Level Up: Why In-Game Advertising Is a Game-Changer for Brands

With over 3 billion gamers worldwide, video games have evolved into one of the most immersive, fast-growing entertainment ecosystems. Among them, nearly 1.75 billion play on mobile alone—making it the largest and most accessible gaming segment. And that number is only going up.

For advertisers, this presents a massive opportunity to engage highly active and diverse audiences in a way that feels organic and even enjoyable. Welcome to the world of in-game advertising—a strategy that seamlessly integrates brands into gaming experiences across mobile, console, and PC.

So how does in-game advertising work, who are you really reaching, and what are the most impactful ad formats? Let’s dive in.

What Is In-Game Advertising?

In-game advertising refers to the placement of ads inside digital games—whether that’s on a billboard in a racing game, a video intermission between levels, or a branded item a character uses.

Modern game advertising has come a long way from annoying pop-ups. Thanks to advancements in tech and design, ads are now more integrated, immersive, and player-friendly—adding value without disrupting gameplay.

Developers benefit from monetising their games, while advertisers gain access to an engaged audience—often more deeply immersed than in other digital channels.

Who Are You Reaching? The Real Gaming Audience

Forget the old stereotype of a teenage boy gaming in his bedroom. Today’s gaming audience is broad, diverse, and cross-generational.

Mobile gamers skew 55% female, according to GWI.
Millennials (ages 23–36) are the most active mobile and casual gamers.
Gen X (37–55) follows closely, while Gen Z (16–22) are just as active as Gen X in video gaming.

This means brands can connect with virtually any audience—from mums playing mobile games during commutes to e-sports fans streaming tournaments on Twitch. The reach is vast—and growing.

Types of In-Game Advertising

Just like digital and out-of-home advertising, in-game ads come in a variety of formats depending on the device and platform. The IAB UK classifies them into three main categories:

1. Blended In-Game Ads (Intrinsic)

Ads that are embedded directly into the game environment—for example, billboards, posters, or branded clothing on characters. They’re non-disruptive and often enhance realism.

2. Around-the-Game Ads

These surround the gaming experience but don’t appear within the core gameplay. Common examples include interstitial videos and rewarded ads.

3. Away-from-the-Game Ads

Ads shown through associated content like streaming, influencer marketing, or e-sports sponsorships.

Popular In-Game Ad Formats

Display Banners

Think of these as digital billboards within the game—placed on walls, race tracks, or sports arenas.

Video Banners

These short clips play in the background of gameplay, mimicking how real-world ads appear in cityscapes or stadiums.

Audio Ads

A newer but growing format. These play subtly during gameplay (especially in mobile games) without requiring visual attention.

Rewarded Ads

Players opt-in to watch an ad in exchange for in-game perks like currency or extra lives—creating a win-win scenario.

Interstitial Ads

Full-screen ads that appear between game levels or at natural pauses, capturing full attention without breaking the flow

Expandable Ads

Start collapsed and expand when the player taps or swipes. These formats usually signal high intent, as only engaged users interact.

The Benefits of In-Game Advertising

🎮 Massive, Diverse Reach

The global gaming audience is vast and spans all ages and interests, making it easy for brands to find their niche.

👁 Unmatched Viewability

Gamers are focused and engaged—often unable to skip or look away, especially during blended ad moments.

🎯 Precise Targeting

Many games attract specific audiences. Combine that with data and geotargeting, and you get razor-sharp campaign delivery.

🔁 High Engagement & Recall

Gamified environments and opt-in experiences make ads more memorable and impactful.

📊 Trackable & Transparent

From dwell time and impressions to view-through rate and gaze tracking, in-game ads provide measurable, actionable data.

🌍 Enhanced Realism

Ads that fit the context—like seeing a real brand during a virtual football match—make the game more immersive.

6 Real-World Examples of In-Game Advertising Done Right

1. Lay’s

To promote a new flavour, Lay’s partnered with Eskimi and Anzu to insert video ads into mobile games with over 100 million downloads. The campaign blended seamlessly into the game environment, enhancing visibility without disrupting play.

2. Mastercard x League of Legends

Mastercard’s branding was integrated into League of Legends tournaments via digital banners and signs. Players using Mastercard could even unlock exclusive in-game rewards—creating strong brand association and utility.

3. Starbucks x Pokémon Go

Starbucks turned 7,800 US locations into PokéStops and Gyms within Pokémon Go. Players could earn exclusive in-game items and even try a themed Frappuccino. It was a masterclass in physical-digital crossover.

4. Hot Wheels

In collaboration with Anzu, Hot Wheels displayed banner ads across racing and mobile games. The visuals showcased car models during gameplay—targeting young fans while staying non-intrusive.

5. Disney’s Pete’s Dragon

Disney used in-game ads to promote its movie across console and Steam games. By geotargeting players in Portugal, they aligned ad delivery with local movie release dates, maximising relevance.

6. Barack Obama’s 2008 Campaign

In a groundbreaking move, Obama’s campaign ran in-game banner ads in EA titles like NBA Live and Madden. It aimed to connect with young, hard-to-reach voters—a smart play in both media and politics.

Final Thoughts: Is In-Game Advertising Worth It?

Absolutely.

As gaming continues to dominate entertainment, in-game advertising offers one of the most immersive, measurable, and creative brand experiences on the market. Whether you’re after brand awareness or performance marketing, the opportunity to meet audiences where they’re most engaged is too good to ignore.

Ready to press start?

Featured