ScreenDigest: In-game ads to reach $1 billion by 2014

And the controversy continues. There are those in favor of in-game advertising - including consumers - and those who poo-poo the idea of billboarding a brand at a time when the consumer is engaged with a game and not an ad. But a new forecast for in-game advertising indicates that, even if marketers aren't in favor of in-game ads, the market will skyrocket over the next four years.

by Kristina Knight

Why the large increase? According to the report, marketers, even those naysayers, will hop on board with in-game advertising because of the growing audience base. Comparatively speaking, in 2009 in-game ads are expected to reach just under $100 million. By 2014, researchers believe this will jump to just over $1 billion

Screen Digest Senior Analyst for Advertising, Vincent Letang, said "Dynamic in-game advertising offers brands the same accountability as other digital platforms but in a more controlled environment than social display media and through a more standardized value chain than mobile advertising. Like online video pre-rolls, in-game advertising fills a gap in online branding, bringing familiar formats such as virtual billboards and TV ads into the gaming experience."

According to a recent comScore report online gaming grew 27% from December 2007 to December 2008; much of this growth is attributed to the tight economy and consumers' need to find cheap entertainment. Because most online games are free, this makes sense. It further underlines the possibility and profitability of game advertising because with more consumers playing, there are potentially more consumers engaging with the ads in-game.

"Games are proven recession-beaters with an ad-funded online model that actually works," said Adam Smith, Futures Director at GroupM. "There are many ways in which advertising can help evolve business models for video games and we have only just begun to explore that potential. Given gaming is now a mainstream leisure interest, in-game deserves the same consideration as mobile and social media."

GroupM and ScreenDigest partnered for the study.

Tags: comScore Media Metrix, GroupM, in-game advertising, online advertising, online gaming, ScreenDigest