In-game Advertising - NAFTA

NAFTA

Highlights

In the NAFTA region, revenue in the In-game Advertising market market is projected to reach US$44.39bn in 2024.
This revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.65%, resulting in a projected market volume of US$70.35bn by 2029.
Furthermore, the average revenue per user (ARPU) in this market is anticipated to amount to US$156.20.
In global comparison, it is noteworthy that most revenue will be generated China, with an estimated figure of US$46.61bn in 2024.
In the United States, in-game advertising is increasingly integrated into mainstream media strategies, enhancing brand engagement among younger, tech-savvy audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in NAFTA is experiencing significant growth and development due to several key factors. Customer preferences are shifting towards more immersive and interactive gaming experiences, creating a fertile ground for in-game advertising. Additionally, the rise of mobile gaming and the increasing popularity of esports are driving the demand for in-game advertising opportunities.

Customer preferences: Customers are increasingly seeking more immersive and interactive gaming experiences. Traditional forms of advertising, such as television commercials or banner ads, are often seen as interruptive and intrusive. In-game advertising offers a more seamless and integrated approach, allowing brands to engage with gamers in a non-disruptive manner. This form of advertising allows for greater creativity and personalization, enhancing the overall gaming experience.

Trends in the market: The rise of mobile gaming has been a significant driver of the in-game advertising market in NAFTA. Mobile games are easily accessible and have a large user base, making them an attractive platform for advertisers. In-game advertising in mobile games can take various forms, such as branded content, sponsored levels, or virtual goods, providing advertisers with a range of options to reach their target audience. Another trend in the market is the increasing popularity of esports. Esports events attract millions of viewers, both online and in-person, creating a valuable opportunity for advertisers. In-game advertising during esports tournaments allows brands to reach a highly engaged and passionate audience, further enhancing brand visibility and recognition.

Local special circumstances: The NAFTA region, consisting of the United States, Canada, and Mexico, has a large and diverse gaming market. The United States, in particular, has a strong gaming culture and a high number of active gamers. This presents a significant opportunity for in-game advertisers to reach a large and engaged audience. Canada and Mexico also have growing gaming communities, providing additional opportunities for advertisers to target specific demographics.

Underlying macroeconomic factors: The growth of the in-game advertising market in NAFTA is also influenced by underlying macroeconomic factors. The region has a strong and stable economy, which allows for increased consumer spending on gaming and entertainment. As the gaming industry continues to expand, so does the potential for in-game advertising. Additionally, advancements in technology, such as improved graphics and virtual reality, are enhancing the gaming experience and creating new opportunities for advertisers to engage with gamers. In conclusion, the In-game Advertising market in NAFTA is experiencing significant growth and development due to shifting customer preferences, the rise of mobile gaming, the increasing popularity of esports, and underlying macroeconomic factors. This presents a valuable opportunity for advertisers to reach a large and engaged audience in a non-disruptive and immersive manner.

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.