Gaming World Remains Largely Untapped by Marketers
In an era where digital advertising seems to have infiltrated every corner of our lives, there’s a shocking US$183.9 billion (RM826 billion) industry that’s flying under the radar of most marketers.
The gaming world, a vibrant ecosystem teeming with engaged users, remains largely untapped by advertisers.
But why are brands missing out on this golden opportunity?
The Sleeping Giant of Advertising
The global gaming market is a behemoth, generating a staggering US$183.9 billion in revenue, according to WARC’s latest global advertising trends report, “Gaming: Advertising’s Untapped Opportunity.”
In 2024, US advertisers are projected to invest only US$6.7 billion billion on in-game ads – a mere 3.7% of all digital ad spend.
This disconnect between market size and advertising investment raises eyebrows and questions alike.
Brand Safety: A Non-Issue
One might assume that brand safety concerns are holding advertisers back.
Surprisingly, that’s not the case.
A whopping 90% of advertisers agree that gaming is a particularly brand-safe channel, thanks to advanced tools like fraud detection and age rating systems.
So, what’s stopping them from diving in?
The Attention Jackpot
When it comes to capturing eyeballs, gaming is hitting the jackpot.
Research from Dentsu. Lumen and Activation Blizzard shows that in-game video ads achieve a perfect 100% on-screen impression rate, surpassing the industry benchmark of 83%.
Not only that, but these ads also garner an average of over 10,000 attentive seconds.
In a world where attention is the new currency, gaming is proving to be a gold mine.
The Generational Shift
If you thought gaming was just for kids, think again.
While Gen Z leads the pack with an average of 12.2 hours per week spent gaming, older generations are catching up fast.
A surprising 72% of 35-54 year-olds game at least once a week, and even 46% of those over 55 are getting in on the action according to research by Newzoo.
This diverse demographic spread offers brands an unprecedented opportunity to reach across age groups.
Publishers Paving the Way
Game publishers aren’t sitting idle.
They’re actively building advertising capabilities and working to prove the effectiveness of in-game ads.
Unity, for instance, reported a 26.7% year-on-year rise in advertising revenue, with in-app ads leading the charge.
Even streaming giant Netflix has invested a cool US$1 billion in its gaming business, seeing a 200% increase in downloads since 2022.
Complex and Challenging Road Ahead
Despite the enormous potential, the gaming advertising landscape remains complex and challenging.
As Alex Brownsell, WARC Media Head, points out, “Gaming is huge, both in audience and cultural impact, and it’s a highly complex ecosystem that spans devices and platforms, defying conventional definitions of a channel.”
The key to unlocking this potential lies in providing concrete evidence of gaming’s effectiveness as an advertising medium.
As game publishers focus on improving ad monetisation, the onus is on marketers to recognise and capitalise on this burgeoning opportunity.
In a world where brands are constantly seeking new ways to engage consumers, the gaming industry stands as a largely untapped reservoir of potential.
The question isn’t whether brands should be investing in gaming advertising, but rather, can they afford not to?
