40% of advertisers plan to increase spend on games advertising in 2025

According to a new report from IAB, a staggering 86% of surveyed advertisers acknowledge the growing importance of games advertising to their companies, with 40% intending to escalate their investments in this domain over the coming year.

However, amidst this surge, a subset of advertisers—10%—expresses intentions to scale back their spend on games advertising, while half of the respondents plan to maintain their current budgets. In contrast, a mere 7% of marketers foresee reducing their spending on digital video and social media marketing initiatives.

One of the key strengths of games advertising lies in its measurability, as highlighted by the report findings. A significant 85% of respondents express confidence in their ability to measure the effectiveness of games ads, with 68% leveraging consistent metrics across gaming and other advertising channels. Metrics such as ad engagement, click-through rates, conversions/sales, and brand lift or other surveys feature prominently in gauging the impact of gaming campaigns, underscoring the channel’s robust measurability.

Moreover, games advertising has transcended its experimental phase for many marketers, with 35% allocating dedicated budgets specifically for gaming promotions. Notably, only 9% rely on research and development or experimental budgets to fund gaming advertising endeavors. Funding for games advertising predominantly originates from general media budgets (33%) and device-specific allocations (23%). Furthermore, the report reveals a prevailing trend of sustained investment in gaming advertising, with 78% of advertisers opting for continuous presence throughout the year rather than sporadic activations.

The uptick in advertising spend aligns with gaming’s growing prominence and prevalence in the United States. According to data from the Entertainment Software Association (ESA), the country boasts a staggering 213 million gamers. Moreover, projections from eMarketer forecast a substantial surge in ad spend within the gaming sector, with expenditures expected to soar from $8.53 billion in 2024 to $11.49 billion by 2027.