The massive consolidation, the giant deals, the explosion in blockchain gaming, billion-dollar game franchises, and the prominence of mobile gaming have all combined to make 2022 the year of video games.

But one subsector within the industry is quietly booming. This subsector, when combined with new technologies, could eventually top the industry’s leaderboard as its primary revenue engine for decades to come, and could make the money generated by billion-dollar video games, pale in comparison.

But as of right now, very few are even talking about it…

In-game advertising!

A new research report just released by Quadintel, estimates the global in-game advertising market could reach $12.2 billion by 2028, growing at a compound annual growth rate (CAGR) of 10.1% through the forecast period.

While $12.2 billion by 2028 may seem like a drop in the bucket compared to the $200+ billion valuation the video game industry already enjoys this year, one must understand that this number by Quadintel is just an estimate… and could be a very conservative one at that.


As Quadintel points out, video game advertising currently includes, among other things, “Pop-up messaging, on-screen commercials, cut-scenes, billboards, and backdrop displays… Static adverts, dynamic commercials, and advergaming…”

The report goes on to say…

Marketers may now contact customers in a brand-safe environment due to in-game advertising. As a huge number of developers sold ad space to commercialize the content, there has been a rise in the proportion of free-to-play mobile games with in-game advertising…

“With the widespread use of cell phones for gaming purposes, internet penetration has increased. The number of internet users has grown in (the) latest years. Over the past couple of years, many people have gone online for the first time each day.”

It’s all true, and the increase in internet penetration is clearly very important for growth. But what Quadintel doesn’t cover very well in its report is how new technology could allow for in-game advertising to morph into in-game commerce, or in-game eCommerce.

Here’s what we mean. Just like when the internet started, advertisers began plowing money into websites that had a good number of “page views” or traffic. At the time, there was little to no way to accurately attribute sales from those sites, and little way for consumers to safely purchase products online.

The internet was basically a large digital billboard where advertisers hoped the consumer would take notice and act; sometime later at a physical store location…

But advertisers had little way to verify if these consumers did in fact act.

Of course, all that changed when technologies like digital attribution platforms and the introduction of digital payments services like PayPal emerged.

Because of technologies like these, advertisers can now pinpoint exactly which ads are working and which aren’t, can attribute each sale precisely, and can sell products directly to the consumer in real time, as they’re online.

Internet advertising is no longer a shot in the dark. Today, the global eCommerce market is valued at over $5.5 trillion.

So, what exactly could cause the in-game advertising market to grow far bigger, far faster than the Quadintel report?

Well… technology.

Just like the introduction of new technologies to the internet allowed for the explosion of website monetization, new technologies are being developed right now that could allow for an explosion of video game monetization…

Real world, in-game commerce.

Soon, consumers may be able to click on an ad (or product) in a video game… and purchase it, just like they can on the internet. We’re talking about real goods and services here, not skins or uplevels. Meaning you could buy the same pair of shoes your avatar wears, and have them delivered to your home…

Advertisers will know precisely which games produce the best results, can market directly to consumers or specific consumer segments and are likely to flood video games with highly targeted ads. Ads that are attributable…

See, just how technology transformed the internet from a digital billboard to a direct-to-consumer behemoth… new in-game technologies offer the promise of doing the same thing for the video game industry.

And should this happen, as many expect, Quadintel’s estimate of $12.2 billion by 2028 just might look like peanuts.

Discover a patented in-game commerce technology that hopes to completely transform how video games are monetized, HERE

Or read more about the Quadintel report, HERE