In-game Advertising Market By Advertisement Type (Static Ads, Dynamic Ads, Advergaming, Reward-based Advertising, Product Placement, Others), By Game Type (Action/Adventure Games, Role-playing Games, Simulation Games, Sports Games, Racing Games, Casual Games, Puzzle and Strategy Games, Multiplayer Online Battle Arena, First-person Shooter, Massively Multiplayer Online), By Revenue Model (Cost Per Mille, Cost Per Click, Cost Per Acquisition, Revenue Sharing Models, Programmatic Advertising Models) and By End-user (Game Developers, Game Publishers, Advertising Agencies, Brand Owners), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The In-game Advertising Market accounted for USD 9.45 Billion in 2024 and is expected to reach USD 31.6 Billion by 2035, growing at a CAGR of around 11.6% between 2025 and 2035. The in-game advertising industry is composed of blending advertising into video games so that brands can reach out to gamers in immersive and interactive games. The market comprises dynamic ads (time-sensitive), static ads (non-time-sensitive), and branded content, including product ads in games (in-game placements) and sponsored events.

With the rise of mobile, PC, and console gaming, as well as the development of technologies such as augmented or virtual reality marketing, in-game advertising has become a highly effective marketing technique. It enables deep targeting, high interactivity, and unobtrusive ad forms, making it an effective tool for addressing a variety of populations. Market growth is being driven by increasing game user numbers and advancements in ad technology.

Report Scope:

Market Dynamics     

Increasing popularity of mobile and online gaming, providing a large and engaged audience

With the popularity of mobile and computer games, the in-game advertising sector has grown dramatically. With an increasing number of gamers playing mobile games on smartphones and tablets, the gamer audience has expanded rapidly, generating enormous advertising opportunities. These games appeal to a wide range of groups, including young people and millennials who spend a lot of time gaming, providing a channel for marketers to reach out to potential customers.

In-game advertising, such as banner ads, video ads, and sponsored posts, can integrate marketing into the gaming experience without disrupting it. Advertisers can reach out to players in novel ways due to games' interactive nature, such as offering rewards for watching advertising. As social gaming and multiplayer online games have grown in popularity, advertisers may now reach a larger and more engaged worldwide audience, and in-game adverts are becoming effective tools in modern digital marketing.

Enhanced targeting capabilities using AI and machine learning to deliver personalized ads

AI and machine learning technology have transformed targeted advertising in the in-game advertising market. These technologies track player behavior, preferences, and in-game behaviors to deliver highly personalized adverts. AI will be able to detect patterns and create advertisements for specific user groups based on their gaming activity, boosting the relevance and efficacy of advertising campaigns. This means that firms can communicate directly with players using advertising that is highly relevant to their tastes and actions.

AI-based algorithms provide real-time, fine-grained ad delivery optimization by dynamically changing ad content based on player involvement, game progression, and environmental context. This adaptive targeting ensures that adverts are provided at the optimal time while only marginally disturbing the user experience. As a result, in-game ads become more intriguing and less intrusive, leading to better user experiences, higher conversion rates, and a more profitable in-game advertising environment for both developers and advertisers.

Concerns over intrusive ads disrupting the gaming experience and alienating players

In-game advertising is a valuable revenue source that has the potential to interrupt the gaming experience. Most players find intrusive adverts irritating and distracting. These interjections can disturb immersion, particularly when the advertisements are poorly timed or wholly irrelevant to the player, resulting in annoyance and a negative overall experience with the game.

The employment of game-damaging advertising methods may force players to abandon games and refuse to buy in-game items. However, if ads are viewed as invasive, gamers may decide that their experience is being exploited for profit rather than fun, and engagement will inevitably decline as a result. To ensure a great user experience and build player loyalty, game developers must find the sweet spot, incorporating advertisements in such a way that they enhance gameplay while minimizing their negative impact.

Growing adoption of immersive advertising formats like augmented reality (AR) and virtual reality (VR)

As more people select immersive digital platforms like augmented reality (AR) and virtual reality (VR), it creates new chances for advertising within games. With increasing player interest in AR and VR games, advertisers can create immersive brand experiences that blend naturally into game universes. This technology helps producers invent new advertisement styles that integrate better with games through virtual merchandising options and virtual display posts. This approach links digital campaigns to real-world experiences, letting advertisers build activities that enhance brand memory for customers.

Gaming now reaches all ages effectively, and the growing player base gives advertisers easy access to participants across different demographics who deeply engage with the content. The market analyzes player data to find better ways to show advertisements that deliver greater results to advertisers. Gaming and virtual reality unite to provide businesses with fresh methods to reach and make money from their consumers.

Potential for partnerships between game developers and advertisers to create branded content

There is an increasing possibility of collaborative relationships between game developers and advertisers to develop branded materials in the in-game advertising industry. Working together, the two sides can create and produce, jointly, some psychologically realistic and immersive content, which integrates perfectly with the game. This might involve in-game billboards, product placements, and co-organized special events populated with the advertisement's brand. Such collaborations provide an opportunity for advertisers to engage highly involved players and, at the same time, enrich the game world, thereby naturalizing the advertised content.

Branded content partnerships provide game developers with opportunities for additional revenues, sustaining semantic control of games. When properly implemented, branded content can enrich the player's experience, among other ways, with unique in-game content or game-related brand rewards. This reinforces the relationship between the brand and the gaming community and encourages the players to play the game more often. As the market for more cross-platform games and large-scale digital environments continues to expand, these collaborations offer the promise of long-term success for developers and advertisers alike.

Industry Experts Opinion    

"In-game advertising represents a dynamic intersection of gaming and marketing, offering brands an immersive way to engage with highly targeted audiences. As gaming continues to surge in popularity, the potential for in-game ads to deliver personalized, contextually relevant content is greater than ever."

-       Dr. Joost van Dreunen, Professor of Business at NYU and Co-Founder of SuperData Research.

"In-game advertising is evolving rapidly, with developers integrating sophisticated ad formats that enhance user experience rather than disrupt it. This shift not only increases the effectiveness of ads but also opens new revenue streams for game developers."

-       Brandon Ross, Media Analyst at LightShed Partners.

Segment Analysis  

Based on advertisement type, the in-game advertisement market is divided into Static Ads, Dynamic Ads, Advergaming, Reward-Based Advertisement, Product Placement, and Others. Static ads are also nonflexible and are fixed within the game world, in elements that populate the game world like billboards or loading screens. In contrast, dynamic ads are the agents of change and can be modified according to user information, background information, or external conditions, resulting in a more differentiated experience.

Advergaming is the overlaying of advertising into the game mechanics and materials that are custom-included in the game. The reward-based advertisement provides players with incentives such as in-game items or in-game currency as a reward for watching advertisements. Product placement involves seamlessly integrating branded products or services into the game storyline or environment.

Based on game type, the in-game advertisement market is divided into Action/Adventure Games, Role-playing Games, Simulation Games, Sports Games, Racing Games, Casual Games, Puzzle and Strategy Games, Multiplayer Online Battle Arena, First-person Shooter, Massively Multiplayer Online. Action/Adventure games alone make up most of today's in-game advertisement market. Players spend long periods in highly interactive virtual landscapes when they enjoy these types of games.

Games with these settings naturally take advertising and help players see brands through visual elements. Games in action-adventure categories attract many players, which ensures that marketing content reaches a substantially attentive audience. The adaptable visual design tools allow product placement to blend smoothly into both the game world and the player experience. Games in the action/adventure genre generate profitable opportunities for brands that want to reach video game players.

Regional Analysis    

The North American in-game advertising market is being pushed by the increased adoption of digital gaming and innovative advertising technology. High user involvement in games on mobile, console, and PC platforms creates a profitable opportunity for tailored advertising. Brands are utilizing dynamic and interactive ad formats that easily blend with games, improving the user experience while increasing visibility.

The widespread presence of esports and live-streamed games expands the reach of in-game marketing, allowing for real-time audience involvement. Furthermore, the increasing use of AI-powered ad placements improves targeting precision, resulting in a higher return on investment for advertisers. The growing trend of cross-platform gaming allows businesses to contact customers across many devices, hence expanding their advertising footprint.

The Asia Pacific in-game advertising market is growing owing to the region's big and active gaming population. The prevalence of mobile gaming creates a crucial route for ad placements, with businesses engaging users through tailored and context-aware adverts. More engaging and immersive ad formats are becoming possible as gaming technology advances and 5G penetration increases.

The popularity of esports and live gaming events increases the impact of in-game advertising, allowing marketers to connect with highly engaged audiences. The growing influence of local gaming communities and cultural trends is resulting in more region-specific advertising methods. Partnerships with gaming platforms and influencers are becoming increasingly vital for reaching a large and diverse gaming audience.

Competitive Landscape      

One of the markets that is most competitive is the in-game advertising market, where some of the industry-leading companies are trying to achieve optimum engagement through ad format innovation and technology integrations. Companies, such as Anzu, AdInMo, and Bidstack, are market leaders by providing dynamically and programmatically served advertisements that have no problem adapting to the gaming media. As augmented reality (AR) and virtual reality (VR) technologies become more widely used, competitors, among others, are using these technologies to design engaging ad experiences that increase market competition.

Novel entrants such as Frameplay and Adverty are finding their footing by delivering natural, contextually appropriate advertisements for the benefit of developers and advertisers. Partnerships between gaming companies and ad platforms are increasingly common, creating new potential for tailored marketing. However, the market's growth potential has attracted corporations such as Microsoft and Google, which are expanding in-game advertising competition levels by constantly combating innovation and pushing the bounds of appropriate in-game advertising methods.

In-game Advertising Market, Company Shares Analysis, 2024

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Recent Developments

In October 2024, Discord expanded its advertising offerings by introducing Video Quests, incentivizing users to watch video ads in exchange for rewards such as in-game items and custom profiles.

In November 2024, Roblox appointed former Roku executive Louqman Parampath to lead its advertising and commerce product development, aiming to diversify revenue streams beyond in-game currency purchases

Report Coverage:    

By Advertisement Type

• Static Ads
• Dynamic Ads
• Advergaming
• Reward-based Advertising
• Product Placement
• Others

By Game Type

• Action/Adventure Games
• Role-playing Games (RPGs)
• Simulation Games
• Sports Games
• Racing Games
• Casual Games
• Puzzle and Strategy Games
• Multiplayer Online Battle Arena (MOBA)
• First-person Shooter (FPS)
• Massively Multiplayer Online (MMO)

By Revenue Model

• Cost Per Mille (CPM)
• Cost Per Click (CPC)
• Cost Per Acquisition (CPA)
• Revenue Sharing Models
• Programmatic Advertising Models

By End-user

• Game Developers
• Game Publishers
• Advertising Agencies
• Brand Owners

By Region

North America

• The U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Anzu
• Bidstack
• Frameplay
• Adverty
• AdInMo
• AdMaven
• Verve Group
• InMobi
• AppLovin
• AdMob
• Liftoff
• Venatus
• Playwire
• Chartboost
• Unity Ads

Frequently Asked Questions (FAQs)