In-game Advertising - Eastern Asia

Eastern Asia

Highlights

In Eastern Asia, revenue in the In-game Advertising market market is projected to reach US$50.77bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.50%, resulting in a projected market volume of US$76.34bn by 2029.
The average revenue per user (ARPU) is expected to amount to US$57.45.
In global comparison, most revenue will be generated China, amounting to US$46.61bn in 2024.
In South Korea, in-game advertising is rapidly evolving, driven by high mobile gaming penetration and innovative partnerships between brands and game developers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in Eastern Asia has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth in the In-game Advertising market in Eastern Asia is the increasing popularity of online gaming in the region. Eastern Asia has a large population of avid gamers who spend a significant amount of time playing video games. These gamers are often receptive to in-game advertising as long as it is integrated seamlessly into the gaming experience. They appreciate advertisements that are relevant, non-intrusive, and enhance their gaming experience rather than disrupt it.

Trends in the market: One of the key trends in the In-game Advertising market in Eastern Asia is the rise of mobile gaming. Mobile gaming has become increasingly popular in the region due to the widespread adoption of smartphones and the convenience they offer. As a result, advertisers are increasingly focusing on mobile in-game advertising to reach the growing audience of mobile gamers. In addition, the rise of e-sports has also contributed to the growth of in-game advertising in Eastern Asia. E-sports events attract a large number of viewers, both online and offline, providing advertisers with an opportunity to reach a highly engaged audience.

Local special circumstances: Eastern Asia has a unique gaming culture that has shaped the development of the In-game Advertising market in the region. Gaming is not only seen as a form of entertainment but also as a social activity. Many gamers in Eastern Asia play games with their friends and participate in online communities centered around gaming. This social aspect of gaming presents advertisers with an opportunity to engage with a highly connected and influential audience. Advertisements that are shared and discussed within these gaming communities can have a significant impact on brand awareness and perception.

Underlying macroeconomic factors: The strong economic growth in countries like China, Japan, and South Korea has also contributed to the growth of the In-game Advertising market in Eastern Asia. As disposable incomes rise, consumers have more spending power, which translates into increased spending on video games and in-game purchases. This provides advertisers with a larger audience to target and a greater potential for return on investment. Additionally, the growing middle class in Eastern Asia has led to an increase in the number of gamers, further fueling the demand for in-game advertising. In conclusion, the In-game Advertising market in Eastern Asia is thriving due to the increasing popularity of online gaming, the rise of mobile gaming, the emergence of e-sports, the unique gaming culture in the region, and the strong macroeconomic factors. Advertisers in Eastern Asia have a unique opportunity to engage with a highly receptive audience and drive brand awareness and sales through in-game advertising.

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.