In-game Advertising - EU-27

EU-27

Highlights

In the EU-27, revenue in the In-game Advertising market market is projected to reach US$4.95bn in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.54%, leading to a projected market volume of US$7.81bn by 2029.
The average revenue per user (ARPU) in this market is anticipated to amount to US$32.82.
In a global context, it is noteworthy that the majority of revenue will be generated China, with an estimated US$46.61bn in 2024.
In the EU-27, in-game advertising is increasingly recognized as a vital strategy for brands seeking to engage the digitally savvy youth demographic.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in EU-27 is experiencing significant growth and development due to several key factors. Customer preferences are shifting towards immersive gaming experiences, creating a demand for in-game advertisements that seamlessly integrate with gameplay. Additionally, the rise of mobile gaming and the increasing popularity of esports are driving the expansion of the market. Local special circumstances, such as the high internet penetration rate and the presence of major gaming companies in the region, further contribute to the growth of in-game advertising. Customer preferences in the EU-27 are increasingly focused on immersive gaming experiences. Players are seeking games that offer realistic graphics, engaging storylines, and interactive gameplay. In-game advertising provides an opportunity to enhance these experiences by incorporating branded content into the game environment. This allows advertisers to reach a captive audience and create a more interactive and engaging advertising experience. The rise of mobile gaming is another major factor driving the growth of in-game advertising in the EU-27. Mobile gaming has become increasingly popular, with a large portion of the population using smartphones and tablets to play games. This has created a vast audience for in-game advertisements, as mobile games often offer free-to-play options that are supported by advertising revenue. Advertisers are capitalizing on this trend by creating mobile-friendly advertisements that seamlessly integrate with the gaming experience. Esports, or competitive video gaming, is also contributing to the growth of in-game advertising in the EU-27. Esports events attract millions of viewers, both online and in-person, creating a valuable advertising opportunity. In-game advertisements can be strategically placed during these events, reaching a highly engaged audience of gaming enthusiasts. Advertisers are recognizing the potential of esports as a marketing platform and are investing in in-game advertising to capitalize on this growing trend. The EU-27 region also benefits from several local special circumstances that contribute to the growth of in-game advertising. The region has a high internet penetration rate, with a large portion of the population having access to high-speed internet. This allows for seamless integration of in-game advertisements and ensures a smooth gaming experience for players. Additionally, the EU-27 is home to several major gaming companies, which provides a strong foundation for the development and expansion of the in-game advertising market. Underlying macroeconomic factors also play a role in the growth of in-game advertising in the EU-27. The region has a strong economy and a large consumer market, creating opportunities for advertisers to reach a wide audience. Additionally, advancements in technology and the increasing availability of gaming platforms have made it easier for advertisers to incorporate in-game advertisements into their marketing strategies. Overall, the In-game Advertising market in EU-27 is experiencing significant growth and development due to shifting customer preferences, the rise of mobile gaming and esports, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, advertisers will need to adapt their strategies to effectively reach and engage with the gaming audience.

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.