ContactThe long-term viability of in-game advertising, which we define as brands promoting their products or services across a network of video games, depends on game developers resisting commoditisation and finding smart, uniform ways to stand out from the crowd.
In the past week, across various events and expositions, the gaming industry has showcased more than 160 upcoming PC and console titles. It's clear that video games form a booming but oversupplied market, and, against tightening economic conditions, one of the biggest questions facing game developers is what the optimum model for content monetisation should be.
Despite millions of playing hours and billions of unsold ad impressions, a volume that, by some estimates, rivals connected TV supply, PC and console video games remain largely under-monetised compared to mobile games. However, while audiences and formats differ, the appetite for advertising monetisation is clearly converging across devices. EA is said to be testing ads inside flagship titles. Buying audiences programmatically inside Roblox, a gaming environment with 88 million daily active users, is already possible through a partnership with Google. Having acquired Activision Blizzard, Microsoft is widely expected to integrate advertising across its portfolio.
Currently, in-game ad companies like Bidstack work with developers to deliver bespoke, hard-coded ad placements inside PC and console titles. As those developers turn to programmatic, addressable advertising, there's a risk that the high value of standout titles will be diluted by an overwhelming volume of lower-quality games. Rather than letting all gaming media become interchangeable, top-tier developers must actively position themselves beyond the competition, and that holds true for top-tier mobile games also.
For in-game advertising to thrive, the industry needs a framework that protects and monetises quality media accordingly. That means moving beyond a one-size-fits-all model and embracing a tiered structure that reflects fundamental differences in production value, audience engagement, and monetisation maturity.
In the hypothetical top tier sits a curated assortment of premium studios offering PC, console, and mobile titles with globally recognised IP, cinematic gameplay, and loyal fan communities. Their strength lies in protecting their IP by retrofitting the advertising experience and value exchange to build on existing trust with their player base. Supporting this is ad tech purpose-built for developer-controlled environments, meaning flexible solutions that enable game developers to implement advertising monetisation in real-time, on a sliding scale, without compromising the playing experience.
By definition, the top tier is an exclusive, small pool, which leaves a large and important cohort of long-tail, second-tier video games. Tier 2 represents the scalable open marketplace, home to the remaining majority of game developers who operate at sufficient scale but lack the IP and data required to attract direct brand investment. Here, ad tech has another role to play, enabling sustained monetisation by aggregating impressions and prioritising run-of-network media buys.
Game developers can unlock sustainable monetisation by operating in a framework that qualifies the distinct characteristics of their games. Tier 1 developers can offer premium, brand-safe environments that attract direct brand deals. Tier 2 developers benefit from programmatic media buying as a node in the network. A tiered system would provide greater clarity for buyers entering the space and building media plans. For the fledgling in-game advertising industry, it would mark a strategic reset and lay a stable foundation for long-term sustainability.
A tiered system also lays the groundwork for the emergence of in-game commerce, which we define as the application of in-game and in-menu placements to drive mid or post-play conversions. When properly segmented, every video game, whether a cinematic blockbuster or a niche mobile title, becomes a candidate for point-of-sale-led activations.
