In-Game Ads: Next Big Thing in Marketing

Date of published: December 04, 2024

Why Gaming Is the Next Big Thing in Marketing

The future of gaming marketing depends on 641.1 million people! That is the expected global esports audience in 2025, which is 5% more than in 2024 if we look at an annual rate. Such a figure screams to brands - gaming marketing and marketing in cybersports can skyrocket your brand awareness.

In this article we'll see why gaming marketing becomes a crucial instrument for your marketing strategy and how Entyx can further expose your brand to the eSports industry. 

From Hobby to Global Phenomenon

Like every successful business the gaming industry started with an idea, interest, and passion. Back then it was an engaging entertainment - just a hobby that used to be even hidden. However, in the last decade, cybersport developed into a massive cultural phenomenon that unites millions of people all over the world.

Numbers speak better than words, so here's a brief intro to the financial profit from gaming industry in progressive parts of the world:

  • United States

In 2025, the U.S. eSports market is projected to continue its dynamic growth, with revenue expected to reach approximately $1.595 million, up from $1.07 million in 2024. By 2029 the market is anticipated to grow at a CAGR of 15.4%, driven primarily by the eSports betting segment.
By 2029 the number of users is expected to reach 72.5 million. The average revenue per user (ARPU) is expected to be $20.32.

  • Canada

The Canadian eSports market is projected to grow at a CAGR of 5.92%, reaching $185.2 million by 2029. The country is carving out its niche with a rapidly expanding user base, expected to hit 15.2 million by 2029. Number of users is forecasted to rise from 32.3% in 2024 to 37.4%, with an ARPU of $10.98.

  • Europe

In 2024 Europe's eSports market is experiencing strong growth, with projected revenues of approximately $1.44 million. The market's expansion is driven by diverse revenue streams, including sponsorships, media rights, and particularly esports betting, which holds the largest share at $923.5 million.

  • South Korea

The eSports market is projected to generate $297.2 million in revenue in 2024, with a CAGR of 6.68% expected to drive growth to $410.6 million by 2029. By 2029 the user base is anticipated to reach 12.2 million and an ARPU of $29.19.

  • China

In 2024 esports revenues are projected to reach $497.6 million, with a CAGR of 4.61% pushing the market to $623.5 million by 2029. Sponsorship and advertising dominate the revenue streams, while the user base is expected to grow to 245.6 million by 2029.

Data source: statista.com

The gaming industry growth is a significant opportunity for brands to communicate closely with an audience aged 18-34 who typically prefer online streaming platforms like YouTube and Twitch over watching television and dedicate their attention to the newest mobile games, Xbox and PlayStation, PC, rather than surfing Facebook. Advertisers cannot access this audience through regular channels like Instagram, X, and TikTok, so they should rush to embark on this eSports spaceship right now before it goes too far in the unreachable space.

How Brands Can Leverage Gaming

The central part of our society falls in the category of regular and easy-to-reach ad consumers on social media; therefore, advertisers are focused on this group. But the gaming niche is worth your attention even more because then advertisers land in a whole new world.

Gaming niches give advertisers a new way to attract young audiences by using innovative and psychological marketing executions. Let's take a closer look:

In-Game Ads That Don't Feel Like Ads

In-game advertising is based on a dynamic campaign methodology focused on placing ads naturally and seamlessly, keeping users engaged without distractions from video games.

Native gaming ads increase the audience's interest and trust because this type of advertising doesn't involve negative emotions like random ads that block the screen during a game. When an ad doesn't distract users from their activities, it boosts engagement through the uninterrupted feeling of joy, fun, curiosity, and aesthetic pleasure, seeing that ads don't damage visual interface users like in their favorite games. Native ads blend in well and appear to be part of the game world. Players don't just see ads but can interact with them in the game context.

In-game ads include Display Ads, Sponsorships, Product Placement, Video Ads, Rewarded Ads, Interactive Ads, Augmented Reality (AR) Ads, and In-App Purchases Ads. Each format is developed to interact with a user in various ways while maintaining a seamless gaming experience. However, we will discuss these formats in the next articles.

Esports Sponsorships: A Direct Line to Loyal Fans

The global cybersport counts approximately 611 million gaming fans, including 302 million main viewers and 309 million accidental viewers. These numbers mean that if a brand chooses to sponsor at least one team regularly, this will work well to increase its brand visibility, the cybersport audience's trust and loyalty. We see it as a pure psychological trick - the audience witnesses your logos flash before fans' eyes on players' equipment and tournament banners, and then the audience gets used to it, which builds a strong association between the brand and their favorite players or events in their consciousness.

So partnering with at least one team buys advertisers massive exposure during any event, from tournament to streaming, because viewers will perceive such an ad as a natural part of their passion rather than an intrusive one. This way the sponsor brand gets additional points from the audience. Sponsorships significantly help to build brand loyalty among viewers, who are more likely to trust brands that support their interests and passions.

Gaming Influencers: Authentic Connections with Players

Think of somebody more connected to the audience than any gaming influencer. Streamers drive audience engagement and direct their attention to the brands they genuinely like, use, recommend for free, or gladly talk about those advertisers who reached out to them for collaborations. The bond of gaming influencers with their audience is an important asset in marketing. Luckily, advertisers can rent this special connection for some time.

Streamer collaborations allow brands to engage a whole new client portrait, much younger generations, and unlock new ways of revenue through genuine connection with an audience in their emotional moments. Each gaming influencer is like a commander who has an authentic connection with their loyal "regiment" and leads it to a safe space while raving fans witness this process in real time. As an advertiser, your goal should be to become that “safe and trusted space” — whether through a must-have energy drink or stylish merchandise that resonates with the audience and leaves a lasting impression after the collaboration.

Virtual Items: Branding Through Gameplay

Think of branded virtual items, such as when a Stalker 2 player runs into a building and sees a Non Stop limited edition aluminum can on a table that perfectly suits the interior. Such an ad doesn't distract players from the game, does not block the view (so it doesn't irritate), and simultaneously, as players are surprised to see the famous logo, it makes a positive and memorable impact on their attitude towards the brand. 

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In the same way such interactive marketing works for equipment that the player can use and branded cars or even weapons. And how cool is it to see branded billboards in stadiums or along streets while competing against your rivals in sports games?

Fortnite is a very bright example of the gamification of famous brands’ items. In 2021 Moncler created in-game apparel for Fortnite: down jackets, as well as hats, goggles, and umbrellas.

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In the same year Balenciaga partnered with Fortnite in both the virtual and physical worlds. Fans could buy online items that look like the brand's sneakers, backpacks, and four skins during their game session and then, in the physical world, get those items from the game: co-branded pants, shirts, shirts, hoodies, jackets, and caps. 

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In 2024 Fortnite made it possible to customize shoes in the game, so fans enjoy combining new models of Nike shoes with more than 500 Fortnite skins for the price of 800 to 1000 V-Bucks (Fortnite's in-game currency). Developers promised to increase compatibility to 95% of skins by 2025 (spring time).

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Challenges and How to Overcome Them

The gaming industry is no exception when it comes to marketing challenges. The problematic part for advertisers is finding out how to adapt to a new audience, avoiding measuring media value and ROI manually, and tracking whether or not the high price of collaboration is worth it. All these challenges don't have to block their authentic branding, and each partnership should uniquely represent the brand's identity for each new audience. The reason is simple: streamers are unique as personalities, and their audiences are unique too. So advertisers and influencers should find the right key to their audience together so the messaging that advertiser shares would be accessible and clear to the influencer's audience.

Entyx takes gaming marketing to the next level with advanced AI tools that identify logos and branded content in videos, including live streams and recorded gameplay. This technology allows advertisers to track their brand’s visibility during gaming broadcasts on platforms like Twitch, YouTube, and TikTok. By providing real-time insights and seamless campaign management through a unified dashboard, Entyx helps brands measure their impact and elevate their presence in the gaming world.

Gaming as a Marketing Game Changer

The future of marketing, without any doubt, includes the gaming industry. As you can see, innovative advertising is part of virtual worlds where brands can promote their items in a whole new way. New formats of collaborations, eSports sponsorships, in-game ads, and rapidly growing tech-savvy young audiences create a massive field of opportunities for advertisers. Currently we are witnessing the heyday of the gaming industry, we see trends that shape the future of gaming marketing. However one thing remains stable - ads foster trust and loyalty and feel part of the gaming world.

We urge you to explore the gaming industry as your new advertising channel to be one step ahead of your competitors. And Entyx will gladly guide you through innovative esports marketing executions. 

Join us to try new advertising formats!