Despite a massive global audience of over 3.4 billion gamers, video games are still being overlooked by advertisers. A recent report by Dentsu reveals that less than 5% of global advertising budgets are currently spent in gaming environments—highlighting a huge disconnect between audience engagement and brand investment.
Gaming Is Bigger Than Music & Film—Yet Ad Spend Remains Low
The global gaming industry generated approximately $196 billion in revenue in 2023, officially making it larger than the music and film industries combined. Yet, marketers continue to underinvest in this booming space.
In the U.S. alone, only about 3.7% of digital ad spending—around $6.7 billion—goes toward in-game advertising.
In-Game Ads Deliver Unmatched Engagement
What makes this ad spend gap even more surprising is how effective in-game advertising can be. According to the Dentsu report:
- In-game ads have near 100% viewability
- Players often give ads their full attention while gaming
- Casual mobile games are driving record engagement rates
These stats highlight the strong ROI potential for brands that do choose to advertise in gaming.
Gamers Aren’t Just Teens Anymore—They’re Luxury Buyers & Parents
Dentsu’s data shatters the stereotype that gaming is “just for kids.” Today’s gamers include:
- Adults across all age groups
- Parents
- High-income earners
- Over 50% of luxury shoppers who play mobile games
This shift means premium brands have a golden opportunity to connect with a broad and diverse audience in an interactive setting.
Publishers Are Adapting Fast
Game publishers are already optimizing for ad growth. For example:
- Unity reported a 26.7% increase in ad revenue per daily user
- Most of that growth came from casual mobile gaming, a format perfect for in-game ads
These developments show that the industry is evolving to better support advertisers and make campaigns easier to implement.
Why Are Brands Still Holding Back?
So, what’s stopping marketers from jumping in?
- Many advertisers are still unfamiliar with gaming platforms
- There’s hesitation around device fragmentation, ad formats, and measurement tools
- Marketers who didn’t grow up gaming may find the space intimidating or complex
Despite these concerns, the untapped potential is enormous—and brands that move early will reap the rewards.
Final Takeaway: It’s Time to Level Up
The gaming audience is bigger than ever, more diverse than ever, and more engaged than ever. Yet global ad budgets haven’t caught up. With unmatched reach, interactivity, and viewability, in-game advertising offers brands a chance to connect authentically with billions of players worldwide.
If you’re a marketer, 2025 is the year to level up your strategy—because gaming isn’t just entertainment anymore, it’s where your next customer is.
