According to the latest market research study released by Technavio, the global video games advertising market is expected to grow at a CAGR of close to 14% during the forecast period 2016-2020.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the global video games advertising market based on type:
Global video games advertising market by type 2015
|
Interstitial Ads |
36.70% |
|
Rewarded Ads |
27.89% |
|
Banner Ads |
17.48% |
|
Native Ads |
15.24% |
|
Others |
2.69% |
Source: Technavio
The top four revenue contributing product segments are discussed below:
Global interstitial video game advertising market
The global interstitial video game advertising accounted for almost 2 billion in 2015 and is predicted to grow at a CAGR of around 16% by 2020. These are ads which pop-up in between the gameplay and cover a sizable amount of the screen while pausing the game. The rapid adoption of freemium models and video ads in the interstitial advertising segment will be the primary market driver of this sector. These ads receive higher attention as it interrupts the gamer while playing and occupies the majority of the screen space. New models of advertising in this segment is becoming extremely popular and boosting the growth of this sector.
“This medium is a cost-effective form of advertising as it requires relatively less investment and it accounted for the highest video game advertising revenue. These ads have higher CTR compared with other forms of advertising in video games at around 6% in 2015. This ad format is fast becoming popular as it has a low conversion rate,” says Ujjwal Doshi, a lead analyst at Technavio for research on publishing and advertising.
Global reward-based video game advertising market
The global reward-based video games advertising accounted for more than $1 billion in 2015 and is predicted to grow at a CAGR of almost 7% by 2020. These are incentivized advertisements where the gamer receives an incentive in the form of in-game currency for viewing the advertisement. The game developers are employing in-app purchases, and it is the most efficient way of generating revenue for the game publishers. Reward-based ads are becoming attractive due to the rapid popularity of in-app purchases. This format is very common for smartphone games, and it offers various benefits that includes gameplay extensions, progress shortcuts, and unlocking hidden content.
Global banner video game advertising market
The global the banner video game advertising accounted for almost $753 million in 2015 and will reach around $700 million by 2020. These are ads that are displayed at the top or the bottom of the screen during the game. These ads are displayed to the user based on the information collected from browsing history and interests of the gamers. These ads are relevant according to the consumer needs as the advertisements use real-time bidding (RTB). These ads are the least expensive format, occupies less space on the screen, and are always present on the screen even during the game.
Global native video game advertising market
The global native ads accounted for almost $1 billion in 2015 and is predicted to grow at a CAGR of more than 28% by 2020. In this medium of advertising, the advertisers partner with the game developers to insert their ads and are shown within the game in the form of billboards and street furniture. Native advertising is the latest trend in the video game advertising market. Through this form of advertising, it offers the gamer a real life experience and the person feels more connected to the game. This format is advantageous for both the game developer and the advertiser as it attracts new customers for the advertisers and enables the game developers to provide the ultimate gaming experience.
The top leading vendors operating in the global video games advertising market are:
- BrightRoll
- Flurry
- InMobi
- ONE
Other prominent vendors in the market include AppNexus, Byyd, Fiksu, iAd, Kiip, Matomy Media, Millennial Media, Platform One, MobPartner, MoPub, Tapjoy, SpotXchange, Tremor Video, and TubeMogul.
A more detailed analysis is available in the Technavio report titled, ‘Global Video Games Advertising Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Digital Video Content Market 2016-2020
- Global Mobile Ad Spending Market 2016-2020
- Global Location-based Search and Advertising Market 2016-2020
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