MediaTel: Level up your ads: Why brands are getting into gaming

Bidstack’s Marketing Director, Vanessa Goff-Yu and CRO, Lewis Sherlock, takes a closer look with Mediatel as to why more and more brands are getting into gaming. What is it about the gaming industry that’s got advertiser’s attention? Is it the $3bn spend on in-game advertising in the US, or is it more people are watching Twitch over live TV?

In-game advertising isn’t the ad category of the future, it’s the ad category of the here and now. Brands are starting to recognise its enormous value, with over $3 billion spent on in-game advertising in the U.S. alone last year, and double-digit growth expected for this year. From Adidas and Nike to PepsiCo and Coca-Cola, brands are shifting budget to gaming, and it’s not hard to see why.

The global gaming market is already immense and is estimated to be worth around $152 billion. In the UK the sector accounts for more than half of the entire entertainment market and is more lucrative than music and video combined. Over the next five years cloud gaming services such as Google’s Stadia and Microsoft’s Project xCloud and the rollout of 5G connectivity, will increase accessibility and drive exponential growth in this market.

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