Video game advertising tops $1 billion

The videogame world has a long way to go to catch up with the television advertising market, but it has hit a notable milestone. For-sale

DFC Intelligence reports U.S. advertisers spent over $1 billion in 2010 on video games, a number that’s expected to double by 2014. Globally, that number hit $3.1 billion, with expectations it will reach $7.2 billion by 2014.

The numbers include a variety of advertising vehicles: in-game ads, around game ads (such as on Web-based titles) and advergames (popular online and in the app store). In-game ads are seen as the weakest of the three areas. By 2016, advergames and around game advertising will account for 78 percent of game advertising revenue.

But DFC maintains the overall spend numbers by advertisers should actually be higher, given the worldwide spend on the gaming industry, which is expected to hit $67 billion this year.

“Video games have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population,” said DFC analyst Michael Goodman. “Despite this, advertisers continue to under utilize video games as an advertising vehicle. This is slowly changing as more games go online.”

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 1

Leave a Reply

1 Comment

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

  1. Ranjith E says:

    Really..that advertiser will spend $7.2 billion at 2014.Is it benefit for the advertisers?

More Digital News from Variety

Loading