In-game Advertising - Italy

Italy

Highlights

In Italy, revenue in the In-game Advertising market market is projected to reach US$519.10m in 2024.
Revenue in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 10.59%, leading to a projected market volume of US$858.50m by 2029.
The average revenue per user (ARPU) in Italy is anticipated to amount to US$21.02.
In a global comparison, the majority of revenue will be generated China, with an expected figure of US$46.61bn in 2024.
In Italy, the rising popularity of mobile gaming is driving a surge in innovative in-game advertising strategies tailored to engage younger audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Italian gamers have shown a strong preference for in-game advertising. They appreciate the immersive experience that in-game ads provide, as it adds a sense of realism to their gaming sessions. Additionally, Italian gamers are generally accepting of in-game ads, as long as they are not intrusive or disruptive to their gameplay. They understand that in-game advertising helps to support game developers and keep the cost of games lower.

Trends in the market: One of the key trends in the Italian In-game Advertising market is the increasing use of native ads. Game developers are integrating ads seamlessly into the gameplay, making them feel like a natural part of the gaming experience. This approach ensures that the ads do not disrupt the flow of the game and are more likely to be accepted by gamers. Another trend in the market is the rise of programmatic advertising. Advertisers are using data and algorithms to target specific audiences within games, ensuring that their ads reach the right players at the right time. This targeted approach increases the effectiveness of in-game advertising and improves the return on investment for advertisers.

Local special circumstances: Italy has a vibrant gaming culture, with a large number of gamers across different age groups. This provides a significant audience for in-game advertising. Additionally, the Italian gaming market is dominated by mobile gaming, which presents a unique opportunity for advertisers. Mobile games are often played on smartphones and tablets, which are personal devices that are frequently used throughout the day. This allows advertisers to reach gamers at various touchpoints, increasing the visibility and impact of their ads.

Underlying macroeconomic factors: The growth of the In-game Advertising market in Italy is also influenced by macroeconomic factors. The Italian economy has been steadily recovering from the global financial crisis, leading to increased consumer spending power. As a result, advertisers have more resources to invest in in-game advertising campaigns. Furthermore, the COVID-19 pandemic has accelerated the growth of the gaming industry, as people turned to gaming for entertainment during lockdowns. This increased engagement with games has created a larger audience for in-game advertising. In conclusion, the In-game Advertising market in Italy is experiencing growth and development due to customer preferences for immersive and non-intrusive ads, the rise of native and programmatic advertising, the vibrant gaming culture in Italy, and the underlying macroeconomic factors such as the recovering economy and the impact of the COVID-19 pandemic.

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.