On 1 August, WARC Media released its latest Global Ad Trends report, ‘Gaming: Advertising’s untapped opportunity’. In this report, they reveal that the worldwide games market is worth $183.9 billion and that 2 in 5 people globally are active gamers. Despite this, in-game advertising remains low.
According to WARC Media, the share of advertisers planning to increase their spend on in-game advertising has decreased from 72% to 52% since 2021. Moreover, US advertisers are expected to spend $6.7bn — only 3.7% of the total US digital ad spend — on in-game ads.
Alex Brownsell, Head of WARC Media, commented on this in a press release: ‘Gaming is huge, both in audience and cultural impact, and its highly complex ecosystem spans devices and platforms defying conventional definitions of a channel. Gaming has long been heralded as a vital emerging opportunity for brands, particularly those wanting to reach younger audiences. However, in-game advertising spend remains low. This may soon change, with game publishers focused on improving ad monetisation. But evidence is needed to make the case for gaming as an advertising medium.’
In their report, WARC Media shared the benefits of in-gaming advertising, revealing that 90% of advertisers view gaming as ‘a brand-safe channel’. Gaming environments also generate higher attention rates since gamers are unlikely to multitask while playing.
Considering that gaming is an ‘ecosystem rather than a singular channel’, brands can choose to reach audiences via various touchpoints, including Twitch, Discord, and e-sports sponsorship. WARC Media further revealed that gaming companies and agencies are working to develop ad capabilities and assist with creative requirements to boost ad revenue.
Featured image: WARC Media
