In-Game Advertising Market Size to grow by USD 3.54 billion | Technavio

According to the research report "In-Game Advertising - Forecast and Analysis Report 2020-2025", the market will witness a YOY growth rate of 9.34% in 2021 at a CAGR of 16% during the forecast period. The report is segmented by Platform (Mobiles, Computing Device and Consoles), and geography (North America, Europe, APAC, South America, and MEA).
APAC is the largest market for in-game advertising. Factors such as the rise in the number of gamers and partnerships among advertisers and video game companies are prominently driving the market growth. In addition, countries such as China, Japan, Thailand, Indonesia, and Vietnam are further driving the market growth with an increase in penetration of internet connections along with rising smartphones users.

Vendor Insights

The global in-game advertising market is concentrated and the vendors are deploying different strategies such as extensively investing in joint ventures and acquisitions for capturing major shares and expanding their presence globally to compete in the market.
The growing competition in the market is compelling vendors to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. Various other players in the market are opting for M&A ad strategic alliances to acquire additional market share and enhance their market reach and customer base.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:

Alphabet Inc.
Anzu Virtual Reality Ltd.
Blizzard Entertainment Inc.
Electronic Arts Inc.
ironSource Ltd.
MediaSpike Inc.
Motive Interactive Inc.
Playwire LLC
RapidFire Inc.

Geographical Market Analysis APAC will provide maximum growth opportunities in the in-game advertising market during the forecast period. According to our research report, the region will contribute 34% of the global market growth and is expected to dominate the market through 2025. APAC will generate growth across all the years of the forecast period between 2020 and 2025.
The increasing penetration of broadband, as well as the rising use of smartphones, will facilitate the in-game advertising market growth in APAC over the forecast period. China and Japan are the key markets for in-game advertising in APAC. Market growth in this region will be faster than the growth of the market in other regions. The smartphone penetration is steadily rising in these regions which were recorded to be 60%-65% in 2019, resulting in boosting online gaming through smartphones and mobiles.

Key Segment Analysis

Mobile gaming is one of the prominent sections of the global gaming market for the past few years, with 45%-50% smartphones penetration taking place across the globe in 2020.

The wide availability of low-cost and large-screen smartphones that provide high-resolution displays gives a good gaming experience to its users, encouraging people to opt for mobile gaming. Also, mobile-based gaming applications are constantly influencing online stores than any other application. Thus, the advertising enterprises are encouraged to provide in-game advertising such as reward videos, banners, native ads, and interstitial advertising to stay up in the game and offer a competitive advantage over other market players.

Key Market Drivers & Challenges:

The increasing number of gamers and rise in partnerships between video game companies and advertisers is one of the key drivers for the global in-game advertising market growth. Games such as Apex Legends and Fortnite are boosting the gaming industry with free-to-play online availability. Moreover, the industry is estimated to elevate more than $300, simultaneously increasing the number of gamers to cross 2.4 billion users around the world by 2025. Thus, the advertisers are encouraged to invest more in in-game advertising which will enable them to reach a larger audience and fuel up the market growth during the forecast period.

The rise in the use of advertising blocking solutions is one of the major challenges to the in-game advertising market share growth. The in-game advertising is considered as interrupting mediums occurring before the game starts and in between the game resulting in affecting the user's experience and increasing frustrations, as most of the advertisements are irrelevant and do not have any value to the user. Thus, the users (gamers) are forced to adopt advertisement blocking solutions which are expected to hinder the in-game advertising market growth during the forecast period.


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