Your guide to in-game advertising: Examples, experiences, and ecosystems
May 29, 2026 9 min read 44 views
Companies and brands from around the world can become an authentic part of the gaming experience by adding in-game advertising campaigns to their advertising strategies. Compared to traditional advertising channels, in-game campaigns can reach recipients who cannot be found elsewhere and engage with audiences in ways other digital mediums can’t. Currently, it is estimated that the value of the in-game advertising market is set to reach $27.4 USD billion by 2035. This article explains how IGA works, the formats brands can use, and why it has become a substantial part of modern advertising strategies.
What is in-game advertising, and how does it work?
In-game advertising (IGA) is a type of digital advertising that displays images, video, and audio ads inside video games. Most examples of IGA are found inside mobile gaming titles for iOS and Android, but they can also appear in games played on computers and consoles such as Xbox and PlayStation.
There are three main types of in-game advertisements:
- Static ads
- Dynamic in-game ads
- Gamevertising
Static in-game ads
In the 1980s, the first static ads appeared in games. They were placed on stationary elements such as virtual billboards, posters, and banners. Once a static ad was introduced to the game, it could not be changed later. This early form of product placement laid out the groundwork for what IGA would later become.
Dynamic in-game ads (DIGA)
As technology developed, dynamic ads appeared. Their most common formats are billboards and posters visible in strategic places. What distinguishes dynamic in-game advertising from static placements is its variability. So, if you’re playing a game and see an ad for Coca-Cola on a billboard inside the game, then next time you see that same billboard, it may be displaying an ad for Subway.
Gamevertising
Gamevertising typically involves a brand creating their own video game or making their products and services a key part of the video game. But that’s not the only option. Game developers allow you to combine game mechanics with advertising formats, as in the case of Forza Horizon 4. As a racing driver, you can choose a real-life car brand, such as Ford, Dodge, Audi, and many more. This kind of sponsored game content turns the brand into a feature players actively engage with, rather than something they just see.
How are in-game ads served?
The ad-serving process for in-game ads depends on several factors, such as the type of ad (e.g., static or dynamic) and the environment in which they’ll be displayed (e.g., inside a mobile game or in a PS4 game). Static ads will typically be hardcoded into the game, whereas dynamic ads will require an active Internet connection, so that the ads can change as the players progress through the game. To serve dynamic in-game ads, there’ll likely be an SDK to facilitate the ad-serving process between the game and the user’s device, e.g., smartphone. Programmatic advertising plays a growing role here, automating placement and bidding across thousands of titles in real time.
In terms of measuring in-game ads, there are a couple of main options available — brand-lift studies and the IAB’s OM SDK.
Because many static in-game ads are part of the game, it can be very hard to determine whether a user has seen the ad, so analyzing brand lift is likely going to be the only real measurement option for brands. This can also be true for some dynamic in-game ads, but there could still be a way to measure them via the IAB’s OM SDK, which can be connected to the game (e.g., a mobile game) itself.
Benefits of in-game advertising over traditional marketing
Compared to banner ads and pop-ups, the occurrence of in-game ads is often seen as something natural. These non-intrusive, blended in-game ads have relatively high chances of being seamlessly effective.
Various ad formats
The advantage of in-game advertising is that it offers a variety of advertising options for brands to reach their target audience and drive engagement. Although many developers and publishers usually look into exploring in-game billboards and advertising boards in sporting stadiums, they represent only a fraction of the types of ad formats that can be used.
Dynamic ads update in real time, so the same billboard inside a game can show different products to different players. Audio ads play during loading screens or natural pauses, reaching gamers even when their eyes are off the screen. Rewarded video ads give players in-game currency, extra lives, or power-ups in exchange for watching a short clip, which consistently delivers high completion rates because the value exchange is clear. Interstitial ads appear at natural breakpoints, such as between levels, where they feel like a pause rather than an interruption.
Playable ads invite users to try a mini version of another game or product before they commit. And then there’s gamevertising, where a brand becomes part of the gameplay itself: a sponsored car in a racing title, a branded outfit in a virtual world, or an entire game built around the product. These native ads feel like part of the experience, not an interruption to it.
Each in-game advertising format provides several different options to help companies build and maintain brand awareness without disrupting the user experience.
Brand awareness, engagement and conversions
In-game advertising provides brands with the opportunity to test unique ad formats that are exclusive to the game environment thanks to the AdTech technology. Gaming audiences are also highly engaged. They actively focus on the screen, often for long sessions, which means ad exposure carries more weight than a passive scroll past a social feed.
Moreover, brands have the chance to reach new audiences through emerging technologies while respecting users, as 69% of gamers are open to non-disruptive in-game ads according to the recent Integral Ad Science research.
The capabilities of integrating gaming environments with AdTech technology results in a seamless and real-time gaming experience which is a perfect fit for demanding game audiences.
Although most digital advertisements, particularly display ads scattered across websites, are often viewed as a nuisance by most Internet users, it seems like there is one environment where a lot of people don’t mind seeing ads provided they match the context of the game.
Gamers feel favorably about contextual ads that are relevant to the surrounding game content, in fact, 61% of gamers would prefer to see ads related to the content of the game they are playing.
The other positive thing is that 57% gamers say that they are likely to purchase from a brand whose ads are relevant to the content of the game they are playing.
Brands knowing the numbers may consider testing in-game ads and make sure the content of the ad is suitable for the gaming environment to increase the chances of a positive outcome.
Precise targeting and measurable performance
In-game advertising gives brands a level of precision that traditional ads on TV, radio, or print rarely match. Game platforms collect rich first-party data on player behavior, preferences, genres, session length, device type, and time of day. That data lets advertisers serve the right message to the right segment at the right moment, without relying on third-party cookies that are quickly disappearing from the wider ad ecosystem.
The measurement side is just as strong. Brands can track impressions, viewability, dwell time, brand recall, and direct conversions in real time. Unlike a TV spot or an out-of-home billboard, every in-game placement leaves a clear trail of performance data. That feedback loop helps marketers test creative variations, optimize ad spend mid-campaign, and prove ROI to stakeholders with confidence.
FAQ
Final words
In-game advertising is a dynamic field. Advertisers can use tailored ad formats, such as static, dynamic, and gamevertising to increase brand awareness and increase sales. The cross-sectional nature of the platforms makes it possible to target certain gaming audiences and control the campaign over time.
If you’re interested in exploring in-game advertising further or want to see how a custom platform could work for you, feel free to get in touch.
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