Over the past few years, in-game advertising services have become increasingly popular in the gaming business. It’s a fresh approach for game makers to make money, and for advertisers, it’s a chance to connect with a highly receptive demographic. However, what are in-game advertising services, and how do they function? In-game advertising service is the ideal combination of fun and promotion, and we’ll go over all the details in this blog.
In-Game Advertising Services: Overview
Advertisers can use in-game advertising services, which provide a platform for integrating advertisements into games. These commercials can range from simple banners to full-fledged videos that play during wait times or in-game breaks.
They fit in nicely with the categories of smartphone games, console games, and PC games. With a CAGR of 11% from 2022 to 2030, the global in-game advertising market is expected to expand from its $6.8 billion value to $17.6 billion.
Advertising within video games is not a new idea; the earliest instances can be traced all the way back to the 1980s. The growth of smartphone gaming, however, was the catalyst for the widespread adoption of in-game advertising. With smartphone games, both game creators and advertisers gained access to a previously untapped demographic.
How do In-Game Advertising Services Work?
In-game advertising services are effective because they skillfully blend commercials into video games without interfering with the experience. Static banner ads, pre-roll and mid-roll video advertisements, sponsored content, and product placements are just some of the forms of advertising that can be implemented within a video game.
Static Banner Ads
The most basic type of in-game advertisement is static banners. Typically, these advertisements are displayed in the game’s margins, such as on a billboard or poster in the background of a scene. These advertisements are typically not disruptive to the playing experience.
Pre-Roll and Mid-Roll Video Ads
Ads that play before or in the middle of web videos are called “pre-roll” and “mid-roll,” respectively. Ads like these often appear during gameplay breaks like loading screens or between stages.
These ad campaigns are more likely to get the player’s attention and convey the intended message than banner advertisements, despite their intrusive nature.
When a company pays to have its brand’s goods or services included in a video game, this is known as “sponsored content.” For example, a car company might pay for its cars to be shown in a prominent way in a racing game, or a soft drink company might pay for its name to be shown in a prominent way in a sports game.
In-game advertisements can also take the shape of “product placements,” which insert a real-world product or brand into a virtual one. Putting a branded item or character who uses the product into the game universe is one example of this.
In-game advertising services use a wide range of targeting methods to deliver relevant advertisements to players at the optimal moment during gameplay. Demographic targeting, geotargeting, and even in-game actions all fall under this category.
An advertiser may choose to show advertisements only to users in a specific country, or they may focus on users who have previously purchased items within the app.
Contextual targeting can also be used by in-game advertising services to display advertisements that are pertinent to the game being played, such as showing ads for energy drinks during a racing game.
Advantages of In-Game Advertising Services
For Game Developers
- New revenue stream
When combined with in-app purchases and premium subscriptions, in-game advertising services offer game developers a supplementary income stream. This can help developers, particularly independent ones who may lack the means to launch elaborate advertising campaigns, make more money from their games.
- Lower costs
Developers can save money on advertising costs by teaming up with an in-game advertising service and taking advantage of the service’s advertising network to spread the word about their games. Statista predicts that by 2025, in-game revenue will have reached over USD $74 million.
- Targeted advertising
Targeted advertising options are available through in-game advertising platforms, allowing game creators to reach their ideal demographics. Developers can use this to boost participation and increase conversion rates.
- High engagement
Regular gamers put in a lot of time each week playing their preferred games. Because of their increased propensity to pay attention to and interact with advertisements, gamers are a highly coveted demographic for marketers.
- Brand awareness
With in-game ads, companies can reach a highly engaged and attentive audience and raise their profile in the process. For brands aiming to reach a younger demographic that is more likely to spend time playing games, this strategy can be very successful.
Compared to more conventional forms of advertising, the cost per impression on an in-game advertising service’s network is much cheaper, allowing advertisers to reach more people for the same budget.
We are expecting even more exciting possibilities for in-game advertising services to push the boundaries of gaming and marketing even further as the gaming industry continues to grow and evolve.