Zoom out: PlayFronts took place as many factors push gaming further into the mainstream: pandemic-fueled shifting media consumption habits, the pending cookiepocalypse, a decline in linear TV viewership, and ad oversaturation on connected TV.
- Marketers are now challenged to cultivate customers who are not accustomed to in-game advertising just as the sector becomes increasingly important to growth.
- The value of the gaming industry has soared in recent years, and the sector has seen a number of major acquisitions, including Microsoft’s purchase of PlayFronts presenter Activision Blizzard for $70 billion.
- It’s no wonder the event was popular enough that the IAB suggested next year’s conference could run multiple days.
Willem Dinger, global director of sponsorships at Unilever, noted that gamers are spending sizable sums on digital avatars. Tapping into that spending is not only a form of opt-in advertising, but has the potential to be a not-insignificant revenue generator for CPG manufacturers like his—a “massive business opportunity,” in his words.
The big takeaway: Vendors and publishers have a generational opportunity to introduce advertising to gaming in an additive way—will they rise to it? The industry hasn’t yet defined consistent, scalable models for in-game advertising, as some PlayFronts speakers suggested.
- The exception lies with free mobile games, which are often supported with ads foisted upon users in exchange for unlocking levels and upgrades—not exactly a great experience. Mobile gaming ad revenues are expected to reach $7.87 billion in the US alone by 2024, per our forecast—but immersive advertising revenues have quite a bit of catching up to do.