Market Insights Advertising & Media Media Games

In-game Advertising - India

India

India is expected to see a projected revenue of €0.61bn in the In-game Advertising market market by 2024.
The market is forecasted to experience an annual growth rate (CAGR 2024-2029) of 11.26%, leading to a projected market volume of €1.04bn by 2029.
The average revenue per user (ARPU) is anticipated to be €2.24.
When compared globally, in China is set to generate the highest revenue, with €42,610.00m in 2024.
In India, the In-game Advertising market is rapidly expanding, driven by the surge in mobile gaming and the growing digital media consumption habits of the population.

Key regions: France, United Kingdom, United States, South Korea, Europe

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Analyst Opinion

The In-game Advertising market in India is experiencing significant growth and development.

Customer preferences: Indian gamers are increasingly spending more time playing video games, both on mobile devices and consoles. This has created a lucrative market for in-game advertising as game developers and publishers seek ways to monetize their products. In addition, Indian gamers are becoming more receptive to in-game ads, especially if they are seamlessly integrated into the gaming experience and offer rewards or incentives.

Trends in the market: One of the key trends in the Indian In-game Advertising market is the rise of mobile gaming. With the increasing penetration of smartphones and affordable data plans, mobile gaming has become a popular form of entertainment in India. This has led to a surge in the number of mobile games available in the market, creating ample opportunities for in-game advertising. Advertisers are capitalizing on this trend by partnering with game developers to display ads within mobile games. Another trend in the Indian market is the emergence of esports. Esports has gained significant popularity in recent years, with professional gaming tournaments attracting large audiences and generating substantial revenue. In-game advertising has become an integral part of esports events, with sponsors and brands leveraging the opportunity to reach a highly engaged and captive audience.

Local special circumstances: India has a large and diverse gaming market, with a growing number of gamers across different age groups and demographics. This presents a unique opportunity for advertisers to target specific segments of the population through in-game advertising. Advertisers can tailor their ads to appeal to different consumer preferences and interests, thereby maximizing the effectiveness of their campaigns. Furthermore, India is a price-sensitive market, and gamers are often reluctant to pay for games or in-app purchases. In-game advertising provides a viable alternative for developers to monetize their games without relying solely on user payments. This has led to an increase in the adoption of in-game advertising models, such as rewarded ads, where players can earn virtual currency or other rewards by watching ads.

Underlying macroeconomic factors: India's rapidly growing economy and increasing disposable income are driving the growth of the In-game Advertising market. As more people have access to smartphones and internet connectivity, the number of gamers in India is expected to continue to rise. This, in turn, will fuel the demand for in-game advertising as advertisers seek to capitalize on the growing user base. Additionally, the digital advertising industry in India is experiencing significant growth, with advertisers shifting their focus from traditional media to digital platforms. In-game advertising offers a unique and engaging way for brands to connect with consumers, and advertisers are recognizing the potential of this medium. The increasing investment in digital advertising, coupled with the growing popularity of gaming, is expected to further drive the growth of the In-game Advertising market in India. In conclusion, the In-game Advertising market in India is witnessing rapid growth and development, driven by customer preferences for mobile gaming, the rise of esports, and the unique characteristics of the Indian gaming market. This growth is further supported by underlying macroeconomic factors, such as India's growing economy and the increasing adoption of digital advertising. As the gaming industry continues to evolve and expand in India, the In-game Advertising market is poised for further growth and innovation.

Methodology

Data coverage:

The data encompasses B2C revenues. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach / Market size:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., Consumer Insights), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.