Video game advertising continues to boom

Worldwide advertising spending in or around video games is expected to reach $7.2 billion by 2016, up from $3.1 billion this year, according to a new study by DFC Intelligence.


In North America, the figure is predicted to rise from $1 billion in 2010 to $2 billion by 2014.

These ads typically appear within the games as billboards, posters or product placements. Some are in the form of pre-game spots or as games developed by brands themselves, Variety reported.


About 78 percent of game ad revenue will come from advergames or ads wrapped around games in 2016, noted DFC.


According to analysts, in-game advertising is always seen as a growth opportunity. In 2009,Group M expected that the global market to increase to $1 billion by 2014, which has been already overtaken.


For marketers, in-game ads seem to be a great way to target younger males. So it’s not surprising that cfast food, soda, snack, apparel and auto companies have taken advantage of the popularity of sports and racing titles.


However, DFC noted that advertising is expected to go broader, as games on Facebook and cellphones draw more attention from casual gamers.


“Video games have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population,” according to DFC analyst Michael Goodman. “Despite this, advertisers continue to underutilise videogames as an advertising vehicle. This is slowly changing as more games go online.”


Image: RebeccaPollard via flickr

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