Market Insights Advertising & Media Media Games

In-game Advertising - G7

In G7, revenue in the In-game Advertising market market is projected to reach US$53.18bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.55%, leading to a projected market volume of US$83.90bn by 2029.
The average revenue per user (ARPU) in G7 is anticipated to amount to US$134.60.
In a global context, most revenue will be generated China, which is expected to reach US$46,610.00m in 2024.
In the United States, in-game advertising is increasingly recognized as a pivotal strategy for brands seeking to engage younger audiences through immersive digital experiences.

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

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Analyst Opinion

The In-game Advertising market in G7 has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the In-game Advertising market in G7 is the changing preferences of customers. With the increasing popularity of video games and the rise of mobile gaming, more and more people are spending their time playing games. As a result, advertisers have recognized the opportunity to reach a large and engaged audience through in-game advertising.

Trends in the market: The In-game Advertising market in G7 is characterized by several key trends. Firstly, there has been a shift towards native advertising, where ads are seamlessly integrated into the game environment. This approach allows for a more immersive and less disruptive advertising experience for players. Secondly, there has been a rise in programmatic advertising, which enables advertisers to target specific demographics and deliver personalized ads in real-time. This trend has been driven by advancements in technology and data analytics. Lastly, there has been an increase in the use of virtual reality (VR) and augmented reality (AR) in games, which offers new opportunities for advertisers to create interactive and engaging ad experiences.

Local special circumstances: Each country in the G7 has its own unique characteristics and local special circumstances that contribute to the development of the In-game Advertising market. For example, in the United States, the high penetration of smartphones and the popularity of eSports have fueled the growth of in-game advertising. In Japan, where gaming is deeply ingrained in the culture, in-game advertising has become a common practice. In Germany, there are strict regulations on advertising, which has led to the development of innovative and non-intrusive ad formats in games.

Underlying macroeconomic factors: Several macroeconomic factors have also contributed to the growth of the In-game Advertising market in G7. Firstly, the growing global economy has led to an increase in disposable income, allowing more people to spend money on games and in-game purchases. Secondly, the advancements in technology have made games more accessible and appealing to a wider audience. This has resulted in a larger player base and more opportunities for advertisers to reach consumers. Lastly, the increasing popularity of social media and online platforms has created a demand for new and innovative ways to engage with consumers, and in-game advertising provides a unique and interactive solution.

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.