In-Game Advertising: Prospects for 2023 and Beyond


01 February 2023

In-game advertising – the display of advertising within a video game – is one of the hot topics of digital advertising. Due to the increasing popularity of video games and the overall growth of the gaming industry, the market for in-game advertising is growing rapidly: according to the Allied Market Research data, it is projected to reach $17.6 billion by 2030, growing at a CAGR of 11% from 2022 to 2030.

What makes in-game ads so dope? Let’s find out with DecenterAds!

Reasons behind the growing popularity of in-game ads

Ads in games have become a valuable and effective advertising channel for businesses of all sizes. There are quite simple grounds for the in-game advertising demand, including:

  • A large and engaged audience that spends a significant amount of time playing games, making it an attractive target for advertisers.
  • Investments in the sector constantly contribute to the development of new and innovative advertising formats.
  • Immersive advertising experience that is less intrusive than other forms of advertising provides an immersive advertising experience.
  • Targeted advertising can lead to more effective advertising.
  • Measurable results, such as click-through rates and conversions, can help advertisers assess the effectiveness of their campaigns.

With all this, advertisers have a wealth of opportunities to reach their target audience and drive meaningful results from their advertising campaigns.

Top in-game advertising formats

In-game advertising has evolved to include a variety of different formats, each with its own unique benefits and challenges. 

For example, playable ads is a dynamic in-game advertising type that provides a low-risk way for players to experience a new product and can increase the likelihood of them downloading it. 

Rewarded ads, which provide players with in-game rewards or bonuses in exchange for watching a video, give the advertisers more impactful brand exposure. 

Offerwalls, which display some in-game benefits in exchange for completing certain tasks, can drive downloads and increase engagement with a new product, but can also cause players’ frustration if they feel that the offers are not relevant or valuable to them. 

Interstitial ads that appear between game levels or at other natural pauses in the gameplay provide advertisers with a high level of visibility and can be an effective way to capture player attention. However, they can also be disruptive to the gameplay and result in a negative player experience

Banners, which are displayed within the game, are less intrusive than other forms of in-game advertising and can provide a more subtle way for advertisers to reach players. Yet, they may also be less effective in capturing player attention and generating clicks.

In-game advertising prospects for 2023 and beyond

According to Anzu’s 2023 predictions, we’ll see new prospects for gaming and, respectively, in-game ads, as the future of metaverse experiences is becoming more prevalent this year with the rollout of 5G networks and the gaming-focused Gen Z generation. 5G networks will help bridge the gap between the physical and digital worlds, while 90% of Gen Z identify as gamers and see mobile video games as the new social norm, increasing the expectation for interactivity. The shift in consumer behavior during COVID, including the acceptance of virtual experiences like concerts and try-ons, has paved the way for more virtual spaces and interactive media, making gaming the leader in 3D environments. Gaming stops being niche; more and more it is taking the lead in the advertising industry

There are several major trends that every advertiser should take into account.

The rise of personalized and targeted advertising is playing a significant role in the current “App-ocalypse”, where users are increasingly looking for highly-relevant and personalized experiences. In-game advertising is no exception, with advertisers looking for ways to deliver personalized advertisements that are relevant to the player and their interests.

In-game ads are increasingly designed to match the immersion of the games themselves. This means that ads are becoming more interactive and engaging, with features like playable ads and rewarded video ads becoming more popular. This allows advertisers to create advertisements that are not only effective but also provide an enjoyable experience for the player.

Looking for ways to deliver advertisements that are seamless and contextually relevant to the players, advertisers make their ads more integrated into the game, with features like offerwalls and coupon ads providing players with incentives to engage with advertisements. It is helping to improve the player experience and drive higher engagement and conversions for advertisers.

Esports is becoming an important way for brands to reach and engage with audiences in the battle for the metaverse, providing advertisers with a unique and highly-engaged audience to target.

Despite the rise of new technologies and platforms, games will continue to be a dominant form of entertainment and advertising. In-game advertising is set to continue its growth trajectory, providing advertisers with a powerful and effective way to reach and engage with their target audience.

One of the easiest ways to reach and engage with the target audience through in-game ads is with the help of a DSP that provides access to a large pool of game publishers. This is a scalable and cost-effective way to boost revenue from game advertising.

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