Why Is Digital Ad Spend in Gaming Lagging Despite Big Audiences?

April 4, 2025
Why Is Digital Ad Spend in Gaming Lagging Despite Big Audiences?

Anastasia Braitsik, a global leader in SEO, content marketing, and data analytics, brings her extensive expertise to the digital marketing landscape, particularly within the gaming industry. In this interview, she shares insights into the evolving narrative of gaming within advertising, the unique challenges advertisers face, and the potential future of this dynamic industry.

What motivated you to focus on the gaming industry, given its current share in the total digital advertising spend?

Gaming is a fascinating intersection of technology, culture, and human behavior. I’ve always been intrigued by its ability to engage diverse audiences so deeply. Despite its current small share in the digital advertising landscape, the potential for growth is immense. The gaming industry offers a versatile platform for innovative ad strategies, and given its rapid evolution, it’s an exciting field to be involved in.

How has the narrative around advertising in gaming changed over the past decade?

Over the past decade, the narrative has shifted from skepticism to cautious optimism. Initially, advertisers were reluctant to invest in gaming due to perceived high risks and unclear returns. However, as the industry has grown, so has the understanding of its vast potential. There’s now a recognition that gaming offers unique engagement opportunities that other platforms can’t match. The challenge has been to prove this value consistently, which is slowly happening.

What is your perspective on the mismatch between the number of gamers in the US and the percentage of ad spend dedicated to gaming?

This mismatch is rooted in a combination of traditional ad spend habits and a lack of understanding of the gaming landscape’s potential. Many advertisers still view gaming as a niche market rather than a mainstream medium. However, with millions of engaged users, the reality is different. As more successful case studies emerge and technology improves, I believe we will start seeing a significant shift in ad spend towards gaming.

Can you elaborate on the barriers that advertisers face when trying to invest in gaming?

Advertisers face several barriers, including a lack of standardized measurement and a clear understanding of different gaming environments. Unlike other mediums, gaming isn’t monolithic; it encompasses diverse genres and platforms. Advertisers often struggle with understanding where their ads will be most effective and how to measure their impact properly. Additionally, there’s the challenge of creating non-intrusive ads that enhance rather than disrupt the gaming experience.

Why do you think advertisers tend to view the gaming industry as a monolith?

It’s a matter of familiarity and simplicity. Viewing the industry as a monolith simplifies decision-making but, unfortunately, glosses over the nuances that could make their campaigns more effective. The gaming audience is incredibly diverse – someone who plays solitaire casually on their phone is vastly different from a competitive Call of Duty player. Advertisers need to understand these distinctions to craft targeted and engaging campaigns.

How are the consumers of games like solitaire and Candy Crush different from those of games like Call of Duty?

Consumers of casual games like solitaire and Candy Crush are often looking for quick, easy entertainment. These users might be more receptive to casual and quick ad formats. On the other hand, Call of Duty players are typically more engaged and passionate about their gaming, often spending extended periods in gameplay. They might respond better to immersive and integrated ad experiences that don’t disrupt their focus.

What efforts are being made by the IAB to standardize and measure gaming ads effectively?

The IAB has been working diligently to create standardization in the gaming ad space. They’ve introduced new creative guidelines and updated measurement standards to provide a clearer framework for advertisers. These efforts aim to reduce the ambiguity in gaming ad investments, making it easier for advertisers to measure the effectiveness of their campaigns and justify their ad spend in gaming.

How significant are the creative guidelines and measurement standards updated by the IAB in 2022 for the gaming industry?

These updates are crucial as they provide a benchmark for advertisers to follow, leading to more consistent and reliable ad performance. By setting these standards, the IAB has helped simplify the process of creating and measuring effective game ads, making the industry more accessible to advertisers who were previously hesitant. This move is expected to drive more investment and innovation within gaming advertising.

What role do you see programmatic technology playing in the future of in-game advertising?

Programmatic technology is poised to play a significant role in the future of in-game advertising. It allows for highly targeted and efficient ad placements, reducing waste and improving ROI. As this technology evolves, it will enable advertisers to deliver more personalized and contextually relevant ads, enhancing the overall gaming experience and making in-game advertising more appealing.

What are some successful case studies that can help boost advertiser confidence in investing in gaming?

Successful case studies often highlight the creative integration of ads within games. For instance, branded events within games that enhance the player experience while promoting a product can be highly effective. Collaborations with gaming influencers who authentically incorporate products into their streams can also drive significant engagement. These examples demonstrate that well-executed gaming ads can resonate deeply with the audience and yield impressive results.

How will Google’s new partnership with Roblox impact the gaming ad landscape?

Google’s partnership with Roblox is a significant development. Roblox has a massive, highly engaged user base, and Google’s expertise in programmatic advertising can help unlock new opportunities for advertisers within the platform. This collaboration is likely to lead to more sophisticated and targeted ad experiences, setting a precedent for the integration of programmatic ads in other gaming environments.

Can you discuss the importance of immersive ads fitting seamlessly into gaming environments?

Immersive ads are crucial because they enhance the gaming experience rather than disrupt it. Seamlessly integrated ads feel like a natural part of the game, which helps maintain player engagement and increases the effectiveness of the advertisement. This approach respects the player’s experience and can lead to higher ad recall and positive brand perception.

How is Discord leveraging its user base to attract advertisers, and what are “Quests” in this context?

Discord is tapping into its highly active and loyal user base by offering unique ad formats like “Quests.” Quests are rewarded ad units where users can opt-in to complete tasks in exchange for in-game incentives. This format appeals to users’ desire for rewards and engagement, making ads more interactive and less intrusive, which can result in better ad performance and higher user satisfaction.

What are some innovative formats launched by gaming platforms to overcome the “Skip Ad” mentality?

Gaming platforms have introduced various innovative formats to address the “Skip Ad” mentality. Interactive and rewarded ads are popular, where players receive in-game rewards for engaging with ads. Another format is native advertising, where promotional content is seamlessly integrated into the game environment, making it less intrusive. These formats align more closely with players’ experiences, increasing the chances of engagement.

Why do you think companies like AppLovin, despite facing pressures, continue to spotlight mobile gaming inventory?

AppLovin and similar companies recognize the vast potential of mobile gaming. Mobile games are incredibly popular and have a broad user base, providing ample opportunities for targeted advertising. Despite challenges, the engagement levels and reach of mobile games make them an attractive inventory for advertisers looking to expand their digital advertising strategies.

How crucial are Gen Z and Gen Alpha audiences for advertisers in the gaming space?

Gen Z and Gen Alpha are critical for advertisers because they represent not just the current but also the future consumer base. These generations have grown up with digital technology and gaming as essential parts of their lives. They are highly engaged and have significant purchasing power, making them a prime target for brands looking to build long-term relationships.

What role do gaming creators play in reaching younger audiences?

Gaming creators are key influencers for younger audiences. They offer authenticity and relatability, which traditional advertising often lacks. By engaging with gaming creators, brands can tap into their loyal follower base and benefit from the trust and credibility these creators have built. This kind of partnership can significantly boost brand visibility and engagement among younger demographics.

How has the content around gaming evolved over the years?

Gaming content has evolved from simple instructional videos and reviews to complex ecosystems of live streams, in-game events, and interactive experiences. Today, it’s not unusual to see gamified content, product placements, and sponsored events within games. The evolution of gaming content mirrors the growing sophistication and popularity of the industry, offering even more avenues for innovative advertising.

Can you give examples of how brand placement has become more natural in gaming streams?

Brand placements in gaming streams often involve subtle integrations, like products being used naturally by the streamer, background placements, or sponsored segments that blend seamlessly with the content. For example, a streamer might use a particular brand of headphones while playing, or a soft drink might appear casually on their desk. These integrations make the brand a part of the streamer’s everyday routine, which can enhance relatability and brand recognition.

What are the risks connected to brand-safety in creator partnerships within the gaming industry?

Brand safety is a critical concern because gaming creators have their own unique styles and content, which may not always align with a brand’s values. There’s a risk of unpredictable behavior or controversial content that could negatively impact the brand’s image. Thorough vetting and clear communication of expectations are essential to mitigate these risks effectively.

How can brands ensure that their partnerships in the gaming creator ecosystem are safe and effective?

To ensure safe and effective partnerships, brands should conduct rigorous vetting processes, establish clear agreements, and maintain open communication with creators. It’s crucial to understand the creator’s audience, content style, and personal brand to ensure alignment with the company’s values and objectives. Ongoing monitoring and engagement can also help maintain a positive and productive partnership.

In what ways is the vetting process for gaming creators similar to influencer and celebrity partnerships?

The vetting process for gaming creators is similar in that it involves evaluating the creator’s audience demographics, content quality, brand alignment, and engagement metrics. Brands need to ensure that the creator’s values align with theirs and that their content resonates with the target audience. This process often includes reviewing past content, analyzing audience interactions, and discussing partnership terms thoroughly.

How might the rise of creator partnerships change the perception of gaming for brands?

As creator partnerships become more prevalent, brands are likely to see gaming as a viable and valuable advertising channel. These partnerships can demystify gaming for brands, showing them how to leverage this medium effectively. The authentic and engaged nature of creator-driven content can help brands connect with audiences in ways that traditional advertising cannot, potentially shifting their perception and increasing their investment in the gaming space.

What do you envision for the future of advertising in the gaming industry?

The future of advertising in the gaming industry looks bright and dynamic. As technology continues to evolve, we can expect even more innovative and immersive ad formats that enhance the gaming experience. With the continued rise of programmatic advertising and more robust measurement standards, the barriers to entry will lower, attracting more brands. Furthermore, as the integration of VR and AR becomes more seamless, the industry will unlock new, exciting opportunities for brands to engage with gamers in meaningful ways.

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