U.S. HISPANIC
WARC report: Gaming is A Cultural Powerhouse Undermined by Low Ad Spend
1 de agosto de 2024
According to the report, enthusiasm for in-game advertising peaked during the pandemic, but has since waned
Despite its massive global audience and profound cultural impact, in-game advertising remains a significantly underutilized opportunity for brands, according to WARC Media’s latest Global Ad Trends report, ‘Gaming: Advertising’s untapped opportunity’.
“Gaming has long been hailed as a vital emerging opportunity for brands, particularly those seeking to connect with younger audiences,” notes Alex Brownsell, head of WARC Media. “However, the complex ecosystem of devices and platforms has hindered in-game advertising’s growth. While this landscape is evolving, more evidence is needed to fully establish gaming as a robust advertising medium.”
Some of the key findings from the report include:
- Massive audience, untapped potential: The gaming industry dwarfs the combined revenue of the music and film industries, with 3.4 billion global players spanning all age groups. Despite this, in-game ad spend doesn’t reflect the scale of the audience or its cultural influence.
- Declining ad investment: Enthusiasm for in-game advertising peaked during the pandemic, but has since waned. The share of advertisers planning to increase gaming ad spend has dropped 20 percentage points since 2021, despite widespread recognition of gaming as a brand-safe channel.
- Complex ecosystem: The gaming advertising landscape is intricate, encompassing various devices, genres, formats, and market preferences. This complexity, coupled with diverse gamer profiles, has contributed to slow ad adoption.
- Publishers building ad capabilities: Game publishers are increasingly focused on ad monetization, developing dedicated teams and tools. While gaming offers full-funnel potential, most brands currently use in-game ads for mid- and upper-funnel objectives.
- High attention and engagement: Research shows that in-game ads command significantly higher viewability and attention rates than traditional ad formats. Gamers are also deeply engaged with gaming content, often consuming related content beyond gameplay.
- Industry investment: Major players are betting on the future of gaming. Netflix’s $1 billion investment in gaming and the New York Times’ focus on gaming content underscore the medium’s potential.
“While challenges remain, the gaming industry is making strides to become a more attractive advertising channel,” adds Brownsell. “As publishers enhance their ad capabilities and marketers gain a deeper understanding of the gaming ecosystem, we expect to see a surge in in-game ad spend.”
