The mobile gaming industry has skyrocketed in the past ten years, going from small to huge worldwide. According to Statista, the global revenue in the mobile games segment of the digital media market was forecast to continuously increase between 2024 and 2027 by US$20.2 billion (+20.46 percent). After the fifth consecutive increasing year, the indicator is estimated to reach US$118.89 billion and, therefore, reach a new peak in 2027.
The source forecasts that global in-game advertising revenues are estimated to expand, exceeding 46 billion dollars by 2027. Programmatic advertising is becoming a major force in driving this change. It’s a game-changer for advertisers, giving them a strategic advantage in this competitive mobile gaming world.
In this blog, we’ll explore how programmatic media buying is assisting developers and advertisers in harnessing its benefits for the growth of mobile gaming. But before getting there, we will first understand the parameters responsible for mobile gaming growth.
Key Drivers of Mobile Gaming Growth
According to reports, In 2024, the mobile games market is projected to generate a revenue of US$98.74 billion worldwide. By 2027, the market is expected to exhibit a compound annual growth rate (CAGR 2024-2027) of 6.39%, resulting in a projected market volume of US$118.90 billion. Moreover, the number of users in this segment is expected to reach 1.9 billion by 2027. User penetration is anticipated to be 22.1% in 2024, with an estimated increase to 23.3% by 2027.
Let’s explore the important factors responsible for this growth in mobile gaming.
Increased Smartphone Penetration
As smartphones become more widely adopted worldwide, an increasing number of users will have access to mobile gaming content, fueling the industry’s growth and expansion.
Shift in Consumer Behavior
Mobile gaming has become a preferred pastime, as consumers increasingly turn to mobile devices for entertainment and leisure activities. This shift in behaviour drives higher engagement and opens up monetisation opportunities for game developers.
Advancements in Technology
Continuous advancements in mobile technology, such as improved graphics, processing power, and connectivity, empower developers to create more immersive and engaging gaming experiences. This evolution attracts a broader audience base to mobile gaming.
Social and Multiplayer Gaming Trends
The growing popularity of social and multiplayer gaming experiences has led to greater community engagement and interaction among players. As a result, players spend more time playing games, creating longer play sessions and more opportunities for monetization through in-app purchases and advertising.
Also Read: The 8 Mobile Gaming Trends That Will Dominate In 2024!
What is programmatic media buying?
Programmatic media buying revolutionises the advertising industry by automating the process of ad buying and placement, utilising algorithms and real-time bidding to target specific audiences across digital platforms with maximum efficiency and effectiveness.
How does programmatic media buying contribute to mobile gaming growth?
Given the surge in mobile gaming usage worldwide (projected to reach a user base of 2.3 billion by 2027), programmatic media buying is crucial for advertisers aiming to optimise their campaigns and achieve unparalleled success. Let’s understand how programmatic advertising is considered an important factor.
Spot-on targeting engages the perfect audience
Programmatic media buying helps advertisers target their ads very accurately. Advertisers can use data-driven insights to create highly tailored campaigns that reach users based on demographics, interests, in-game behavior, and more. This helps them show the right ads to the right audience.
Also Read: How to Launch a Successful Marketing Campaign with Programmatic Advertising?
Maximizing ad performance with real-time analytics and optimization
With real-time analytics and optimization, advertisers can always improve their ads for better results. They can see how their ads are doing and change them right away if needed. Whether for making the ads look better, targeting different people, or spending money differently, programmatic media buying helps advertisers stay flexible and maximize their ads.
Choose from a variety of ad formats
Programmatic buying in mobile gaming supports diverse ad formats, such as display ads, interactive video ads that users can interact with, and rewarded ads where players get something in return for watching. Advertisers can choose the format that suits their goals and fits well with the game. This flexibility allows advertisers to experiment with different formats and identify what works best for reaching their target audience.
Also Read: What are different types of Mobile Ad Formats?
Identifying the most effective ad variant with A/B testing
A/B testing capabilities in programmatic advertising allow advertisers to compare two versions of their ads (Version A and Version B) to see which performs better. This testing method helps advertisers understand which elements of their ads, such as images, headlines, or calls to action, work best with their target audience.
By running A/B tests, advertisers can make data-driven decisions to optimise their campaigns, improve engagement, and increase conversions. It’s like conducting a mini-experiment to know what works best for reaching potential customers.
Smart ad spending helps achieve better results
Programmatic advertising targets specific audiences and optimizes ad spending in real-time, leading to improved outcomes at a lower cost than traditional advertising methods. It identifies high-performing ad placements and minimizes wasted spending on underperforming channels.
Cross-device targeting ensures maximum reach in mobile gaming
Cross-device targeting in programmatic advertising refers to reaching users across various devices, such as smartphones, tablets, desktops, and laptops. This approach allows advertisers to deliver targeted ads to individuals, regardless of the device they are using at any given time.
Valuable data insights and algorithms enable advertisers to identify and engage seamlessly with their target audience across multiple devices. Cross-device targeting ensures that advertisers can effectively connect with their audience across devices, maximising the effectiveness of their advertising campaigns.
Also Read: How Offerwall Ads Enhance User Retention And Monetization In 2024
Conclusion
The rise of the mobile gaming industry provides a valuable opportunity for advertisers, with programmatic advertising being a crucial tool for maximising reach and engagement. Precise targeting, real-time analytics, diverse ad formats, and cross-device targeting help advertisers design campaigns to connect with their target audience across various devices.
A/B testing further enables advertisers to refine their strategies for better performance, while cost-effective campaigns ensure efficient allocation of resources. Advertisers can take advantage of the widespread popularity of mobile gaming and reach remarkable success in this thriving market.
