2023: The Year of In-Game Advertising
The intersection of advertising and gaming is expected to be huge in 2023 with intrinsic in-game ads at the forefront, data from Anzu suggests. With recessions looming globally, game developers are looking for reliable monetisation solutions while advertisers are reassessing their ad budgets to make the most out of their investments.
Over the past few months, experts from the gaming and advertising industries have shared their insights on the future of in-game advertising:
Metaversal Experiences to become more Commonplace: According to Itamar Benedy, the Co-Founder and CEO of Anzu, 2023 will see metaversal experiences become more common. This is due to three key factors. Firstly, the rollout of 5G networks promises increased speed and reduced latency, which will bridge the gap between physical and digital worlds. Secondly, the gaming generation, Gen Z, which identifies as 90% gamers, is driving the shift towards interactivity. Finally, the COVID pandemic has accelerated a shift towards virtual experiences and digital interactivity, making way for gaming to lead.
Gaming as a Cultural Phenomenon: According to Joost van Dreunen, a video game academic, entrepreneur, and NYU Stern professor, game developers will begin investing in better understanding gaming as a cultural phenomenon. With direct consumer spending having softened, game makers and platforms will look to monetise their audiences indirectly, building a stronger relationship with advertisers. This will lead to a broader range of audiences and facilitate novel game design.
Breakout Year for Media Spend in Gaming: Michael Reidy, Senior Vice President of Digital Ad Sales at NBCUniversal Media, predicts that 2023 will be a breakout year for media spend devoted to the gaming space. This is due to the mainstreaming of gaming in popular culture and advancements in third-party standardisation from the IAB and MRC, among others. With an increasingly broad gaming audience and tech stack maturity, marketers can be confident in investing in the gaming space.
Experimenting with Gaming:Michael Isaacs-Olaye, Business Development Lead for EMEA at IAS, predicts that 2023 will be the year for brands to experiment with gaming. Brands will test the effectiveness of the space, understand the best KPIs for measuring ROI and identify the most suitable environments and games for their marketing purposes. The groundwork laid in 2023 will inform the media strategies brands will craft for 2024 and beyond.
Overall, the future looks bright for in-game advertising. But how does one reach their audiences in game? Tune in next week for gamer profiles, and how utilise them.