A groundbreaking study titled “Changing the Game: How Games Advertising Powers Performance” was released during IAB PlayFronts and examines the effects of game-related advertising amid the gaming industry’s explosive growth. The pioneering research by media agencies and brands measures the efficacy, reach, and success of gaming advertising, illuminating why it is such an important part of the marketing mix.
For those who use it, gaming advertising is now a crucial and ever-expanding component of the marketing mix. Remarkably, 40% of advertisers intend to raise their game advertising budgets in the upcoming year, and 86% of respondents concur that the industry is becoming more and more important to their businesses.
Spending increases on advertising coincide with the rise in popularity and significance of gaming in the United States. 213 million people play video games in the US, according to Entertainment Software America (ESA), and eMarketer predicts that ad spending on games will increase from $8.53 billion in 2024 to $11.49 billion by 2027.
Games advertising has developed into a dependable channel for providing premium, high-caliber inventory as it continues to grow. Notably, 86% of advertisers polled concur that it is brand safe, securing its ranking as the second-best channel for brand safety. Furthermore, 85% of respondents express confidence in their capacity to quantify game advertising.
Even though 79% of advertisers find buying game advertising to be reasonably easy, it still requires more planning and purchasing than other digital media channels. Expert buyers and planners stress that more work is necessary to completely capitalize on the benefits of game advertising. Due to the diversity of the gaming industry and the requirement for custom work, this involves researching gaming audiences to learn about their preferences and customizing ad formats and creatives, which can be more complex than in other media channels.
These findings make it clear that gaming advertising is an effective means of reaching the right customers in their preferred setting. Its effectiveness in getting relevant messaging in front of valuable but difficult-to-reach audiences is attested to by an impressive 90% of advertisers. Further, 85% of advertisers recognize game advertising as a premium, high-quality platform for promoting their brands. It presents a new and creative way to market by incorporating immersive ad placements into user experiences.
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According to 78% of advertisers, games advertising is excellent or good at raising awareness, 76% at encouraging research and consideration, and 65% at encouraging purchase. This indicates that game advertising meets both brand and performance marketing goals.
To help advertisers fully utilize the potential of this channel, IAB has also published best practices and guidelines for gaming advertising. To guarantee courteous and successful advertising across a range of gaming platforms, the initiative introduces crucial guidelines regarding creative in-game advertising. To standardize procedures and make advertisements interesting rather than disruptive, the guidelines address the problem of intrusive advertising by placing a high priority on appropriate calls-to-action, transparent disclosures, and adherence to quality assurance procedures. To achieve higher standards and an ideal balance between advertising goals and user satisfaction, the document establishes guidelines for various ad formats and encourages collaboration between gaming and advertising professionals.
Jack Koch, Senior Vice President, Research & Insights, IAB said,
“This is the first large-scale quantitative analysis of brands and agencies with experience purchasing games advertising. The study found that advertisers view games advertising as a measurable, brand safe medium that is effective across the entire consumer journey. Marketers can no longer afford to ignore this medium if they want to reach the more than 200 million U.S. consumers that play video games.”
Zoe Soon, Vice President, Experience Center, IAB added,
“Our Creative Guidelines and Best Practices in Advertising in Gaming aims to help preserve the Player First ethos and help brands get it right when activating in games. From interactive overlays to rich media experiences, we’re providing guidelines and identifying best practices to ensure ads enhance rather than disrupt gaming. By encouraging collaboration within the gaming and advertising communities, we’re building a future where ads not only meet brand goals but also contribute to a gaming journey that everyone can enjoy.”
