There is a rapid expansion in the gaming industry, and smartphones play a significant role in this growth. Late 2019 saw the global gaming market reach an estimated $152 billion, of which 45 percent came from mobile games. The gaming world is expected to experience a 14 percent CAGR in 2020-2025. So naturally, it makes sense to look into advertising on mobile games. 

mobile games

Mobile in-game advertising is the placement of ads within mobile games. Well-performing ads deliver the highest CPMs and improve engagement and retention rates. Mobile gaming ads are essential in reaching a wide audience because statistics show that mobile gamers play more than 10 hours weekly.

Additionally, 57 percent are now playing more mobile games than they did five years back, with the biggest increase among parents (68 percent). Mobile gaming apps offer an unparalleled ad experience, making them an ideal opportunity for advertisers. To understand the potential of this platform, here are the top reasons you should advertise in mobile gaming apps. 

Video game popularity on mobile devices

Around the U.S. and worldwide, the gaming world has gained massive popularity over time. Globally, around 2.5 billion people play mobile games. The audience is easily accessible through advertising. Some games make money through in-app purchases and subscriptions, many mobile games are free to play and display some advertising. 

Reach new audiences far and wide

The gaming world has transformed, so marketers no longer focus on targeting young male teenage gamers. There has been a gender shift in mobile game audiences whereby 51 percent  of females are more into video games than 49 percent of males. Therefore, advertisers can now use gaming apps as a diversified marketing channel because mobile game adoption continues to accelerate to all age groups. Although the demographic data leans towards a younger audience, two-thirds of internet users between 55 to 64 years play video games, which continues to grow by the day. 

Track your ads and ROI

In-game ads focus on user interaction and direct engagement. Therefore, it is easier for ad originators to track key metrics like engagement, ad reach, and ad-watching completion rate. Through tracking, brands can engage their consumers through targeted promotional campaigns that incur lower expenses and generate higher ROI. Brands should therefore recognize the importance of meaningful in-game interactions appropriate to the game’s unique context and focus on opportunities to enhance human connection and grow creativity.

Increase in in-app purchases

Besides having a proper mobile game strategy, in-game ads boost in-app purchases. Ad units that are part of your in-game economy- the rewarded video ads- allow users to test in-app purchases (IAPs) and consequently show them the value of in-game goods, making them more likely to purchase.

Large brands place ads on mobile gaming apps 

Today the largest  automotive brands like Gran Turismo and Ford are running ads inside gaming apps like Forza and attaining great results from campaigns. Advertisers can be sure they are using a tested advertising channel with proven benchmarks. In fact, 53 percent of agencies and brands said they plan to increase their spending on mobile gaming from now on. These brands and agencies said they would likely increase mobile game spending more than entertainment, lifestyle, or any other mobile content category. 

Increase engagement and retention

Mobile gaming ads are a retention tool that rewards users to encourage them to return. These ads also boost engagement by prompting users to engage with rewarded ad units. For example, when they view the ads, they get a certain number of coins they need to continue playing the game.

Multiple ad formats

Gaming apps have a variety of creative ad formats that advertisers can choose from. Below are some top choices of ad formats:

  • Banner ads: These ad units will frequently appear at the top or bottom of the screen. They are available on multiple apps and are an ideal option for reaching a mass audience
  • Interstitial ads are ad units that take up a third or the entire screen, making them a unit to capture user attention. These ad units appear when the user is transitioning between levels or during a natural game break because they don’t interrupt the game’s natural flow. These ads are, therefore, not considered disruptive by gamers. Such an aspect makes them a great choice in driving brand recognition and awareness with gaming audiences
  • Rewarded ad units: These ad units give in-game rewards to gamers. For example, the gamer can get extra lives to complete a level, additional points, or bonuses after watching an ad. Since the gamers get a reward for watching the ads, these ad units are generally well received by end users. As a result, this ad unit increases user engagement.
  • Native in-game ads: These ad units easily blend seamlessly in the gaming environment. For example, if the mobile video game occurs in a city setting, the dynamic ads will appear on billboards in the game or on the side of buses as users continue playing. Native in-game ads are safe for your brand and ideal for meeting top-of-funnel brand metrics. 

Final Thoughts

The gaming world keeps expanding, and it is clear that gaming platforms are opening doors for brands and advertisers to tap into previously unreachable audiences. Marketers and advertisers have to harness multiple marketing strategies and tools to create lavish gaming experiences based on the user’s needs. Consider doing advertisements through mobile gaming apps and experience positive business growth as a small business or a growing established entity.