In 2024, advertising in video games is more than just banners—it’s a part of virtual worlds. This helps developers make money and brands find new clients. In this article, we’ll explain why advertising within video games works. We’ll break down advertising formats and show examples from well-known games.
In-Game Ads: What They Are and Why They Work
In-game ads are those that gamers see while playing. These can be banners on levels, branded items, or even sponsored mini-games.
According to data from analytical company Newzoo, the number of gamers will grow to 3.42 billion in 2024, which is 4.5% more than 2023.
Source: Research from the Global Games Market Report 2024
Of this number, 1.5 billion people will actively spend money on gaming, and this figure is expected to grow to 1.67 billion by 2027.
This is an enormous audience—and one that brands aim to reach.
Why in-game advertising is so effective:
- High engagement. Players are focused on the game and best remember ads that don’t interfere with their gameplay.
- Precise targeting. Different projects attract different audiences. This allows brands to choose exactly who they want to see their ads.
- Benefits for players. Ads in video games often provide bonuses or rewards. Players perceive them as part of the game as opposed to interference.
- Creative formats. Ads can be made interesting in their own right. Picture a virtual concert from a beloved band in a game, for example.
- Market growth. According to data from Statista, the in-game advertising market will grow to $145.5 billion by 2027, with a yearly growth of 9.91%. This means that formats will develop and evolve in an even more intriguing direction.
Virtual ads are effective because instead they add to players’ gaming experience instead of souring it. Moreover, they give brands access to a huge audience that would be difficult to reach through other channels.
Static and Dynamic Ads
As of 2024, game developers use two main types of advertising: static and dynamic.
Static advertising consists of banners or images that do not change over time. They can be implemented into a game’s level designs or on objects in the environment (such as billboards or on city walls).
For their game Alan Wake (2010), the studio Remedy teamed up with battery manufacturing company Energizer. The protagonist uses a flashlight to fend off the shadow which consumes his surroundings. In the game’s storyline, batteries with the Energizer logo are scattered throughout the world. Players therefore constantly see this brand during the game.
Dynamic advertising comprises ads that can be changed depending on the time of day, region, or even the user’s actions in the game. This format affords advertisers flexibility and the ability to keep their content relevant, which is especially useful for major marketing campaigns.
In Burnout Paradise (2008), billboards were used for dynamic advertising, which changed in real time. A famous example was a banner for Barack Obama’s election campaign, which was the first integrated ad in the gaming industry linked to politics in this way.
Should You Pick Static or Dynamic?
Static advertising is best suited to projects in which changes are rare, with fixed environments and long-life cycles. In contrast, dynamic advertising is the perfect fit for projects with living worlds, constant updates, or large active player bases.
Static and dynamic advertising can also be combined in gaming. This enables you to create a natural advertising environment and at the same time flexibly customize your campaigns.
Types of Ads in Gaming
In 2024, ads in gaming have become more varied and innovative. Developers use various formats that seamlessly blend with gameplay and help brands interact with people. The main types of advertising are:
- Native advertising. Promotional elements that look like part of a game‘s world. For example, branded items or logos on characters’ clothing. This approach doesn’t distract players or hamper their immersion.
- Banners. Traditional advertising banners placed in the game interface or on virtual surfaces. They command attention with their vibrant graphics and short messages.
- Videos. Short promotional videos that players can watch to get a bonus or unlock a new level. They make it possible to convey more information to players about products or services.
- Audio. These are ads that can be heard over a virtual radio. For example, an ad for a new album played on a car’s radio in a racing game. This format doesn’t impact the visual impression of a game; instead spreading the word natively.
- Product placement. The incorporation of real brands in gaming. For instance, a character wearing Nike sneakers or drinking Red Bull for a speed boost. This way, a brand can become associated with the positive feelings provided by a game.
- Mini-game ads. Small interactive games created to promote brands. Users interact with the brand via an entertaining format as the ad forms a lasting impression.
- Sponsored content. This takes the form of special in-game events or items from sponsors. Such a format creates a sense of uniqueness, engaging players with exclusive content.
What Type and Format to Choose
The best formats for in-game ads are those that organically fit into gameplay and give players something in return. Let’s take a look at some examples:
- Rewarded video ads are among the most popular options. Players get bonuses or virtual currency for watching a short video, which makes ads useful and not irritating.
- Cross-platform video ads allow for ads to be shown on different gaming devices, from phones to consoles. This lets brands reach more people and accurately hone in on their target audience.
- Interactive ads such as mini-games or puzzles also work very well. Gaming allows users to interact with brands in an entertaining format, which casts a more positive light on the ad and makes it more memorable.
Top Examples of Ads in Gaming
Let’s take a look at a few real examples of how popular brands promote their goods and services:
- FIFA—Advertising Boards in Stadiums
In the FIFA series, dynamic advertising banners in stadiums update in real time, promoting brands such as Adidas, Coca-Cola, Wanda, Hyundai, Kia, and Visa. The banners recreate real advertising designs, which strengthens players’ feelings of being immersed in a real soccer match during their gaming session.
- Animal Crossing: New Horizons — KFC
In partnership with Nintendo, restaurant chain KFC created a virtual island in the game Animal Crossing: New Horizons. Users could visit the KFC-themed island and even win real-world chicken vouchers.
- Crazy Taxi—Ads for Pizza Hut and KFC
Crazy Taxi, a game in which players control a taxi driver, featured banners for Pizza Hut, KFC, and Levi’s. This made the game’s city realistic, and brands could become a part of its fun atmosphere.
- Naughty Dog and Subway in Uncharted 3
During the release of Uncharted 3, game development studio Naughty Dog joined forces with Subway. The game’s protagonist, Nathan Drake, finds himself caught up in customarily dangerous adventures—with Subway products in his hands.
- Monster Energy in Death Stranding
In 2019, Sony Interactive Entertainment and Monster Energy ran an advertising campaign in the video game Death Stranding. The main character could drink Monster Energy to restore his stamina. This integration drew attention to the brand in the world of gaming, sparking interest among gamers as well as fans of the drink.
- IKEA and Sims 2
The IKEA Home Stuff DLC for Sims 2 let players furnish their characters’ homes with real-life IKEA furniture. This is a great example of how brands can organically fit into gaming and showcase their products in virtual worlds.
FAQ
What are the Strengths of In-Game Advertising?
- Large reach. There are billions of gamers worldwide, which gives advertisers the opportunity to reach a variety of users.
- Engagement. Gamers spend a long time interacting with virtual worlds, so advertising can be seamlessly integrated into gaming and leave a lasting impression.
- Accuracy. Gaming attracts a variety of audiences, which allows advertisers to fine-tune their content to specific groups.
- Creativity. Gaming increases the scope for creating unusual advertising formats that are more appealing to players.
When to Pick Static vs. Dynamic
Static advertisements are a good fit for long-term campaigns and require fewer resources to implement. Dynamic ads make it possible to show current offers and update content in real time but require a more complex infrastructure.
Which Advertising Formats Work Best?
The most effective formats are the ones that organically fit into gameplay. These could be:
- Rewarded video ads. Players are awarded bonuses for clips, which makes advertisements useful.
- Interactive ads. Mini-games or puzzles where the player interacts with the brand, building up engagement.
- Native advertising. When ads become a part of the gaming experience, they come across as natural and aren’t distracting.
The golden rule for in-game advertising is not to overdo it. It should be unobtrusive and add to the game rather than detract from it. This allows you to increase profits and maintain your audience’s loyalty to the game.
