In-game ads to top $7.2bn by 2016

Revenue from in-game advertising is expected to increase in the next few years, but are advertisers making the most of our medium?

The new Advertising and Video Games report by research firm DFC Intelligence predicts that the in-game advertising market will reach $7.2bn globally by 2016, according to IndustryGamers.

The report added that the North American in-game advertising market was worth $1bn in North America last year, and is expected to reach $2bn by 2014.

This figure also includes around-game advertising – such as banners around browser-games – and advergames, which are titles used to advertise a product, organisation or viewpoint.

However, DFC claims the full potential of this advertising channel is not being realised.

"Video games have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population," said DFC analyst and the report’s lead researcher Michael Goodman.

"Despite this, advertisers continue to under utilise video games as an advertising vehicle. This is slowly changing and more games go online.

"Video games, with their high degree of immersion and interactivity, are a natural solution for building brand awareness and influencing purchase decisions."