Report: In-Game Ad Growth Skews Towards Web-Based Games

Despite a number of advertising firms pledging support for in-game ads in recent years, a new report suggests browser-based game ad revenue is going to continue to further outpace ads in full-scale console and PC games. According to eMarketer data published by Adweek, 2008 revenues for web-based game ads were $286 million, or 71 percent of the overall market, compared $117 million, or 29 percent, for console and PC games. Companies like IGA Worldwide, Double Fusion, and the Microsoft-owned Massive Incorporated are among those that provide console and PC in-game advertising. Despite the early fanfare, news surrounding that segment has slowed. This year, the split between the two segments is expected to shift to 72 percent ($319 million) for web and 28 percent ($124 million) for console and PC, and by 2013 to 75 percent ($511 million) and 25 percent ($170 million) respectively. While that delta increase does not appear to be overwhelming, looking at each segment individually shows the disparity in growth. Overall, console and PC game ad revenue is expected to increase 45 percent from 2008 to 2013, while web-based game ad revenue is expected to increase 79 percent from an already-higher starting point. Challenges for console and PC in-game ads include difficulties in integrating advertising into a full-scale fictional world, backlash from an often-vocal consumer public, and a less direct connection to a web browser for referalls; these issues are much less relevant to browser-based games. Combined, the game ad market is projected to grow 69 percent during that period to $681 million.