What is In-game advertising and How Does It Work?

In today’s busy digital age, capturing audience attention is a constant battle. Traditional advertising methods can feel overly pushy. Brands and companies keep bombarding consumers with messages they may not want to see. But what if there was a more engaging and memorable way to advertise to people? That’s where In-game advertising comes in. In this article, we’ll discuss in-game advertising and explore how it works.

What Is In-Game Advertising?

In-game advertising involves integrating advertising elements into gaming content. It can take different forms, such as embedded video ads, virtual billboards, brand partnerships, or product placements within the game. In-game advertising aims to reach gamers in a more targeted and personalized manner and increase the brand’s visibility.

Mobile games for iOS and Android are the most common platforms for in-game advertising. However, ads can also appear in games played on computers and consoles, such as Xbox and PlayStation.

Types of In-Game Advertising Advertising

Image by Christiana from Pixabay

In-game advertising comes in different forms, each designed to subtly integrate brands into the gaming experience. The three main forms of in-game advertising are:

Static In-Game Ads

These are the most straightforward forms of in-game advertising. Similar to traditional product placement in television and films, they are integrated into the game’s environment during the development process and are permanent once integrated.

In 1992, Chupa Chups presented their lollipops: Ninja of the Nth Dimension as the background of the game. Two years later, Panasonic and FIFA International Soccer showed their logos on banners in FIFA International Soccer.

Dynamic In-Game Ads (DIGA)

Dynamic in-game ads (DIGA) improve upon static ads. They offer interactive experiences and adapt to the player’s actions or the game’s progression, making them more engaging and potentially more effective than static ads.

Billboards and posters, which are visible in strategic places, are the most common formats. What distinguishes them from static advertising is their variability. For example, if you’re playing a game and see an ad for Coca-Cola on a billboard inside the game, the next time you see that billboard, it may display an ad for Nike.

Advertising

Gamevertising, also called advergaming, refers to a type of in-game advertising where brands create their games or heavily integrate their products and services into existing games. Branded games are games specifically designed to promote a brand or product. They can range from simple browser-based games to full-fledged console titles. For example, Red Bull’s “Bike Unchained,” a mobile stunt bike racing game, or a fast-food chain creating a puzzle game featuring their mascot.

Heavy product integration seamlessly weaves a brand’s products or services into the core gameplay or narrative of an existing game. For example, a racing game where players can choose to drive different car brands, or a sports game featuring real-life athletes sponsored by specific brands.

How Are In-Game Ads Served?

Image by Pexels from Pixabay

The in-game ad serving process depends on several factors, such as the type of ad (e.g. dynamic or static) and the environment where they’ll be displayed (in a PS4 game or inside a mobile game). Dynamic games will require an internet connection for the ads to show while static ads will be hard-coded into the game so that the ads can show as players progress through the game. Serving dynamic ads requires SDK to facilitate the ad delivery between the user’s device and the game.

A few options that can be used to measure in-game ad performance include brand-lift studies and the IAB’s OM SDK. Analyzing brand lift is the only real measurement available to brands when using static in-game ads. The reason is simply because the ads are part of the game and it functions offline so there are no analytic tools to track performance. It can also be the case for some dynamic in-game ads. However, there is still a way to measure them via the IAB’s OM SDK, which can be connected to the game.

Advantages of In-game Advertising

In-game advertising offers a unique set of advantages that make it a compelling marketing channel for businesses:

In-game advertising enables advertisers to target specific player demographics based on factors like age, gender, gaming interests, and in-game behavior.
In-game advertising can seamlessly integrate with the game world and create a more immersive and memorable brand experience compared to traditional interruptions.
Game developers and advertisers can leverage data analytics to track player engagement with ads and optimize campaigns for maximum impact.
Gamers are highly engaged while playing, making them more receptive to advertising messages within the game environment.

Challenges of In-game Advertising

Despite being an effective marketing strategy, in-game advertising has its drawbacks:

If not carefully integrated, in-game ads can be intrusive and disrupt the player’s immersion in the game world.
In-game advertising raises ethical concerns, particularly regarding targeting children and the potential for misleading or deceptive advertising practices.

In-game advertising enables brands to engage audiences in an immersive and entertaining environment. Despite its drawbacks, such as disrupting gameplay and performance measurement issues, its potential for impactful brand integration and targeted campaigns is immense and cannot be ignored. Like many other areas of AdTech, as technology evolves, we can expect to see more innovative and engaging forms of in-game advertising emerge.

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