AfterDawn: News

In-game video game ad revenue to reach $1 billion in 5 years?

According to analysts at Citigroup, the in-game advertisement market should reach $1 billion USD in revenue by 2014, marking a 40 percent growth from the current market, an expected $600 million revenue for 2009.

The report states that "in-game ads have higher engagement" than traditional ads used online and that "advertisers' appetite for in-game marketing appears to be increasing."



Citi expects to see the large growth in the PC gaming space, as well as in games played online.

The report is the second in recent weeks to forecast revenue for the up-and-coming in-game advertisement market, with PricewaterhouseCooper estimating a significantly higher jump to $1.4 billion USD by 2013.

Written by: Andre Yoskowitz @ 18 Jun 2009 1:41

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• 8 comments

• DXR88

  I don't think advertising should be allowed in paid games.
  
  but when a torrent tracker generates revenue of both ads and Pay membership they should be shut down.
  
  Double Standard.

  18.6.2009 01:54 #1

• Paladore

  i absolutely love in game adds if they bring down prices of games $10-15 each. Everyone will win if this is done.

  18.6.2009 03:42 #2

• beanos66

  ...if they bring down prices of games $10-15 each.

  But it dosen't and never will. Ingame ads are seen as additional revenue

  18.6.2009 04:48 #3

• SamNz

  Originally posted by beanos66:

  ...if they bring down prices of games $10-15 each.

  But it dosen't and never will. Ingame ads are seen as additional revenueand help pay for dlc and severs etc

  18.6.2009 05:56 #4

• bam431

  I don't mind the ads as long as there on a billboard or something in the game. What more realistic then real ads in the game instead of tacky fake ones.

  18.6.2009 09:01 #5

• pridmore

  At 59 bucks a pop, video games should be totally ad-free.
  Some up-coming titles have projected sales of 11 million copies in the first two months after their launch!!!!
  
  An alternative approach would be for video games to subtly integarte advertisers' products into the games. In Fable III, the chicken tossing game could be sponsored by Kentucky Fried Chicken. Smith and Wesson in Gears of War III. Shake and Bake in Wario Ware Shake It, 2.
  There's a wealth of advertising space available on the many vehicles of the Mario Kart franchise.
  
  The characters in Halo 4 could take a pause for a cold Pepsi after a particularly gruelling exchange with the advancing hoardes.
  
  Monkey Ball opened the door. It's just a matter of time before we'll be paying big video game bucks to watch ads.
  
  Reality!!!! What a concept!

  18.6.2009 09:25 #6

• jookycola

  Yeah, the with revenue like that games should be around $45 a pop. That's a crock of sh*t! If it doesn't help the consumer then why have it at all?

  18.6.2009 11:13 #7

• bomber991

  Originally posted by Paladore: i absolutely love in game adds if they bring down prices of games $10-15 each. Everyone will win if this is done.Yes or if, they come out with updates and bug fixes to the game. Like with TF2.
  
  There's a few different kinds of ads in games. There's dynamic advertising where there's a bilboard or something that changes all the time just like banner ads on websites. There's static ads where the company pays money to have their logo on the bilboard in the game from launch. Then there's product placement. This is where Master Chief drinks a Pepsi to restore his shields.

  18.6.2009 18:59 #8