Beyond Niche: Brand Safety in the Gaming Space

There are roughly 3.3 billion gamers worldwide. This staggering figure sees everything from the intense battles of Call of Duty to the puzzle-solving of Wordle. Video games captivate audiences of all demographics, across all regions and age groups. According to Comscore’s 2024 State of Gaming Report, 82% of American gamers made in-game purchases in freemium titles last year, highlighting the lucrative nature of in-game advertising. The report also underscores the massive engagement within the gaming community, with 62% of adults over 18 actively gaming, and millennials making up nearly half of this demographic. With gamers spending 45 billion hours on gaming sites and apps, and esports growing in popularity, the stakes for maintaining brand safety are higher than ever. The younger generations are particularly engaged, with 86% of Gen Z and 80% of millennials watching esports, and significant portions actively engaging with esports content.

In this dynamic, i.e. volatile, environment - gaming companies are making strategic changes to adapt to the shifting landscape. Marvelous, a Japanese game company, recently announced structural changes within its subsidiaries, Marvelous USA and Xseed Games. As these companies navigate their new roles—with Xseed focusing on third-party titles and Marvelous USA supporting both its parent company’s games and its arcade business unit—the need for brand safety remains paramount. As gaming companies expand their reach and diversify their offerings, they must also ensure that their advertising partners and content ecosystems are aligned with their brand values.

Despite this booming popularity and the industry’s projected $300 billion in revenue by 2028, the gaming landscape is far from stable. Over the past 18 months, the industry has faced significant challenges, with over 20,000 jobs lost and numerous studios shuttering their doors. Venture capital investments have also taken a steep nosedive, plummeting from a towering $14.6 billion in 2022 to a shocking $4.1 billion in 2023. As the industry grapples with these challenges, brand safety within gaming environments becomes increasingly critical.

In an industry where consumer engagement is high and the market is rapidly shifting, brands are treading carefully to protect their reputation – by finding the right associations to gaming opportunities, while recognizing a good deal of the opportunities live in a “livestream” environment. This involves not only choosing the right platforms for advertising but also ensuring that these platforms adhere to strict brand safety protocols. As the gaming industry continues to evolve, so too must the strategies for maintaining brand safety, ensuring that even in an unstable landscape, brands can connect with gamers in a way that is both impactful and secure.