Video game advertising accounted for USD 421.2 million in 2021 (17% YoY growth), with analysts projecting the in-game advertising market to reach USD 18.4 billion by 2027(at a CAGR of 19.5%). Our monthly esports scorecard, which tracks activity in the industry, has noted the strong growth in interest by non-endemic brands (brands not directly related to video gaming), reflecting the industry’s broad marketing potential. 

Despite the large potential target audience, video game advertising is still in its infancy and has lagged behind other channels in terms of ad spend. This is partly due to a reluctance shown by brands based on misconceptions about the video gaming market being too small, the target audiences being too niche, and video game content being unsafe for brands (violence and other controversial content). Meanwhile, game developers have also shown skepticism due to the negative sentiment surrounding ad monetization and its impact on the gamer experience. 

Technological developments, including improvements in the processing power of mobile phones and PCs, have helped alleviate the concerns surrounding video game advertising while opening up new avenues to it. This also includes the introduction of a new generation of AdTech technologies (developed by firms such as Anzu.io) capable of seamlessly delivering in-game ad experiences while minimizing disruption and maintaining brand safety. 

Israeli-founded Anzu.io provides an in-game programmatic advertising platform capable of delivering in-game ads directly into the gameplay and can be updated dynamically to create personalized content in a non-disruptive manner. The ads appear naturally within the game environment as 3D objects like roadside billboards, stadium banners, and on the sides of buildings, similar to out-of-home (OOH) advertising one would find in the real world. 

Anzu.io was also featured in our EDGE 100 list of rising startups.