John Bishop, VP of Business Intelligence
Earlier in the year, we predicted that gaming advertising would secure a more solidified place on advertisers’ media plans. That was due to our expectations that advertisers en masse would wake up to the fact that gaming ads can be prime reach vehicles and aren’t as brand unsafe as many expect.
Were we right? Our recently-published annual Gaming Advertising Report does in fact suggest that the landscape of gaming advertising is gaining momentum, and advertisers that stay ahead of the curve are poised to reap significant benefits.
Advertiser Perceptions recent Gaming Advertising study helps shed some light on emerging shifts in perceptions that are shaping the future of advertising in this dynamic space:
Reach and ROI Drive Advertiser Interest
Gaming is no longer just a niche market for advertisers. It’s becoming a powerful tool for more advertisers in reaching those elusive, hard-to-reach audiences, especially younger consumers who are increasingly spending more time in gaming environments. The ability to target specific demographics, interests, and behaviors within gaming platforms is proving valuable for marketers seeking to maximize their ad spend with effective engagement. More importantly, advertisers are seeing tangible results from their gaming campaigns, such as improved ROI and increased purchase intent driving interest in further investment.
Brand Safety Concerns Fading?
While brand safety has historically been a concern for some advertisers in the gaming space this perception is changing. As advertisers gain more trust in gaming platforms, they are seeing the opportunity to connect with key audiences, slowly becoming more confident in placing their ads within these environments. However, the rise in perception that the same audiences can be reached more effectively elsewhere is a growing challenge that gaming platforms need to be mindful of and ultimately address.
Funding Follows the Trend
Advertisers are increasingly recognizing the value of gaming and are reallocating budgets from traditional advertising channels to capitalize on this growing opportunity. This shift in funding reflects the confidence marketers have in the effectiveness of gaming advertising to deliver results, especially in the face of changing consumer engagement habits.
Need for Guidance Persists
Navigating the complexities of gaming ad placements can be daunting for marketers new to this space. The study indicates a need for more training and case studies directly from game developers and platforms to help marketers understand the intricacies of ad selection and execution within gaming environments.
Mobile Games and Gaming Adjacent Content Lead the Way
As mobile gaming apps have exploded in popularity, advertisers are well-aware of the potential this now ubiquitous platform holds for reaching a massive and engaged audience. Advertising within content surrounding gaming IP is also gaining traction as effective ways to connect with gamers. Subscription-based streaming and cloud gaming services also present a promising avenue for future advertising opportunities as these services continue to grow.
Adtech Adoption on the Rise
Familiarity and usage of adtech providers in gaming are increasing, indicating a growing sophistication in how advertisers are approaching this space and where some of their needs may be when it comes to support and ad execution. However, continued consideration and growth of adtech within gaming advertising remains uncertain, suggesting an opportunity for continued innovation and education.
Looking Ahead
The gaming advertising landscape is ripe with potential for marketers willing to embrace its unique dynamics. As technology continues to advance and gaming platforms evolve, we can expect even more innovative and effective advertising solutions to emerge. Brands that invest in understanding this space and collaborating with game developers and platforms are well-positioned to connect with a highly engaged and valuable audience in the years to come.
Next Level in 2025?
The opportunity for gaming advertising to gain traction within the ad ecosystem in 2025 is ripe. Marketers see ad agencies and ad tech partners as key experts in gaming advertising. With concerns about brand safety in gaming lessening and an increasing openness of budget allocation, agencies and ad tech firms have an opportunity to educate advertisers on the advantages of gaming ads. Building trust in this space will lead to stronger partnerships, with advertisers investing more and relying on these expert partners for campaign creation and execution.