In-game Advertising - Eastern Africa

  • Eastern Africa
  • In Eastern Africa, revenue in the In-game Advertising market market is projected to reach US$24.86m in 2024.
  • Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 7.64%, resulting in a projected market volume of US$35.93m by 2029.
  • The average revenue per user (ARPU) in Eastern Africa is expected to amount to US$0.29.
  • In global comparison, most revenue will be generated China, with a figure of US$46,610.00m in 2024.
  • In Kenya, the rise of mobile gaming is significantly driving the demand for innovative in-game advertising strategies among local brands seeking to enhance consumer engagement.

Key regions: China, India, United States, Germany, Europe

 
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Analyst Opinion

The In-game Advertising market in Eastern Africa is experiencing significant growth and development.

Customer preferences:
In this region, there is a growing preference for mobile gaming, with a large percentage of the population accessing games through their smartphones. This has created a lucrative market for in-game advertising, as advertisers can reach a wide audience through mobile gaming platforms. Additionally, there is a preference for free-to-play games, which rely on in-game advertising as a source of revenue.

Trends in the market:
One of the key trends in the In-game Advertising market in Eastern Africa is the increasing integration of local brands and products into games. Advertisers are recognizing the potential of reaching consumers through localized content, and are partnering with game developers to incorporate local brands and products into the gaming experience. This not only enhances the relevance of the advertising, but also creates a sense of familiarity and connection with the players. Another trend in the market is the use of gamification in advertising campaigns. Advertisers are leveraging the interactive and immersive nature of games to engage with consumers in a more meaningful way. This can involve creating branded mini-games within larger gaming platforms, or using in-game rewards and incentives to promote products or services. By gamifying their advertising campaigns, brands are able to capture the attention and interest of players, leading to higher levels of engagement and brand recall.

Local special circumstances:
Eastern Africa has a young and tech-savvy population, which contributes to the growth of the In-game Advertising market. With a high percentage of the population being under the age of 30, there is a strong demand for interactive and entertaining digital content. This has led to an increase in the popularity of mobile gaming, creating a fertile ground for in-game advertising. Furthermore, access to affordable smartphones and internet connectivity has significantly increased in recent years, making gaming more accessible to a larger portion of the population. This has resulted in a larger player base and greater opportunities for advertisers to reach their target audience through in-game advertising.

Underlying macroeconomic factors:
The economic growth and increasing disposable income in Eastern Africa have also contributed to the development of the In-game Advertising market. As the region's economies continue to grow, consumers have more purchasing power, leading to increased spending on leisure activities such as gaming. This provides a favorable environment for advertisers, as they can tap into a growing market of consumers who are willing to spend on in-game purchases or engage with in-game advertisements. Additionally, the digital advertising industry as a whole is experiencing rapid growth worldwide, and Eastern Africa is no exception. Advertisers are recognizing the effectiveness of digital advertising channels, including in-game advertising, in reaching their target audience. This has led to a shift in advertising budgets towards digital platforms, further driving the growth of the In-game Advertising market in Eastern Africa. In conclusion, the In-game Advertising market in Eastern Africa is developing due to customer preferences for mobile gaming and free-to-play games, the integration of local brands and products into games, the use of gamification in advertising campaigns, a young and tech-savvy population, increasing access to smartphones and internet connectivity, economic growth, and the overall growth of the digital advertising industry.

Methodology

Data coverage:

The data encompasses B2C revenues. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach / Market size:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., Consumer Insights), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.

Overview

  • Revenue
  • Analyst Opinion
  • Users
  • Key Players
  • Global Comparison
  • Methodology
  • Key Market Indicators
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