The (not so) secret affair between ads and gaming industry

The (not so) secret affair between ads and gaming industry


Mobile gaming is being driven by emerging business models including freemium and advertisements inside games; and the development of mobile platforms that allow developers to sell directly to consumers and build communities. By 2016, the mobile gaming segment is expected to account for 27.8% of the global gaming industry revenues, that is approx. $23.9 billion. Major drivers of the expected expansion are the explosion of mobile devices in terms of number of units and a rapidly growing in-game advertising market. Such new form of advertisements has proved to be effective promoting brands and engaging the customers through deals or promotions.

Newzoo, 2013 Global Games Market Report

Source: Newzoo, 2013 Global Games Market Report

The Mobile Gaming Industry

Today, mobile gaming is being driven by (i) emerging business models including freemium and advertisements inside games; (ii) powerful technological advances in all mobile devices; and (iii) the development of mobile platforms that allow developers to sell directly to consumers and build communities.

In 2013, the mobile games segment generated $12.3 billion, that is 17.4% of all global game revenues. By 2016, it is expected to account for 27.8% of revenues, equal to $23.9 billion.

Major drivers of the expected expansion are (i) the explosion of mobile devices in terms of number of units, with their advanced technological capabilities and attractive user experience; (ii) alternative revenue models, like freemium; and (iii) a rapidly growing in-game advertising market including banner and video advertisements as well as brand sponsorships.

Newzoo, 2013 Global Games Market Report

Source: Newzoo, 2013 Global Games Market Report

The market is not evenly distributed worldwide. The Asia-Pacific region is leading generating 48% of the global revenue, though with a much higher number of players if compared with the second region, North America. Western Europe shows the highest potential with 63% year on year expected growth.

The Mobile Gaming Industry in Germany

Germany is Europe’s largest games market in terms of revenues generated. 39.8 million gamers play preferably social games followed by desktop and smartphone gaming. In 2010, the German gaming market accounted for €1.8 billion.

Newzoo, 2013 Global Games Market Report

Source: Newzoo, 2013 Global Games Market Report

 

The revenue is generated by the sale of games data carriers and downloads, fees for online and browser games, as well as by the sale of virtual goods, which enhance the gaming experience.

Germany has become one of the global hubs for online and browser game production thanks to local companies such as BigPoint, Gameforge and Wooga. Gaming hubs are prospering in major metropolitan areas (e.g. Berlin, Hamburg and the Rhine-Ruhr area).

The Mobile Ads Industry

By 2015, the number of handheld devices (smartphones and tablets) is expected to grow to 1.5 billion units overtaking laptops and PCs. Still, just 1% of spend is committed to mobile marketing globally. However, the trend is changing and mobile advertisements spend is expected to grow threefold by 2015 reaching $18.6 billion.

Super monitoring, State of mobile 2013

Source: Super monitoring, State of mobile 2013

Mobile advertisements have three to four times the impact an online ones. Still, attitudes towards them are not yet favorable compared to more traditional media. Nevertheless, mobile advertisements have proved to be effective promoting brands and engaging the customers through deals or promotions.

What is going to be the future of the ads and gaming industries? Is the affair going to become engagement?

The following two tabs change content below.
World citizen, traveller, ideator, interested in startups, entrepreneur building

Comments

comments

+ There are no comments

Add yours