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In-Video-Game Ad Spend Projected to Reach $11.5 Billion by 2027

Advertisers plan to increase spend on in-video-game advertising by 40% this year, according to a new study, with total ad spend set to reach $8.5 billion in 2024 and increase to $11.5 billion by 2027.

In IAB’s “Changing the Game: How Games Advertising Powers Performance” report, which was revealed Tuesday, 86% of advertisers surveyed said gaming ad spend is “brand safe” and 85% are confident in their ability to measure the reach of games advertising.

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Additionally, the study finds that 90% of ad buyers find gaming ads to be effective in reaching “valuable, hard-to-reach audiences with relevant messaging,” with an estimated 213 million gamers in the U.S.

The report revealed 79% of advertisers say that buying in-game ads is “relatively easy.”

“This is the first large-scale quantitative analysis of brands and agencies with experience purchasing games advertising,” IAB research and insights senior vice president Jack Koch said. “The study found that advertisers view games advertising as a measurable, brand safe medium that is effective across the entire consumer journey. Marketers can no longer afford to ignore this medium if they want to reach the more than 200 million U.S. consumers that play video games.”

IAB has also released guidelines and best practices for games advertising, which address various ad formats, promoting collaboration among gaming and advertising professionals and balance between advertising goals and user satisfaction.

“Our creative guidelines and best practices in advertising in gaming aims to help preserve the player first ethos and help brands get it right when activating in games,” IAB Experience Center vice president Zoe Soon said. “From interactive overlays to rich media experiences, we’re providing guidelines and identifying best practices to ensure ads enhance rather than disrupt gaming. By encouraging collaboration within the gaming and advertising communities, we’re building a future where ads not only meet brand goals but also contribute to a gaming journey that everyone can enjoy.”

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