Game Advertising Grosses Over $2B in 2012
Research and analyst firm Parks Associates have put out a report entitled, “Electronic Gaming in the Digital Home: Game Advertising,” which predicts that advertising in games will grow from $370 million last year to over $2 billion by the year 2012.
The compound annual growth rate is estimated at 33% which is higher than most other forms of digital media. Currently mobile is the unprecedented behemoth with a realized 100% growth rate in 2007 after an increase last year of 80% as reported in Jack Meyers Media Business Report.
U.S. ad expenditures per gamer household came in below 50 cents in 2006, compared with $37 for broadcast television according to Michael Cai, director of broadband and gaming for Parks Associates and the lead analyst of the report. He said, “The potential I definitely there. If the industry does the right thing, if they collaborate with each other instead of throwing dirt on each other, we definitely have a good story to tell.”
The biggest portion of game-based advertising is attributed to display ads and advergames on Web-based gaming portals. Those components along with smaller areas of virtual worlds marketing and sponsored game tournaments and gaming sessions have accounted for $315 million of the $370 million in ad spending on games in 2006.
In-game ad placements, both dynamic and static brought in about $55 million, which Parks Associates expects to grow to $805 million or 40% over the next six years. Simultaneously dynamic in-game ad serving in PC, console, mobile and casual games will grow from 27% of the in-game market to 84% in 2012.
Cai approximates that marketers spent $15 million on virtual worlds marketing projects last year, which doesn’t include branded virtual worlds efforts.
Parks Associates interviewed 25 companies in in-game ad space for the report and incorporated resulting data with industry predictions and the firm’s own survey data from consumers.
Reader Comments.
check out this article on in-game advertising (video gaming)
Leave a Comment
Article Sponsor
More News
Spotlight
Trust Me – I’m a Professional … SEOADOTAS — At WebMetro we typically provide SEO Action Plans as part of campaigns. As the name implies, an SEO [...] more...
-
Loading ...
Features
- Automakers Need to Become Better Conversationalists July 2nd 2009
- Affiliates can win in the media buy game July 2nd 2009
- Crowd-Sourced Ads: A Measured Response June 28th 2009
- Is the government coming for you? June 28th 2009
- Customer Loyalty: How to Earn It June 25th 2009
Latest News
- Readers weigh in on ATT, ad networks and the iPhone July 2nd 2009 ADOTAS — In our weekly poll, readers overwhelmingly said that [...] more »
- Hiring, promotions, location, partnerships and product news July 2nd 2009 ADOTAS — Internet Oldtimers Foundation, Jumptap, eXelate, Kampyle, The Digital [...] more »
- OPA large ad units unfurl across the web July 1st 2009 ADOTAS — The Online Publishers Association said a group of [...] more »
- Email spam in June worst since 2007 July 1st 2009 ADOTAS — MessageLabs Intelligence released its numbers for June, and [...] more »
- Joost becomes YouTube roadkill, starts layoffs July 1st 2009 ADOTAS — Despite reworking its technology to work in a [...] more »
- Ad networks, not websites, choked on Michael Jackson news July 1st 2009 ADOTAS — The news of the pop star’s death saw [...] more »
- StrongMail doubling down on social media, buys PopularMedia July 1st 2009 ADOTAS — StrongMail has announced that it acquired PopularMedia, a [...] more »
Reader Favorites
Layoff Tracker
- AOL - 700
- Apple - 50
- Clear Channel - 2,800 total (1,000 currently)
- Google - 340
- IBM - more than 7,800
- Joost - about 90
- MySpace - in June, about 720
- World Avenue - 30 percent of workforce
- Yahoo - 2,220 total, about 700 currently
- Zango - closes, about 90, in addition to earlier layoffs
Classifieds
Recent Comments
- Josette Davids: Great article and an amazing time was had by all at this event. I'm an
- Mike Poserina: There is also a tragic flaw rumored in Bing's ad placement engine. When resolved,
- Andy: Erin, Never mind the commenters who can only see the negative side of things. I thank you
- pkohler: We've also noticed that ads frequently adversely affects the performance of a Web page. As
