The report forecasts the global video games advertising market to grow at a CAGR of 13.71% during the period 2016-2020.
One of the notable trends in the global video game advertising market is the increased social media for advertising of video games. The number of social media users globally was more than 2.1 billion in 2015. With this widespread reach, social media is becoming one of the lucrative platforms for advertising as it connects to a large segment of gamers. Over 90% of social media enthusiasts play at least one video game in a period of 30 days. Social media platforms further provide the advertisers with efficient targeting options and enhanced conversion tracking since they also take advantage of the user interests.
According to the report, improved measurement standards will be a key driver for market growth. In the early 2000s, measuring the effectiveness of the video game advertisements was very complicated. The advertisers consider the type of advertisement, the number of games sold in the previous years, average time spent on the game, and the budget allocated for measuring the effectiveness of the gaming advertisement. The technique provided an estimation of its impact but never managed to give an accurate or reliable data on the effectiveness of the advertisement.
Further, the report states that pirated video games are another big challenge for video game advertisers. The in-game ads are used to connect with the gamers based on their geography. However, video games get pirated and are used in different regions. In-game advertisements have very little relevance in the other regions. The number of end-users for pirated video gaming is as high as the number of end-users for legal video game industry. Pirated games accounted for $72 billion unmonetized video game revenue in 2015.