In-game Advertising - GCC

GCC

Highlights

In the GCC, revenue in the In-game Advertising market market is projected to reach US$235.70m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 9.34%, resulting in a projected market volume of US$368.40m by 2029.
The average revenue per user (ARPU) in the GCC is expected to amount to US$17.34.
In global comparison, most revenue will be generated China, which is expected to reach US$46.61bn in 2024.
In the GCC, in-game advertising is rapidly gaining traction as brands increasingly seek to engage tech-savvy youth through immersive digital experiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in GCC has been witnessing significant growth in recent years, driven by changing customer preferences and the increasing popularity of gaming in the region.

Customer preferences: Customers in the GCC region have shown a growing interest in gaming, with a significant increase in the number of gamers and the amount of time spent playing games. This has created a lucrative opportunity for advertisers to reach a highly engaged audience through in-game advertising.

Trends in the market: One of the key trends in the In-game Advertising market in GCC is the integration of native advertising within games. Advertisers are increasingly incorporating their brand messages seamlessly into the gaming experience, making it more immersive and less intrusive for gamers. This trend has been well-received by customers, as it allows them to enjoy uninterrupted gameplay while still being exposed to relevant advertisements. Another trend in the market is the use of targeted advertising based on user data. Advertisers are leveraging the wealth of data available on gamers to deliver personalized and relevant ads. This not only improves the effectiveness of advertising campaigns but also enhances the overall gaming experience for users.

Local special circumstances: The GCC region has a young and tech-savvy population, which has contributed to the rapid growth of the gaming industry. With a high smartphone penetration rate and increasing internet connectivity, gamers in the region have easy access to a wide range of gaming platforms. This has created a fertile ground for the development of the In-game Advertising market. Furthermore, the GCC region is known for its high disposable income and affinity for luxury brands. Advertisers in the region have capitalized on this by partnering with popular gaming titles to promote their products and services. This has resulted in a win-win situation, where gamers get access to high-quality games, and advertisers are able to reach a desirable target audience.

Underlying macroeconomic factors: The GCC region has been experiencing steady economic growth, driven by factors such as diversification efforts, infrastructure development, and government initiatives to promote the digital economy. This economic stability has provided a conducive environment for the growth of the In-game Advertising market. Additionally, the COVID-19 pandemic has further accelerated the growth of the gaming industry in the GCC region. With lockdown measures and social distancing restrictions in place, people have turned to gaming as a form of entertainment and to stay connected with friends and family. This increased engagement with gaming has created new opportunities for advertisers to reach a captive audience through in-game advertising. In conclusion, the In-game Advertising market in GCC is witnessing significant growth due to changing customer preferences, the increasing popularity of gaming, and favorable macroeconomic factors. Advertisers are leveraging native advertising and targeted advertising to create immersive experiences for gamers, while the young and tech-savvy population in the region provides a receptive audience. The COVID-19 pandemic has further fueled the growth of the market, as gaming has become a popular form of entertainment during these challenging times.

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.