Gaming Ad News - July 20 - August 2, 2024

Hi everyone, and welcome to the latest edition of our gaming newsletter! What news do we have today?

In the rapidly evolving landscape of gaming, a recent Warc Media report reveals that despite the $183.9 billion global gaming market and its 3.4 billion players, in-game advertising remains undervalued, with 3.7% of total US digital ad spend forecasted for 2024.?

Meanwhile, the International Olympic Committee has officially confirmed that the inaugural Olympic Esports Games will take place in 2025, aiming to engage the esports community while promoting Olympic values, despite concerns over the host country's human rights record.?

Additionally, a Comscore survey shows that two-thirds of gamers view in-game ads positively, with 45% willing to watch ads for rewards, highlighting a significant opportunity for brands to connect with a diverse and engaged audience.

For more news and details about the gaming industry, scroll down and dive in!

Gaming's $184bn market undervalued by advertisers

A recent Warc Media report highlights the underutilization of gaming as an advertising medium, despite the global gaming market generating $183.9 billion annually and reaching 3.4 billion players. In-game advertising spend remains low, with only 3.7% of total US digital ad spend forecasted for 2024, despite 90% of advertisers considering gaming a brand-safe channel.?

The complexity of the gaming ecosystem spans various devices and formats, and while gaming generates higher attention rates, many brands remain hesitant to invest. Game publishers are working to enhance ad capabilities, but effective advertising in gaming requires support from other channels to maximize engagement.

International Olympic Committee votes to confirm the first Olympic Esports Games will happen in 2025

The International Olympic Committee (IOC) has officially confirmed that the first Olympic Esports Games will take place in 2025, following a unanimous vote by its executive board. This event, planned for an initial run of 12 years, aims to engage the esports community while promoting Olympic values, though the specific games and host city are yet to be determined.?

IOC President Thomas Bach emphasized the partnership with the National Olympic Committee of Saudi Arabia, which has a significant stake in the esports industry, as a way to adapt to the digital revolution. Despite the potential for sportswashing concerns, Saudi officials tout their Vision 2030 plan as a transformative initiative for society, including advancements in women's sports.

Two-Thirds of Gamers Say In-Game Ads Don’t Negatively Affect Their Experience

According to the Comscore survey, two-thirds of gamers believe in-game ads have a "positive or neutral" impact on their experience, with 45% willing to watch ads for in-game rewards. The "State of Gaming 2024" report reveals that 62% of adults aged 18 and up play video games, spending a total of 45 billion hours on online video content in 2023.?

Notably, 82% of gamers have made in-game purchases, and over two-thirds express interest in brands featured in games, often turning to social media for more information. Additionally, esports and livestreaming are increasingly popular, especially among younger generations, with 86% of Gen Z and 80% of Millennials having watched esports content.

How Video Game Ad Sales Can Beat This $11.5 Billion Projection

The gaming industry boasts 3.38 billion gamers worldwide, yet ad spending is projected at only $8.5 billion this year, significantly lower than the $28 billion for connected television. Despite the industry's estimated $406 billion market size and the rise of mobile gaming, which has 2.8 billion players, traditional media metrics struggle to capture gaming's unique engagement.?

Nearly 90% of U.S. media buyers find gaming ads effective, but many remain hesitant to invest due to measurement complexities and client resistance. As the industry evolves, opportunities for brands to engage with diverse audiences are expanding, particularly as gaming continues to attract a broader demographic beyond the stereotypical teenage male gamer.

Why Coach is entering Roblox to win over younger shoppers

Coach launched its “Find Your Courage” campaign in July, featuring themed digital wearables and experiences based on its Spring 2024 collection on platforms like Roblox and Zepeto. This initiative targets Gen Z, a demographic that values digital self-expression. Roblox reported 77.7 million daily active users and 30 million visits to its Fashion Klossette game.

The strategy aims to build relationships with younger audiences, as Coach acquired 1.2 million new customers in North America, with over half being Gen Z and Millennials. The brand seeks to leverage these digital experiences to drive real-world sales, with 84% of Gen Z users indicating they are likely to try a brand after engaging with it in a virtual environment.

What’s more? Check our CEO’s video about the partnership with Semasio!

Rafal Szychowski, our CEO, discusses our partnership with Semasio in his latest video. Check out this short episode to discover the gaming segments you can reach through Semasio on DV360.

Our mobile and desktop data is available for the US market. For a full gaming taxonomy, contact us at [email protected].?

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