The Interactive Advertising Bureau (IAB) unveils a powerful report, “Changing the Game,” on the opening day of its annual PlayFronts marketplace. This report confidently asserts game advertising as a top growth area for marketers.
An overwhelming 86% of marketers agree that in-game advertising is brand-safe, with 40% actively planning to increase their investment in this thriving space. Consider the numbers: over 212 million gamers in the US alone, and ad spending in games is projected to surge from $8.53 billion in 2024 to a staggering $11.49 billion by 2027.
The report positions games as a powerhouse for generating conversions and purchasing power, ranking second only to social media. Games even outperform on click-through rates, with a resounding 67% of marketers praising its effectiveness (compared to the industry average of 65%).
The Rise of Games Advertising: An Unstoppable Force
The surging popularity of video games, particularly among younger demographics, has propelled games advertising to new heights. Recognizing this undeniable growth, 86% of marketers acknowledge the increasing importance of game advertising for their companies. The IAB report empowers marketers by demystifying this space and highlighting the numerous benefits of video game ads.
Investment Strategies: Games Take Center Stage
While social media remains the leader in terms of planned budget increases (47%), games advertising is tied with digital video (40%) for a significant upswing. Notably, only 10% of marketers plan to decrease their game advertising spend, while a stable 50% intend to maintain current levels. This stability contrasts with digital video and social marketing, where 7% plan to decrease spending.
In-game advertising offers a diverse range of formats, including branded worlds, in-game rewards, and sponsored content. This versatility caters to a variety of marketing goals.
Measurable Success: Games Advertising Delivers
The report emphasizes the highly measurable nature of game advertising. A confident 85% of respondents expressed trust in their ability to measure the effectiveness of their campaigns. Additionally, 68% utilize the same metrics for game advertising as they do for other channels, solidifying its comparability and ease of integration. Ad engagement reigns supreme as the most popular metric (43%), followed closely by click-through rates (41%), conversions/sales (41%), and brand lift surveys (40%).
Games Advertising: From Experiment to Mainstream
“Changing the Game” reveals a significant shift in perception. Games advertising is no longer viewed as an experiment or a mere gimmick. A substantial 35% of marketers now dedicate specific budgets to this powerful channel, moving beyond research and development allocations (only 9%). The report further illustrates the diversified funding sources, with general media budgets (33%) and device-specific budgets (23%) playing significant roles. Notably, 78% of advertisers leverage game advertising consistently throughout the year, demonstrating a commitment beyond one-off activations.
The IAB, in collaboration with Advertising Perceptions, surveyed 300 brand and agency marketing leaders to create this insightful report. It delves into critical aspects such as how game advertising compares to other media, investment levels, and strategies for effective participation in this dynamic space.
In essence, “Changing the Game” serves as a clarion call for marketers. Games advertising has arrived as a dominant force, offering unparalleled measurability, diverse formats, and a highly engaged audience. The time to embrace this growth engine is now.