In-game Advertising - Philippines

Philippines

Highlights

In the Philippines, revenue in the In-game Advertising market market is projected to reach US$109.10m in 2024.
Revenue in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 6.90%, which will result in a projected market volume of US$152.30m by 2029.
The average revenue per user (ARPU) in the Philippines is anticipated to amount to US$2.76.
In a global context, the majority of revenue will be generated China, with figures expected to reach US$46.61bn in 2024.
In-game advertising in the Philippines is rapidly evolving, reflecting the country's growing gaming culture and increasing importance of digital engagement among younger audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in Philippines is experiencing significant growth due to the increasing popularity of online gaming and the growing number of smartphone users in the country.

Customer preferences: Customers in Philippines are increasingly turning to online gaming as a form of entertainment, with a particular focus on mobile gaming. This shift in preferences can be attributed to the convenience and accessibility of mobile gaming, as well as the increasing quality and variety of games available on smartphones. As a result, advertisers are recognizing the potential of reaching a large and engaged audience through in-game advertising.

Trends in the market: One of the key trends in the In-game Advertising market in Philippines is the integration of native advertising within games. Native ads seamlessly blend into the gaming experience, appearing as in-game objects or characters, and are designed to be non-disruptive to the gameplay. This form of advertising is becoming increasingly popular as it allows advertisers to reach gamers in a more organic and immersive way, resulting in higher levels of engagement and brand recall. Another trend in the market is the rise of programmatic in-game advertising. Programmatic advertising allows advertisers to target specific audiences based on their demographics, interests, and gaming behavior. This targeted approach ensures that ads are delivered to the right audience at the right time, maximizing the effectiveness of the advertising campaign. With the increasing adoption of programmatic advertising technology in Philippines, advertisers are able to optimize their in-game advertising strategies and achieve better ROI.

Local special circumstances: The In-game Advertising market in Philippines is also influenced by the local gaming culture. Philippines has a strong gaming community, with a high percentage of the population being active gamers. This gaming culture creates a favorable environment for in-game advertising, as gamers are more receptive to advertisements that are integrated into their gaming experience. Additionally, the prevalence of free-to-play games in Philippines further enhances the potential for in-game advertising, as gamers are more willing to engage with ads in exchange for free or discounted content.

Underlying macroeconomic factors: The growth of the In-game Advertising market in Philippines is also driven by the increasing smartphone penetration in the country. With more Filipinos owning smartphones, there is a larger audience for in-game advertising. Furthermore, the improving internet infrastructure in Philippines has made online gaming more accessible to a wider population, further fueling the growth of the In-game Advertising market. In conclusion, the In-game Advertising market in Philippines is experiencing significant growth due to the increasing popularity of online gaming, the rise of mobile gaming, and the growing number of smartphone users in the country. Advertisers are recognizing the potential of reaching a large and engaged audience through in-game advertising, leading to the integration of native advertising and the adoption of programmatic advertising technology. The local gaming culture and the improving macroeconomic factors in Philippines further contribute to the growth of the In-game Advertising market.

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.