With gaming being a notable part of everyday lives and modern society, it offers a significant opportunity for brands to offer compelling and engaging advertising, having a meaningful impact on potential consumers. Here\u2019s why in-game advertising is one of today\u2019s biggest marketing trends.<\/p>\n
In-game advertising defined<\/h2>\n
In-game advertising (IGA), as the name suggests, involves the use of ads or the promotion of brands at any point of a game<\/a> (this can be pre-, mid-, or post-game). In other words, it is a type of digital advertising that displays image, video, or audio ads inside video games themselves. Game developers often sell ad space in video games through which brands can promote themselves in a more integrated, seamless game environment. This provides a more engaged experience<\/a> for consumers instead of typical in-app advertisements, pop-ups, or banners commonly seen in mobile games. In essence, IGA is programmatic advertising<\/a> for video games.<\/p>\n Investing in IGA can help brands achieve more visibility, and is an effective way to differentiate their brand by using advertising channels where competition may still be low. IGA\u2019s flexibility and adaptability let brands optimize their campaigns in real-time \u2013 making it easy to create custom-made advertising messages and campaigns without disrupting the flow and gameplay of consumers.<\/p>\n In-game advertising is also a great way to collect user data. Marketers can refine and improve their advertising messages and strategies by gathering specific customer metrics and information like time spent playing video games, the gamer\u2019s profile, location information, and more.<\/p>\n Typically, IGA involves certain stakeholders and key market players. These include (but are not limited to): demand-side platforms (DSP) or sell-side platforms (SSP), data platforms (like Google, Amazon, and Facebook), game streaming broadcasters (like Twitch, Facebook Gaming, and YouTube Gaming), video game creators and publishers, and other digital content publishers like (like YouTube or Spotify).<\/p>\n In-game advertising has been around for decades, dating back to 1978 when the text adventure video game Adventureland promoted its new game Pirate Adventure on the microcomputer. IGA has evolved since then, transforming into the various forms and types of in game ads used today. Here are some of the main forms of in-game advertising:<\/p>\n Static in-game advertising<\/a> involves placing ads on stationary elements, like a virtual billboard or poster. These are usually strategically placed to attract a player\u2019s attention without disrupting gameplay. One key feature of static in-game ads is that once it has been added to the game, it cannot be changed. Static ads are most commonly used in sports, racing, and open-world games.<\/p>\n Interstitial ads are interactive ads that cover the entire screen, often\u00a0 during the game\u2019s natural pauses (like a break in between levels). The purpose of interstitial ads is to ensure they interrupt a user\u2019s gaming experience as little as possible.<\/p>\n Native banners<\/a> are embedded and added as part of the game\u2019s content and blend seamlessly into the background for an unobtrusive ad experience.<\/p>\n Contextual ads<\/a> are placed in environments where the site content is similar and more relevant to the audience. These ads make use of a set of topics and keywords related to their digital media source, which then use algorithms to match the ad with relevant content.<\/p>\n Rewarded video ads are meant to reward users for watching a full-screen ad (these are usually around 15-30 seconds long). This incentivizes users with bonuses like in-game currency, extra lives, or bonus content. Developers saw user retention increase by 62%<\/a> after introducing rewarded video ads and 71% of video game players prefer in-game video ads over in-app purchases.<\/p>\n Playable ads are interactive video ads that give users a glimpse of what a game is before they decide to download it. By implementing playable ads, advertisers can expect lower uninstall rates and increased user retention.<\/p>\n Advergaming<\/a> (sometimes referred to as \u201cgamevertising\u201d or advertising in games) refers to games specifically designed to promote a brand. It involves incorporating advertising elements directly into the game such as the integration of brand promotions, product placements, or interactive advertisements within the gameplay.<\/p>\n These games often involve collaboration between game developers and the advertisers through which the advertiser\u2019s brand is integrated into the game as a form of sponsorship. Some of these elements usually include sponsored in-game events, challenges or levels, customization options, or additional game modes that showcase the advertiser\u2019s brand or content.<\/p>\n Product placements (putting products and brands directly into video games where players will see or \u201cuse\u201d them) and sponsored game content (integration of a brand or product into game content)fall under this category as well.<\/p>\n A few examples of these are:<\/p>\n In-game advertising is proven to have various benefits and advantages in contrast to traditional marketing. IGAs are generally perceived as more organic compared to the presence of pop-up and banner ads. Having interactive components also leads to both brand recognition and consumer participation. Geo-targeting, real-time ad moderation, and rapid rollout of ad creatives<\/a> are other benefits of IGAs.<\/p>\n In addition, brands can increase brand awareness and engagement<\/a> by showing ads to users in a much more natural, seamless way without disrupting the user\u2019s gaming experience. A study commissioned by Broadband provider TalkTalk<\/a> shows that in-game advertising delivered an uplift in purchase intent by as much as 12%.<\/p>\n In-game advertising also results in longer attention spans for gamers. In-game ads are shown to result in an average gamer attention span of 29 minutes vs. the 17.5 minutes per thousand impressions in online advertising. They also result in a higher average dwell time of 13%, compared to the 1.6% for online advertising, and a greater interest rate. In-game ads were viewed by up to 96% of study participants and over eight in ten (84%) felt that the ads were suitable for the in-game environment.<\/p>\n Another benefit to utilizing in-game advertising is being able to tap into the huge target consumers and target certain audiences that other brands may not necessarily think of promoting to. The regular gamer has diverse typologies and segments<\/a> that brands can access and engage with:<\/p>\n Considering the ever-changing world of in-game advertising, as well as the industry\u2019s increasing regard and utilization of it, it makes sense that IGA also comes with its own set of unique challenges and barriers<\/a>.<\/p>\n One common challenge is user attitude when seeing and encountering ads during gameplay. Players tend to become frustrated and upset if the ads disrupt enjoyment or flow. Such disruption could lead to lower user retention and lesser engagement, defeating the purpose of the in-game ad.<\/p>\n Another challenge is the constant need to engage and stimulate gamers\u2019 minds and attention; gamers are even more susceptible to ad fatigue, often getting bored very quickly by seeing the same ads repeatedly.<\/p>\nForms of IGA<\/h2>\n
Static in-game ads<\/h3>\n
Dynamic in-game ads<\/h3>\n
Native banners<\/h3>\n
Contextual ads<\/h3>\n
Rewarded video ads<\/h3>\n
Playable ads<\/h3>\n
Advergaming \/ gamevertising<\/h3>\n
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Benefits of IGA vs. traditional marketing<\/h2>\n
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Challenges of in-game advertising<\/h2>\n