With the global gaming industry reaching unprecedented heights, media owners have begun to view in-game environments as potential advertising real estate. In-game advertising can range from virtual billboards to banners and interstitials that pop up between levels, to un-skippable videos that play to achieve rewards. In-game advertising offers brands an opportunity to connect with an engaged and increasingly diverse audience in an uncrowded space. We looked at the main challenges and opportunities facing the industry today:

Challenges facing In-Game Advertising

1. Audience Engagement: Many players view video games as an escape from the real world and may be resistant to intrusive advertisements. Be engaging, relevant, and respectful of the gaming experience.
2. Measurement and Tracking: Traditional metrics such as views, clicks, and conversions might not apply in the gaming world (yet, anyway). The industry is still grappling with how to track ad effectiveness and return on investment (ROI).
3. Cost and Accessibility: Inventory is costlier, as it's an emerging marketplace. The process of creating ads that fit seamlessly into different gaming environments may be complex and costly.

Opportunities for Marketers

In spite of these challenges, in-game advertising holds potential for media buyers:

1. Access to Diverse Demographics: Gamers come from diverse demographic backgrounds, offering advertisers an opportunity to reach a broad audience. Brands can tailor messages to different segments within the gaming community.
2. Innovative Ad Formats: In addition to display banners, interstitials and video inventory, branded skins, items, and characters, as well as sponsored in-game events, can offer innovative ways to engage with players.
3. Growth of Mobile and VR Gaming: The surge in mobile and VR gaming presents additional opportunities for advertisers, from interactive ads that players can touch or interact with, to immersive ads that take advantage of VR's 3D environments.

Key Takeaways

• Know your audience — Dive deeper into your audience. Find where they're gaming, how they are gaming, how much time spent i.e. are they mobile gamers v console gamers. Identifying this early will help reach a higher quality audience.
• Do your homework on inventory — Make sure you identify the right games (audience quality, brand safety) with inventory that suits your brand and budget, to achieve a greater ROI. And on returns…
• Start simple with objectives — Measurement and tracking in this industry is in its infancy, so start with simple objectives such as viewability and impression count. Once measurement and attribution evolve, so can your objectives.