E-Marketer: Digital Ad Spending in Video Games Declining

E-Marketer: Digital Ad Spending in Video Games Declining

As subscription streaming VOD embraces ad-supported content and subscription tiers, the video game industry is trying to retain marketers to supplement revenue. New data estimates from E-Marketer found that following nearly 25% growth in ad-spending in 2023, U.S. video game ad revenue will total $8.59 billion this year, a growth of just 6.7% over 2023. Thereafter growth will begin to cool.

E-Marketer says U.S. game ad revenue won’t cross the $10 billion mark until 2026, and gaming’s share of digital ad spend is decreasing relative to subscription streaming VOD, as noted in E-Marketer’s U.S. In-Game Ad Revenues Forecast 2024 report.

Most of the in-game ad spend goes to mobile, and most of the ads are bought by game developers. Nonetheless, the research firm says advertisers should pay attention as intrinsic ads, which appear in games themselves, and programmatic ads increase and as e-sports and other forms of gaming video content take off on YouTube and Twitch.

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