Report: In-Game Ad Spend to Exceed $1 Billion In Five Years

  |  May 27, 2009   |  Comments

Market conditions will support accelerated growth of in-game advertising over the next several years.

In a down economy, marketers are reluctant to test, or even continue with, emerging media platforms. A forecast released by analyst firm Screen Digest and media firm GroupM suggests in-game advertising has fallen victim to recessionary media thinking, though the long range outlook for the channel remains strong.

In 2008 advertisers spent roughly $55 million on dynamic in-game advertising in 2008, according to the report. Though it doesn't disclose exact figures, Screen Digest describes a short-term softness in ad spending on emerging formats but says that softness will give way to a sharp increase in spending -- to $1.2 billion by 2014. That's a more than 20-fold increase in spending over five years.

The growth will be driven in part by a dramatic increase in the addressable audience of gamers with Internet-connected consoles and broadband-enabled PCs. Connected consoles, including PlayStation 3, Microsoft Xbox 360, and Nintendo Wii, numbered 40 million at the end of 2008 and will likely reach 90 million in 2011, according to Screen Digest. The researcher also predicts the connected PC gamer market will grow from 400 million early in 2009 to 500 million in 2012.

Currently the Wii does not accept dynamic advertising. "If at some point Nintendo decides to open its platform, it will be a major boost because of the...demographics. It will reach a more mainstream audience," said Screen Digest Senior Analyst Vincent Letang, who added, "We believe it will happen."

In-game advertising is far from new, but it's still treated as an experimental item in many budgets. It is often compared to mobile, and grouped into the emerging media category.

"While both are emerging media, [in-game is] different from the mobile advertising market. While very small, it's very structured. You already have three companies aggregating a worldwide inventory," Vincent Letang, senior analyst at Screen Digest told ClickZ. Letang added, "It's a global media. The popular games are played all over the planet."

ClickZ Live New York Want to learn more? Join us at ClickZ Live New York 2015
[ALERT] Super Saver Rates Expire January 30. With over 15 years of experience delivering industry leading events, ClickZ Live brings together over 50 expert speakers to deliver an action-packed, educationally-focused agenda covering all aspects of digital marketing. Quick! - Register today to secure your place at the best rate.

ABOUT THE AUTHOR

Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

Jobs

    • E-Commerce Marketing Associate
      E-Commerce Marketing Associate (OmniVista Health) - BaltimoreOmniVista Health is looking to add an E-Commerce Marketing Associate to our expanding...
    • Front End Web Developer
      Front End Web Developer (Agora Financial) - BaltimoreAgora Financial, an independent financial publisher, has an immediate opening for a Front-End...
    • Senior Outside Sales
      Senior Outside Sales (RioSeo) - San Diego~~RioSEO is the leading provider of Local Search technology to multi-store retailers and brands. Our software...