The WARC Podcast Gaming – Advertising's untapped opportunity
Aug 20, 2024
In this engaging discussion, Alex Brownsell, Head of Content at WARC, and Celeste Huang, a data journalist at WARC, dive into the untapped potential of in-game advertising. They explore the surprising $6.7 billion ad spend in gaming and the complexities of targeting diverse audiences across platforms. With insights into regional gaming habits and the contrasting preference for dynamic formats, they highlight the need for improved measurement tools to drive greater brand investment in this vibrant ecosystem.
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Big Audience, Small Ad Spend
- Gaming's audience and industry size far outstrip movies and music, yet in-game ad spend remains modest.
- The US 2024 forecast of $6.7bn in traditional in-game ads is small versus a $200bn+ digital market.
Two Distinct In-Game Formats
- Dentsu splits gaming ads into programmatic mobile reward formats and dynamic in-game integrations.
- Dynamic integrations feel native and excite big brands but are harder to measure and sell.
Publishers Should Build Better Ad Products
- Games publishers should diversify revenue away from in-app purchases by improving ad monetization.
- Invest in richer ad formats and third-party measurement to attract bigger brand budgets.