In-Game Advertising Market

In-Game Advertising Market Size and Share:

The global in-game advertising market size was valued at USD 8.65 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 19.64 Billion by 2033, exhibiting a CAGR of 8.78% during 2025-2033. North America currently dominates the market, holding a significant market share of over 36.8% in 2024. The expanding use of video games as a form of entertainment, the growing penetration of the internet, the growing trend of digitalization and connectivity, and the quick development of ad technology are some of the major factors propelling the in-game advertising market share.

The global in-game advertising market is driven by the rapid growth of the gaming industry, fueled by increasing smartphone penetration and internet accessibility. Along with this, the rise in free-to-play games, which rely on ad revenue, has created lucrative opportunities for advertisers. Advanced technologies such as programmatic advertising and AI enable precise targeting, enhancing ad effectiveness. Besides this, the shift toward immersive gaming experiences, including augmented reality (AR) and virtual reality (VR), further attracts brands. Additionally, the growing esports audience and in-game purchases amplify in-game advertising market growth. Advertisers are also leveraging user data to deliver personalized ads, ensuring higher engagement and ROI in this dynamic digital ecosystem. Esports is estimated to reach a global audience of 611 million by 2024, growing 5% year-on-year to 641.1 Million in 2025. Market revenues are projected to be most prevalent in North America, Europe, and East Asia. Esports revenue in the United States will reach USD 1.07 Billion, largely due to esports betting, which is forecast to drive USD 721.2 Million. The rising passes for popular games, including League of Legends and Valorant, indicate the major growth in the Esports market, thus offering significant opportunities for in-game advertising to engage a vast and dedicated audience.

The United States stands out as a key regional market, primarily driven by the increasing time spent on gaming platforms, particularly among younger demographics. According to a 2024 consumer survey, nearly 65% of the American population, or around 182.7 million individuals, had played video games in the past three months. In fact, 61% of these gamers play across multiple devices. In addition, mobile leads with 49% of gaming activity. Moreover, we can see that 18% of the population are hardcore gamers, who spend up to 42 hours a week gaming, mostly first-person shooters or open-world action. Gaming is quickly becoming more relevant than traditional media for Generation Z and Millennials, and with engagement soaring, the opportunity for in-game advertising targeting an engaged audience is increasing. In line with this, the shift toward digital entertainment and the decline of traditional media have pushed advertisers to explore gaming as a key channel. The rise of cross-platform gaming and cloud gaming services expands the audience base, offering broader reach for ads. Additionally, the ability to track user behavior and measure ad performance in real-time enhances advertiser confidence. The growing trend of interactive and non-intrusive ad formats, such as rewarded videos and native ads, also improves user acceptance, further improving market growth.

In-Game Advertising Market Trends:

Increasing popularity of gaming

The in-game advertising market growth is significantly driven by the dramatic rise in the number of gamers globally due to accessibility to mobile gaming and the proliferation of gaming consoles and PCs. According to a study, the world's leading live streaming platform for gamers saw an 83% year-on-year uprise in viewership when the pandemic hit, with over 5 Billion hours of content viewed in the second quarter of 2020 alone. This diverse, engaged audience is especially attractive for brands looking to target specific demographics such as young adults and teenagers, who are often difficult to reach through traditional advertising channels. Therefore, this is creating a positive in-game advertising market outlook.

Rising popularity of e-sports

There are more opportunities for in-game sponsorships and advertising due to the growing popularity of e-sports competitions and game streaming on websites including Twitch and YouTube. Large audiences attend these events, providing advertisers with excellent exposure and interaction opportunities. According to research, 439 Million individuals worldwide watched esports events in 2020, a 10% increase from 2019. These platforms collect a ton of information about their users, including their interactions, viewing habits, and preferences. With the help of this data, advertising campaigns can be more relevant and successful by being highly targeted and catered to the audience's unique interests and demographics, thus escalating the in-game advertising market demand.

Technological advancements

Over the years, more interactive and interesting ad formats have been made possible by advancements in gaming technology, including AR, VR, and AI. With the use of these technologies, advertisements are incorporated into the story or interactive aspects of the game in a way that adds to rather than takes away from the gameplay experience. Therefore, the growing market for augmented reality (AR), which is predicted to reach USD 102.7 Billion by 2032 and exhibit a growth rate (CAGR) of 27.2% during 2024–2032, and the growing market for virtual reality gaming, which, according to IMARC GROUP, is expected to reach USD 313.5 Billion by 2032 and exhibit a growth rate (CAGR) of 25.8% during 2024–2032, are creating a favorable in-game advertising market forecast.

In-Game Advertising Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global in-game advertising market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on type and device type.

Analysis by Type:

• Static Ads
• Dynamic Ads
• Advergaming

Static ads stand as the largest component in 2024, holding around 43.2% of the market. Static advertisements are stationary commercials that fit in well with the gaming environment and give advertisers a discrete means of promoting their goods and services. This type of advertising can be simply incorporated into a wide range of gaming platforms, including PC, console, and mobile games, without requiring major modifications to the game's code or functionality. Apart from this, it also enables advertisers to reach a wide audience without being limited by technical limitations. Consequently, the need for static advertisements is increasing due to the increased popularity of gaming consoles. The global gaming console industry is anticipated to reach USD 40.3 Billion by 2023, according to a report published by IMARC Group.

Analysis by Device Type:

• PC/Laptop
• Smartphone/Tablet

PC/laptop leads the market with around 57.6% of market share in 2024. In the gaming industry, PC/laptop gaming leads the market as it enables advertisers to access to a wide range of players. 92% of all households in 2018 had at least one type of computer, and 85% had a broadband internet subscription, according to the United States Census Bureau. Due to their strong hardware and larger screens, PCs and laptops provide plenty of space for advertisements, making in-game ad placements more effective and engaging. Furthermore, as PC and laptop users frequently play games for extended periods of time, advertisers get an excellent opportunity to interact with players.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, North America accounted for the largest market share of over 36.8%. North America, particularly the United States and Canada, has the largest in-game advertising market revenue due to the high penetration rate of digital devices and internet connectivity, which supports an extensive base of gamers across various platforms, including mobile, PC, and consoles. According to the Entertainment Software Association, nearly 227 million Americans play video games. Two-thirds of adults and three-quarters of kids under 18 play video games weekly. Across all ages, 80% of players are over 18, and the average age of a video game player is 31. In total, players are about half female (45%) and half male (55%). This wide and active gaming population provides a substantial audience for in-game advertising. Besides, North America hosts major gaming publishers and e-sports leagues, which facilitate collaborations and partnerships with advertisers. The strong e-sports ecosystem in the region, including major tournaments and events, offers additional high-visibility platforms for in-game advertising.

Key Regional Takeaways:
 

United States In-Game Advertising Market Analysis

The US accounted for around 88.50% of the total North America in-game advertising market in 2024. The in-game advertising market in the United States is significantly expanding as brands capitalize on gaming’s engaged audiences. High smartphone penetration and widespread console and PC gaming create a lucrative ad space, with advertisers increasingly adopting programmatic placements, native ads, and branded integrations. Free-to-play games, supported by ad-based monetization, contribute to significant revenue growth. AI and analytics advancements enhance ad targeting precision, ensuring more effective engagement. Leading game developers such as Activision Blizzard, Electronic Arts, and Epic Games seamlessly integrate ads to minimize gameplay disruption while maximizing brand exposure. The expansion of esports and game streaming platforms further amplifies advertising opportunities. According to reports, Twitch remains the leading game streaming platform, with 2.5 million average concurrent viewers. YouTube expanded its share from 21% in Q1 2023 to 30% (1 million viewers). As gaming becomes more social and immersive, advertisers explore interactive and rewarded ads. Future innovations in AR and VR will further enhance in-game advertising experiences, keeping the U.S. market at the forefront of digital advertising.

Europe In-Game Advertising Market Analysis

Europe’s market is flourishing, supported by a strong mobile gaming sector and increasing regulatory clarity around digital advertising. For instance, according to reports, 53% of Europeans play video games, with an average player age of 31.4. Gaming revenue distribution shows console and mobile gaming each generating 41%, with PC at 14%. Countries such as the UK, Germany, and France lead market expansion, fueled by widespread smartphone adoption and high participation in casual and competitive gaming. Programmatic advertising, rewarded video ads, and product placements dominate the sector, with advertisers focusing on non-intrusive ad formats. European publishers, including Ubisoft and CD Projekt, integrate creative in-game ad solutions that maintain seamless gaming experiences. The rise of cloud gaming services including NVIDIA GeForce Now and Xbox Cloud Gaming offers new advertising channels, while esports and influencer-driven content on YouTube Gaming further expand brand visibility. GDPR regulations shape targeting strategies, pushing advertisers toward ethical and privacy-compliant ad placements.

Asia Pacific In-Game Advertising Market Analysis

Asia Pacific dominates the global in-game advertising market, fueled by a massive gaming population, high mobile penetration, and strong markets in China, Japan, and South Korea. Mobile gaming flourishes, supported by super-app ecosystems such as WeChat and LINE, allowing seamless ad integration. Hyper-casual games rely on in-game ads, with rewarded video and interactive formats gaining popularity. China’s strict regulations influence ad strategies, while Japan’s console-heavy market favors subtle product placements. South Korea’s esports industry presents significant opportunities for sponsorships and immersive brand placements. India and Southeast Asia contribute to market expansion with rising gaming adoption and digital payment solutions. According to the 2024 IBEF report, India became the world’s largest gaming market in 2023, with 568 Million gamers and 9.5 Billion gaming app downloads. By 2028, professional gamers are expected to reach 1,250, driven by a young population. With 5G rollout and AR/VR innovations, Asia Pacific continues leading in-game advertising advancements.

Latin America In-Game Advertising Market Analysis

Latin America’s market is expanding rapidly, driven by growing smartphone adoption and mobile gaming dominance in Brazil, Mexico, and Argentina. Rewarded ads and interstitials are prevalent in free-to-play games, while in-game sponsorships augment brand visibility. For example, on December 10, 2024, Xsolla partnered with the Latin American Games Showcase (LAGS) to support game developers, featuring 30 LATAM games on YouTube and Twitch. Xsolla Partner Network helps developers connect with influencers (1,000–10,000 followers) to expand reach and revenue. Esports and streaming platforms including Booyah! and Nimo TV create additional advertising opportunities. While infrastructure limitations impact high-performance ad formats, 5G expansion will enhance targeting capabilities. Latin American publishers increasingly collaborate with global advertisers, integrating branded content and localized campaigns to maximize engagement in a growing digital gaming ecosystem.

Middle East and Africa In-Game Advertising Market Analysis

The in-game advertising market in the Middle East and Africa is expanding as mobile gaming adoption grows. The UAE and Saudi Arabia lead the sector, driven by high disposable incomes and government investments such as Saudi Arabia’s Vision 2030. By 2030, esports and gaming in Saudi Arabia could contribute USD 13.3 Billion (SAR 50 Billion) to GDP and create 39,000 jobs, as per the Kingdom’s National Gaming and Esports Strategy. Rewarded ads, in-game banners, and interactive ads gain popularity, while esports tournaments attract sponsorships. Africa’s mobile-first market thrives on ad-supported free-to-play games, with gamification strategies enhancing engagement. Internet improvements and 5G expansion will enhance ad opportunities in Nigeria, Egypt, and South Africa. Cultural considerations shape ad strategies, ensuring localization. As gaming becomes mainstream, in-game advertising will be a key revenue driver in MEA’s digital economy.

Competitive Landscape:

The in-game advertising market research report shows that game developers and advertisers are exploring new ways to blend real-world brands seamlessly into the virtual gaming environment using AR and VR elements. This integration enhances the player's immersion and delivers a more engaging and interactive advertising experience. Additionally, the rise of cloud gaming and streaming platforms has opened new opportunities for targeted and dynamic in-game advertising. Furthermore, advancements in data analytics and artificial intelligence (AI) by key players that enable precise targeting, optimizing ad placements, and measuring ad performance, makes in-game advertising more effective and appealing to brands seeking to connect with the vast and diverse gaming audience.

The report provides a comprehensive analysis of the competitive landscape in the in-game advertising market with detailed profiles of all major companies, including:

• Activision Blizzard Media Ltd.
• AdInMo Ltd.
• Adverty AB (publ)
• Anzu Virtual Reality Ltd
• Bidstack Limited
• Electronic Arts Inc.
• HotPlay
• IronSource Ltd. (Unity Technologies)
• Playwire
• RapidFire, Inc.

Latest News and Developments:

• In February 2025, Ampverse Pulse launched Pulse Media, a digital media buying platform for gaming advertising across the Gulf States. Offering access to 30,000 gaming creators, AI-driven ad optimization, and in-game inventory, it helps brands target a growing market, projected to reach USD 3.24 Billion by 2028.
• In January 2025, Apex Gaming Network partnered with League-M to enhance mobile gaming advertising in Europe. The collaboration introduces seamless ad formats, data-driven audience insights, and better monetization for developers. Their goal is to create engaging, non-intrusive ads that maximize revenue while maintaining an optimal gaming experience.
• In December 2024, Renovi launched its USD RNVI token, revolutionizing in-game advertising with blockchain technology. The platform raised 65% of its IDO funding in six hours and has 50,000 monthly users. Renovi integrates AI-driven, non-intrusive ads, enhancing monetization while expanding partnerships with game developers and esports platforms.
• In June 2024, Alumni Ventures invested in Anzu, an advanced in-game advertising platform that has raised USD 65 Million. Anzu integrates seamless brand placements in gaming environments across mobile, PC, console, and AR/VR, transforming digital advertising by engaging gamers without disrupting their immersive experiences.
• In February 2023, Anzu and Livewire, the global game tech and gaming marketing company, have announced a partnership in Germany. The collaboration will support Anzu and Livewire's footprint in Germany, permitting even more brands to reach gamers via non-intrusive in-game ad placements inside titles they love, where their attention is greatest.
• In August 2022, in-game advertising provider Adverty announced an exclusive partnership with digital marketing specialist Yazle, allowing the agency to exclusively represent and sell Adverty's full inventory in the Middle East and North Africa (MENA).

In-Game Advertising Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the in-game advertising market from 2019-2033.
• The in-game advertising market research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the in-game advertising industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.