Mobile Game Video Ads: An Underutilized, Yet Powerful Tool

Video marketing is an evolving landscape that can sometimes be difficult to keep up with.

While 81% of marketers say that video has directly influenced their sales, there is increasing evidence that traditional video marketing channels have become a tad bit oversaturated and too competitive – making it difficult for up and coming brands to truly stand out and connect with customers.

However, one area that no one seems to be paying much attention to is mobile game ads… a video marketing channel that remains underutilized by so many businesses.

This isn’t us saying this… but Bloomberg, which recently came out with a report that mobile game ads are seriously boosting podcast follower count. According to Bloomberg, “at least nine of the current top 50 shows on Apple Podcasts have been promoted in mobile games.”

The podcasts in questions aren’t necessarily podcasts you’d immediately associate with mobile video games (they’re not kids or gaming podcasts, for example). In fact, podcasts advertising via mobile game ads include podcasts by prominent creators and networks, like Wondery, Netflix, and iHeartMedia. Advertising through mobile game ads can come with significantly higher customer acquisition costs (one of our clients is paying $4 per new customer acquired) and higher minimum spends.

Mobile game ad spend is expected to increase 30% from $100 Billion in 2024 to $130 Billion in 2025 (data according to Statista via Junpier Research.

Despite this, Statista projects that mobile game ad spending will reach $130 Billion by 2025 – up from $100 Billion in 2024. This is the best kept secret out there, and you know what’s even better? Time spent “in” mobile games massively outpaces mobile game ad spend.

Typical smartphone users spend 10.9% of their time on their smartphones playing mobile games. Yet, mobile game ad revenues only account for 3.8% of all mobile ad spend.

Typical smartphone users spend 10.9% of their time on their smartphones playing mobile games. Yet, mobile game ad revenues only account for 3.8% of all mobile ad spend.

Unlike the cluttered social media timelines, mobile games offer a brand-safe space where marketers can select specific genres and tailor their ads so they can resonate with their target audience. This is such an effective channel, I remember (in detail) the first time I realized what an effective channel mobile game ads were. It was 2021 and I was extremely busy doing a million different things. Yet, I always made time to religiously play 2-3 mobile games. I’d use these mobile games to unwind and destress, and recognised how versatile in-game advertising was. You can create exceptional interactive videos that engage your audience and connect with them in a way no social media video ad can.

Rewarded video ads, in particular, can be even more effective – as they provide incentives to watch ads in exchange for in-game benefits. Studies have shown that rewarded video ads significantly increase user retention rates and drive positive brand associations.

Additionally, mobile game advertising boasts extensive targeting capabilities, enabling marketers to reach a broad audience across various demographics and interests. By leveraging first-party, second-party, third-party, and contextual data, advertisers can maximize their reach and connect with their desired audiences.

The data speaks for itself. Mobile game ads are the place to be.

Despite the higher customer acquisition costs and minimum spends, it trumps most other channels in effectiveness making it great value for money. If you’re not creating video ads for mobile games, you might be unknowingly leaving a ton of money on the table.

Subscribe to our newsletter to get an email when we publish our next piece on the different types of mobile game ads, including some of the best examples that I’ve personally seen.

It’s coming out tomorrow. Don’t miss it.

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Picture of Hesham Mashhour

Hesham Mashhour

My name is Hesham, but my friends call me Hesh. I'm a medical doctor and University of Cambridge graduate. Years ago, I started a YouTube channel called NeuroEverything and it was then that I discovered my passion for content. Things only grew from there and now I'm the founder and Chief Brain at Better Brain Lab where we help realize great ideas.
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