In-game advertising is a revolutionary force that's redefining how brands connect with consumers. With an expansive audience of over 12.3 million gamers in Canada (30% of the country’s population), this innovative advertising platform offers unparalleled opportunities for brands to boost awareness and drive revenue growth. So, let's unpack why In-Game Ads are a crucial strategy for brands.
Unmatched Engagement and Attention:
Brands want consumer attention and in a saturated digital ad market, this is not easy to come by. At least not in the traditional digital ad channels.
Enter gaming: A digital channel where brands are getting unmatched attention and engagement within the immersive nature of video games. Capturing the undivided attention of players, a stark contrast to the fragmented attention seen in other digital media. This deep engagement means that in-game ads are more likely to be noticed and remembered, leading to higher brand recall and impact.
Reaching a Diverse and Expansive Audience:
Now, let's pause for a second to address the question you're all asking: What is the connection between my brand and gaming audiences?
The answer is: Gaming enables all brands to reach a diverse and expansive audience. Today, smart phones are an extension of every single Canadian. And these mobile devices are expecting a significant growth in mobile gamers to reach 14.1 million by 2028, with a penetration rate increasing to 35.1% in Canada. This growth reflects the expansive and diverse audience available to brands just on mobile alone.
The reality is that gaming transcends age, gender, and geographical boundaries, encompassing a diverse range of user demographics, showing a balanced distribution across various age groups and genders, with 47% aged 18-34, 46% aged 35-54 with an almost equal split between genders.
This breadth offers brands the chance to reach a wide array of audiences, including those that are harder to engage through traditional media channels.
Leveraging High-Engagement Moments:
The in-game advertising opportunity also places brands directly into the entertainment and leisure moments of consumers. These high-engagement scenarios provide a unique opportunity for brands to interact with consumers when they are most receptive and relaxed.
Tapping into New Consumer Behaviours:
The increasing user penetration rate, from 31.5% in 2024 to 35.1% by 2028, showcases a shift in consumer behaviour towards mobile gaming. This shift creates a fertile ground for in-game advertising, offering a novel way to reach consumers who are increasingly turning to digital entertainment. As media consumption habits evolve, with audiences often multitasking across different platforms, in-game advertising becomes a strategic way to capture the attention of users who are increasingly resistant to traditional advertising formats.
Enhancing Brand Perception with Innovative Ad Formats:
The creative and interactive nature of in-game ads, such as dynamic placements and interactive elements, offers a fresh and engaging way for brands to present themselves. One of the most in-demand ad formats is Rewarded Video which are optional advertisements that users can watch in exchange for in-game rewards like currency or items. Another engaging ad format is to advertise in the metaverse using 3D characters and banners/billboards. One of the most non-intrusive ad formats across media channels (online as well as offline) is in-game audio advertising. So, what is the bottom line here? It all boils down to how it impacts brand awareness and revenue growth. After all, ROI is king.
Building Brand Awareness in a Captive Environment:
The captive gaming environment allows brands to build significant awareness. The interactive and immersive nature of games means that ads can become a seamless part of the user's experience, leading to higher levels of brand recognition and recall.
Driving Revenue with Targeted, Contextual Advertising:
In-game advertising provides the ability to deliver targeted and contextual ads, increasing their relevance and effectiveness. This targeted approach, combined with the interactive nature of gaming, can lead to higher conversion rates and, consequently, revenue growth.
Creating Positive Brand Associations:
By integrating ads in a non-intrusive and contextually relevant way, brands can create positive associations with their audience. This enhances the overall perception of the brand, leading to long-term customer loyalty and increased lifetime value.
Exploiting Cross-Platform Engagement:
With the rise of multi-platform gaming, brands have the opportunity to engage with users across various devices, further increasing the reach and impact of their advertising campaigns.
Measuring Effectiveness with Advanced Analytics:
The digital nature of in-game advertising allows for precise tracking and analytics. Brands can measure the effectiveness of their campaigns in real-time, gaining valuable insights into consumer behaviour and preferences, which can be leveraged for future marketing strategies.
An Evolving Era in Marketing
At AGN we understand exactly how in-game advertising plays a powerful role in the arsenal of modern marketers. Its ability to engage a diverse and extensive audience in a highly immersive environment makes it an essential strategy for brands looking to grow awareness and drive revenue.
And that is where our services come into play, to connect brands with gamers through memorable ad experiences that get noticed across premium game titles.
Jal Sonpal is a Marketing Specialist at AGN with a Masters of Marketing from the Schulich School of Business in Toronto.