Source: https://pixabay.com/photos/game-play-mobile-game-android-game-4740277/

Smartphones have come a long way from their humble beginnings, where the screens were small and the phone capabilities were limited. But perhaps no one was more excited about the new cutting-edge phones than gamers. Now they can play on the go and always find new games to play wherever and whenever they like.

This simple fact about mobile gaming didn’t escape advertisers. And the fact that the average age of the mobile gamer is 36 and that in 2020 there were 2.7 billion gamers worldwide just shows what a large and lucrative market this is. All of this led to the explosion of in-game advertising. 

Dispelled Myths

But not everyone was on board. Many marketers and advertisers underestimated the size of the market and its potential. Even when the revenue from in-game advertising reached $76 billion in 2020, there were still skeptics.

Some businesses were not convinced that gamers would leave consoles, with their huge capabilities, for the small screen of the smartphone. But these naysayers don't take into account the graphic capabilities and immersive gaming experience that smartphones offer with games such as slots and roulette. The whole experience is just as rewarding when you play roulette on a phone as you play it live. If you like these games, you can play them here. 

Meanwhile, mobile gaming as a market continues to grow, and in-game advertising grows with it at the same pace. So much so that many myths about this platform still befuddle advertisers. So let’s put these myths to rest here.

The first myth has to do with the user experience. Some people believe that in-game advertising intrudes on the gamer’s experience and disrupts their game. However, these ads often provide the gamer with options such as new lives or other in-game benefits. Rather than resenting it, gamers welcome advertising that allows them to continue to play the game at no extra cost.  

Another myth has to do with brand safety. Many brands are wary of the type of content some games have, especially if it’s controversial. But if that’s true of video games, which are mostly known for their penchant for violence, most games developed for Android and iOS devices are family-friendly and are on the lighter side.  

Marketers often consider gaming to be a niche market. They don’t consider it worth the trouble because of the limited size and demographic of the gamers. For some reason, they’re under the impression that gamers are mostly males. But as we mentioned before, the size and demographic of the gaming niche make it ideal for almost all brands and services. Moreover, mobile gaming seems to attract more females to it than other gaming platforms. 

Facts and Trends

With that out of the way, we can now focus on the benefits of in-game advertising for both businesses and gamers alike. From a brand’s point of view, advertising on mobile games is a lucrative business. On the one hand, the sheer size of the market is in the magnitude of billions, and it’s increasing. And since the majority of those gamers prefer free games over paid ones, that opens the door for in-game advertising on a large scale. As businesses increase their exposure and reach a large audience, the gamers get many in-game benefits when they choose to watch an ad. In short, it’s a win-win situation for everybody involved.

When handled correctly, in-game advertising can boost in-app purchases as well. For example, the video ads that the user watches to get an extra in-game life can tell the user about the benefits of upgrades and in-app purchases, and how they can improve the gaming experience and help them level up faster. Research shows that gamers are more likely than other target audiences to make spur-of-the-moment purchases, especially when they understand the value of these in-app purchases.

A rising trend in in-game advertising that offers a lot of promise to advertisers and brands has to do with blending the ad seamlessly inside of the gameplay itself. For the most part, the user will not recognize the ad unit or get distracted from their game. A good example of such ad blending is when an ad offers the gamer some free rewards in exchange for interacting with the ad. The user still has the choice to reject the offer and continue to play. But most of the time, they would accept the ad to get the extra lives or other in-game rewards.

The issue of acceptance and consent touches on a real dilemma in the advertising world. Unlike other platforms, such as TV spots or digital ads online, in-game advertising doesn’t force the user to watch the ad unit or to interact with it. This increases the favorability of the ad content a great deal and makes the user more likely to click on the ad or watch its content. Compared to YouTube ads or TV commercials that the user has to sit through patiently, in-game advertising has a better chance of lead conversion. 

With an expanding market that exceeds 2.7 billion users and the right demographic that averages 36-year-olds, in-game advertising is carving a large niche for itself in the market. It offers brand safety, more engagement, and user retention, as well as clear measurement, and high return on investment (ROI). Both game developers and advertisers stand to gain a lot more from in-game advertising without putting off the gamer or interrupting their gameplay. As for the users, they have the option to watch and interact with ad units in exchange for in-app rewards that improve their gaming experience and enjoyment of the game.