In-Game Advertising to Continue Exponential Growth

  |  April 17, 2006   |  Comments

The market value of in-game advertising is expected to grow fivefold by 2010.

In-game advertising is expected to reach $732 million by 2010, according to "Video Games Are the Next Frontier for Advertisers," a DecisionNote report from Yankee Group.

The projected figure of $732 million is five times the current market value of the category. Ads placed in video games accounted for $56 million in spending in 2005, and $34 million the previous year.

A recent keynote address by in-game advertising firm Massive Inc. said spending in video games would near $2 billion by the end of the decade. A February report on digital ads placed in-game spending at a more conservative $432 million.

Growth in the consumer and video game industry is expected to continue. In the current calendar year, the number of games with in-game advertising will likely double. The report says approximately 200 titles with in-game advertising units will be released. Titles will be spread across all major video game consoles and the PC.

Currently, in-game advertising firms such as Massive, IGA Worldwide and Double Fusion create networks with video game publishers to sell inventory. However the report suggests that the console manufacturers including Sony and Microsoft, as well as game publishers like Electronic Arts, may bring in-game ad serving in-house in the future.

According to recent NPD Group figures there are approximately 100 million current-generation gaming devices in the U.S. market. While the 100 million installed-base is significant, overlaps exist. About 40 million U.S. households have one or more video game consoles. The next generation of consoles includes the Microsoft Xbox 360 that was released in November of last year; and the Sony PlayStation 3 and Nintendo Revolution, both of which are expected to launch in the fall.

The forecast projects ad spending based on current and historical estimates and the expected release dates of upcoming video game titles.

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ClickZ Live San Francisco Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!


Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Stats delivers stats headlines to your inbox twice a week. Subscribe today!




Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.



    • Copywriting & SEO Specialist
      Copywriting & SEO Specialist (HeBS Digital) - NEW YORKJOB DESCRIPTION     JOB TITLE:         ...
    • SEO Specialist
      SEO Specialist (NJM Insurance Group) - West TrentonNew Jersey Manufacturers Insurance Company is an industry leader among its peers and the largest...
    • Paid Search / Search Engine Marketing (SEM, PPC) Specialist
      Paid Search / Search Engine Marketing (SEM, PPC) Specialist (HeBS Digital) - New York  JOB TITLE:        ...