In-game advertising grew over 9% in 2021, led by the Asia-Pacific, according to a report from Technavio.
The report notes that Asia-Pacific is the largest market for in-game advertising. The increase in penetration of Internet connections along with the increase in smartphone users is fueling much of the growth.
The growing competition in the market is prompting vendors to adopt promotional activities and spending on ads to improve the visibility of their services.
The report notes that Asia-Pacific will contribute 34% of the global market growth and is expected to dominate the market through 2025. China and Japan are the key markets for in-game advertising in the region. The smartphone penetration was 60-65 percent in 2019.
By 2025, the number of gamers will surpass 2.4 billion users, according to the report. The report cites ad-blocking technologies as a major challenge to growth.
Some analysts attribute some of the growth to the pandemic.