President and CEO at BreezeMaxWeb.

After experiencing a significant increase in users at the beginning of (and throughout) the pandemic, the mobile gaming industry continues to boom. Interestingly, users and game play time didn’t slow after the pandemic restrictions started to relax. If you're a mobile app developer or a brand hoping to capitalize on the increase in mobile game play, here’s a statistic you can’t miss: “Users worldwide downloaded 30% more games in the first quarter of 2021 than in the fourth quarter of 2019, and spent a record-breaking $1.7 billion per week in mobile games in Q1 2021. That figure is up 40% from pre-pandemic levels.”

Given this growing trend, advertisers are clamoring to get a piece of the pie. But two questions keep popping up: What is the best ad format for mobile games and how do small- to medium-sized businesses get in on the action?

In-Game Ads: The Best Solution For Users And Advertisers

The majority of gamers say they’d rather watch an ad than pay for a game. And once someone has downloaded and is playing, watching an in-game ad to earn an asset or unlock a new level is significantly more appealing than paying for that same asset. A recent report from Accenture showed that more than 73% of mobile gamers are open to receiving in-game ads.

This means gamers are not only open to in-game advertising experiences, they’re expecting them. And though spending on mobile in-game advertising is already in the tens of billions each year—and is predicted to grow from $42.3 billion in 2019 to $56 billion in 2024—the landscape is still in its infancy when it comes to ad solutions. Thus, it’s ripe for new ad formats and placements.

This is incredibly good news for small to medium businesses. With spending already as high as it is, it may seem like this space is more accessible for bigger brands, such as Coke, Unilever or Ford, that can afford to drop one or two billion a year. But the reality is, there is a niche for small and medium businesses, and now is the time to get involved.

For instance, consider Fortnight’s recent live musical events featuring top pop stars like Travis Scott and Ariana Grande. While those events are sponsored by the big guys, there are other in-game ad opportunities, like an in-game billboard. These types of opportunities are inexpensive compared to overall sponsorship, but a more tenable solution for smaller brands.

This is an as-yet untapped way for smaller brands to reach mass market audiences. And it’s not limited to first-person shooter games, either. Sporting arenas and racetracks have lots of advertising real estate. And these subtle billboard ads work well because it becomes part of the game. The repetitive reinforcement in the user’s mind is a proven way to instill brand equity in a non-intrusive way.

Game developers are starting to build games with this mindset—and these ad placements—in mind. The more native and inherent the ad experience, the less invasive it will feel, which benefits users and advertisers.

Since it’s unlikely a smaller brand has the budget to work directly with gaming platforms, there are a variety of in-game native ad networks that can help identify opportunities, develop creative and manage campaign execution. One thing to keep in mind: billboards need to be contextually relevant. For instance, while a Pepsi or Doritos billboard makes sense in games set in the present day, like Subway Surfers or GTA (Grand Theft Auto), it would look very odd in Games of Thrones:Beyond the Wall or Genshin Impact.

As this type of placement grows in popularity, so will the cost. With billions of mobile devices and players around the world, it won’t take long for this trend to grab hold and smaller businesses will likely be priced out. But for now, the prices are still manageable, making an in-app ad format a great way for brands to get acquainted with the mobile advertising world.

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