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In-Game Advertising Recovers After a Downturn in 2022; Revenues to Grow by 10% and Hit $32.5B this Year

Jastra Kranjec

With more than 2.7 billion gamers worldwide, in-game advertising can give brands incredible reach. Over the past five years, the revenue from this form of marketing has more than doubled before seeing a downturn in 2022, the first in the market’s history.

According to data presented by CasinosEnLigne.com, in-game advertising revenues are expected to continue growing in 2023 and hit $32.5bn worldwide, 10% more than last year.

In-Game Advertising Revenues to Grow by a CAGR of 9.2% and hit $46B by 2027

In-game ads are more powerful and effective than pop-ups or banners usually seen in mobile games. They are non-interruptive, allowing players a seamless experience, and can be integrated into desktop and mobile games via commercials, cutscenes, billboards, and background displays.

Almost 70% of console gamers, 65% of PC gamers, and 74% of mobile gamers feel positive or neutral about these ads, which benefits both advertisers and game developers. Advertisers can target a highly engaged audience and reach players worldwide at a lower cost and with higher ROI. Game developers, on the other hand, can generate additional revenue streams, balance their development costs, and offer games for free or at a lower price.

According to a Statista survey, between 2017 and 2020, global in-game advertising revenues increased by 55%, jumping from $14.8bn to $22.8bn. In 2021, the entire market exploded, with revenues surging by nearly 30% year-over-year to $29.6bn worldwide. However, after impressive revenue figures driven by the explosive growth of the gaming industry and the rise of online multiplayer games, the entire market saw a downturn in 2022, with revenues falling by $160 million year-over-year.

Statista expects this to change in 2023, with in-game ads generating $3bn more in revenue than last year. The entire market is forecast to continue growing by a CAGR of 9.2% between 2023 and 2027 resulting in a market volume of more than $46bn.

Almost Half of the Total In-Game Ad Revenue Comes from China

In global comparison, China is the world`s largest and fastest-growing in-game advertising market. Chinese in-game ad revenue is expected to grow by almost 13% YoY and hit $15.6bn, or 48% of the world`s total this year. As the second-largest globally, the US market will see only half that revenue, or around $8.5bn.

Japan, the United Kingdom, and South Korea follow with $2.2bn, $685 million, and $676 million, respectively. Statistics show the top five markets will together generate more than 85% of total in-game advertising revenue this year.

Jastra Kranjec
Jastra Kranjec

Jastra is an editor, writer, and PR specialist with years of experience in the news, research, and report writing. Over the years, she has covered different topics including gaming, the entertainment industry, and the tech market.