Effects of in-game advertising on the world economy

Baltezarević, Radoslav and Baltezarević, Ivana (2024) Effects of in-game advertising on the world economy. In: 4th International Cankaya Scientific Studies Congress. IKSAD Publications, pp. 646-652. ISBN 978-625-8254-58-7

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Abstract

In order to improve their market position and engage with customers more effectively, companies in the video game industry are choosing digital advertising over traditional methods of advertising due to the intense competition in the market. As any commercial activity that occurs within video games, in-game advertising is undoubtedly one of these. All video game ads, though, are not a commercial success. They can make players unhappy and irritated if they are not skilfully incorporated into the game. But an effective in-game advertisement can have a positive effect on customer perceptions of the brand and their purchasing decisions. The most notable and successful of these kinds of advertisements are those that offer rewards to players upon completion of a viewing session (for watching fullscreen video adverts). Player engagement can be increased in this way. The world economy is predicted to benefit from the substantial growth in the in-game advertising industry in the upcoming years, which is mostly attributable to the rapid advancement of immersive and artificial intelligence (AI) technologies. In addition to the proven ability of this kind of advertising to lower costs, increase reach, and boost return on investment (ROI), marketers must also achieve the ideal balance between attracting in viewers and preserving the player's gameplay experience.

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