Publishers are all looking to level up their revenue and audience engagement, and in-game advertising is the power-up many have been looking for. 

The gaming industry has entertained all demographic types for quite some time and is now filled with opportunities for advertisers, marketers, and publishers. Comscore’s State of Gaming 2024 report reveals that 62% of adults are now actively engaged in video gaming, with a significant portion playing across multiple platforms. 

In-game advertising is gaining traction, with 45% of gamers showing openness to rewarded ads. This shift and the notable success of video game-themed movies at the box office reflect gaming’s deepening cultural impact. Brands that recognize the potential within this space can unlock new avenues for reaching a diverse and highly engaged audience.

Furthermore, the report emphasizes the unique advertising formats available within gaming, such as in-game product placements and livestream sponsorships. Amplified by the strong social connections nurtured through gaming, these options empower brands to forge meaningful connections with consumers.

What are the Demographics? 

The online gaming community continues to expand, encompassing millions of homes and devices across the United States. 40% of U.S. households are active on a gaming console within a month. 

Among adults aged 18 and older, 62% play video games, illustrating the widespread appeal of gaming today. Moreover, a significant portion of gamers — 77% to be exact — are engaging with more than one platform, whether PC, console, or mobile. 

This is a significant audience ripe for the picking. 

Millennials dominate online gaming, representing 49% of gamers, while Gen Z accounts for 13%, Gen X for 28%, and Baby Boomers for 11%. This diverse gaming population spans a wide variety of annual household income ranges, with 16% of gamers earning less than $24,999, 25% earning between $25,000 and $49,999, 20% earning between $50,000 and $74,999, 18% earning between $75,000 and $99,999, and 20% earning $100,000 or more. 

In layman’s terms, this is a significant amount of spending power to direct advertising campaigns.

New Gaming Formats, New Advertising Opportunities

Thanks to its unique formats and diverse ad types, gaming offers numerous opportunities for advertisers and marketers. These include in-game or product placement ads, rewarded advertisements, and livestreams, each providing distinct ways to engage with gamers.

Among gamers who have encountered product placement ads, 34% agree that these placements make the gaming experience feel more authentic. Additionally, 45% of gamers who have seen regular or pop-up ads agree that they don’t mind the ads if they receive rewards for watching them.

Nearly two-thirds of gamers say that advertisements positively or neutrally impact their gaming experience. Specifically, 64% of primarily PC gamers and 75% of both console and mobile gamers agree that ads don’t detract from their gaming experience.

And the reviews from consumers are:

Consumers are paying attention to these ads at a high rate, making attention metrics for a campaign more important than ever as publishers and advertisers work to improve audience engagement.   

For example, Tommy Hilfiger used in-game ads to showcase its latest designs to drive awareness among a new, untapped audience and generate buzz for their Classics Reborn Spring campaign. The results included a 14% lift in ad recall after exposure, a 20% in brand favorability, a 24% in brand recommendation, and a 23% lift in purchase intent.

Unlocking the Potential of In-Game Advertising: Targeting Multiplatform Gamers

If you are thinking, what next steps can I take to make sure you have the right strategy to level up your in-game advertising efforts, here is Comscore’s final advice:

Embrace Multiplatform Targeting: With 77% of gamers engaging across multiple devices and 40% playing on all available platforms, brands must leverage multiplatform strategies to maximize their reach and effectiveness.

Harness In-Game Advertising: The growing importance of in-game advertising offers advertisers a unique opportunity to achieve incremental reach that traditional methods may not deliver.

Optimize Reach and Engagement: By integrating in-game ads, brands can tap into the vast and diverse gaming audience, ensuring their messages are seen by users across various platforms and enhancing overall campaign performance.

The post Level Up Your Revenue With the Exploding Potential of In-Game Advertising for Publishers appeared first on AdMonsters.

AdMonsters asked Ginny Musante, Director of Marketing, Xbox LIVE Advertising, Microsoft, a few questions about this new ad platform.

Q: Is NUads just for the Xbox Dashboard, or would this apply to in-game advertising and how would that work? Are there other potential uses for the NUads format?

Ginny Musante: NUads transform passive TV advertising into engaging and actionable experiences using the voice- and gesture-control of Kinect for Xbox 360. NUads invite the consumer into a conversation with the simplicity of a spoken word or a wave of a hand. NUads offer what is most scarce to TV advertisers today – engagement — by moving consumers down the purchase path in their own living room.

 
Q: What is the potential of NUads for advertisers?

Ginny Musante: NUads gives new life to the 30 second spot.  With NUads, we’re making interacting with TV as natural as watching TV.  The potential is huge.  For the first time advertisers can take a TV spot and convert awareness to an immediate call to action in a way that is easy and natural for the consumer. With Kinect, we put consumers at the center of their entertainment. With NUads, we’re allowing advertisers to keep them at the center. The 30-second spot will never be the same again.

Q: When will the platform be available?

Ginny Musante: The first NUads will be available in Spring of 2012.

Q: What reporting metrics are available for the NUads platform? How is engagement measured?

Ginny Musante:  The same metrics we have with Xbox LIVE today.  Impressions, CTR, UUs as well as age, gender and geo targeting.

Q: If I’m an agency that wants to run a NUads campaign what would be the process for that?

Ginny Musante: NUads are easy to implement – all you need is a 30-second spot, a URL and a call to action. Xbox LIVE will do the rest.

For more information on the NUads platform and to see a demo check out this detailed post from Microsoft Advertising Blog.

On Tuesday at the Cannes International Advertising Festival, Microsoft introduced their NUads product – an ad product for that works with Xbox Kinect. That means users can interact with advertising via voice command and movement. AdMonsters asked Ginny Musante, Director of Marketing, Xbox LIVE Advertising, Microsoft, a few questions about this new ad platform.

The post Microsoft Unveils NUads: Interactive Ad Product at Cannes appeared first on AdMonsters.