Posted by Brand Safety Institute • May 15, 2023 9:00:00 AM
There are still misconceptions surrounding the effectiveness and availability of game advertising according to a study by the Interactive Advertising Bureau (IAB). While gaming accounts for less than 5% of ad spending, based on over 40 brands interviewed, the gaming related ad industry is quickly closing in on being worth $5 billion. The IAB study revealed that what is driving this gap are five main misconceptions about game advertising, including the idea that it’s only for a niche audience and that it’s difficult to measure the effectiveness of game ads. The study also found that gamers are not just teenagers, and game advertising is not just for reaching gamers. In fact, gamers are a highly diverse group of people who span a range of ages, genders, and interests. Jack Koch, senior vice president for research & insights at IAB said, “high-quality audiences at serious scale, brand safety, easy buying, and defensible measurement are all finally in place. As the misperceptions dissipate, we expect spending on in-game advertising will begin to catch up to the opportunity.” Additionally, new technologies like advergames and in-game sponsored content allow for more precise targeting and easier measurement of ad effectiveness.
Looking towards the future of game advertising, experts predict that it will become more personalized and interactive. In an opinion piece for The Drum earlier this year, Michael Reidy, senior vice president of digital ad sales at NBCUniversal Media said, “In 2022, marketers trod carefully as the industry raced to operationalize stronger measurement and brand safety solutions for in-game advertising. But that is quickly changing. The combination of an increasingly broad gaming audience and tech stack maturity will make 2023 a breakout year in terms of media spend devoted to the gaming space.”
So what types of game advertising are available to brands? AdExchanger breaks down the different types, including pre-roll ads, in-game ads, and programmatic ads. Each type has its own advantages and disadvantages, and the best approach will depend on the brand’s goals and the game’s audience. However, in-game and game related advertising is an exciting and evolving industry that offers a unique opportunity for brands to reach a diverse and engaged audience. While misconceptions are sometimes hard to get past, thankfully, studies and expert experience suggest that game advertising will continue to grow and become more personalized and interactive. Brands looking to explore game advertising should consider the different types available and work with experts in the field to develop a strategy that aligns with their goals.