or social games is anticipated to contribute significantly to the market growth due to higher consumer reach and faster integration. Standalone gaming integrations are both permanent and costly. Economical static advertisements are easy to integrate and account for a greater impact on consumers in comparatively lesser time. In-game advertisements are integrated into both desktop and mobile games. Dynamic real-time in game advertisements displayed as posters or hoarding during the gameplay may contribute significantly to market demand. Mobile game integrations may contribute significantly to market growth over the forecast period owing to the increasing use of smart devices.
Asia Pacific is anticipated to contribute significantly to the market growth owing to a surge in mobile gaming users and social gaming. India has witnessed a surge in mobile game players due to an increasing percentage of the young population and is expected to contribute a considerable share to market growth Europe and North America are anticipated to account for a significant market share in the in game advertising market over the forecast period.
Key market contributors include RapidFire, PlaywireMedia, Electronic Arts Inc., Double Fusion, Engage Advertising, Giftgaming, and Media Spike Inc. In May 2014, RapidFire acquired IGA Worldwide’s Radial Networks technology. The company is anticipated to account for a significant portion of the market share resulting from its extensive tie-ups with video game developers worldwide. Double Fusion may emerge as a major player in the online in game advertising market owing to its expertise in providing web-based in-game advertising services. In-game advertising startup In March 2015, Google launched player analytics and native advertisement tool for game developers. These tools enable developers to set revenue goals, boost purchases in-app, analyze player spending, and develop custom player specific advertisements. Electronic Arts Inc. is anticipated to develop technologies expected to make in-game advertisement integrations more scalable and automated.