In-game advertising recovers after a downturn in 2022
Posted on 2023 May,31

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With more than 2.7 billion gamers worldwide, in-game advertising can give brands incredible reach. Over the past five years, the revenue from this form of marketing has more than doubled before seeing a downturn in 2022, the first in the market's history.

According to data presented by, in-game advertising revenues are expected to continue growing in 2023 and hit $32.5bn worldwide, 10% more than last year.


In-Game Advertising Revenues to Grow by a CAGR of 9.2% and hit $46B by 2027

In-game ads are more powerful and effective than pop-ups or banners usually seen in mobile games. They are non-interruptive, allowing players a seamless experience, and can be integrated into desktop and mobile games via commercials, cutscenes, billboards, and background displays.

Almost 70% of console gamers, 65% of PC gamers, and 74% of mobile gamers feel positive or neutral about these ads, which benefits both advertisers and game developers. Advertisers can target a highly engaged audience and reach players worldwide at a lower cost and with higher ROI. Game developers, on the other hand, can generate additional revenue streams, balance their development costs, and offer games for free or at a lower price.

According to a Statista survey, between 2017 and 2020, global in-game advertising revenues increased by 55%, jumping from $14.8bn to $22.8bn. In 2021, the entire market exploded, with revenues surging by nearly 30% year-over-year to $29.6bn worldwide. However, after impressive revenue figures driven by the explosive growth of the gaming industry and the rise of online multiplayer games, the entire market saw a downturn in 2022, with revenues falling by $160 million year-over-year.

Statista expects this to change in 2023, with in-game ads generating $3bn more in revenue than last year. The entire market is forecast to continue growing by a CAGR of 9.2% between 2023 and 2027 resulting in a market volume of more than $46bn.


Almost Half of the Total In-Game Ad Revenue Comes from China

In global comparison, China is the world`s largest and fastest-growing in-game advertising market. Chinese in-game ad revenue is expected to grow by almost 13% YoY and hit $15.6bn, or 48% of the world`s total this year. As the second-largest globally, the US market will see only half that revenue, or around $8.5bn.

Japan, the United Kingdom, and South Korea follow with $2.2bn, $685 million, and $676 million, respectively.

Statistics show the top five markets will together generate more than 85% of total in-game advertising revenue this year.