In 2022, the global video gaming community reached an impressive 3.03 billion players.

Mobile games dominate the landscape, accounting for 1.75 billion players and are expected to expand further to over 2.32 billion players within the next 5 years. This growth signals a substantial opportunity for advertisers through in-game advertising, which we discussed in detail in a previous piece.

So… how does in-game advertising work and what advantages does it offer?

In-game advertising involves integrating ads directly into video games.

Historically, these game ads have had a poor reputation. Many mobile gamers considered them annoying, but things have changed now and in-game ads have evolved to be less intrusive, incorporating innovative formats that blend seamlessly into the overall gaming experience.

Suppose you have a product or a service you want to promote.

Why not create a short playable video ad around that product or service in the style of Candy Crush (or any other mobile game for that matter)? Once you’ve created these ads, you can use them to target Candy Crush players, significantly increasing the likelihood of these mobile gamers interacting with your interstitial ad (and brand). They’ll play the interactive playable mini-game you’ve created… because they love Candy Crush and will see your ad as a continuation of the gameplay rather than an ad.

Add a reward (like a discount voucher) or gamify the experience a bit and you’ll be golden.

What Are Playable Video Ads?

Playable ads are interactive advertising units that providing a mini-gaming experience to users. It’s typically used to give users a preview of an app or a game before they commit to downloading it, but is increasingly being used by brands and businesses to engage audiences and boost conversion rates.

HTML5 playable ads are built using HTML5 technology, enabling a range of interactions like dragging game pieces or solving puzzles. These ads provide a realistic feel of the game or app mechanics, greatly enhancing user engagement and brand recall. Some of the advantages of HTML5 technology include:

• Creating Customized Experiences:
  Unlike video-based ads, HTML5 playables can offer multiple outcomes based on user decisions
• In-depth Analytics:
  Developers can access detailed data on user behavior and preferences, allowing them to tailor their offerings for increased user satisfaction and retention.

The Audience

Data from GWI reveals a diverse gaming audience, with mobile gamers showing a slightly higher female presence (55%) compared to male gamers (45%). In terms of age, mobile gamers tend to cover all age groups and demographics. You can still achieve very specific demographics targeting… by carefully selecting what games your ads appear in – a feature that Google’s AdMob supports.

In-game advertising isn’t limited to one format; but includes:

• Blended in-game ads:
  These are ads that are integrated into the actual gameplay and (crucially) enhance the overall gaming experience without really interrupting it.
• Around-the-game ads:
  These ads exist within the gaming experience but outside of actual gameplay. They can include rewarded videos or interstitial ads between the gameplay.
• Away-from-the-game ads:
  These ads use related platforms, like streaming, e-sports, and influencer marketing.

Importance of Playable Ads for Non-Gaming Companies

As traditional advertising methods become less effective, non-gaming companies are increasingly exploring interactive marketing strategies like playable ads. Their benefits extend beyond gaming to various sectors, including food and beverage, fashion, beauty, and more. Here are some examples of successful playable ads in non-gaming sectors:

• L’Oréal: Developed a word puzzle game to highlight the features of its new hair care product, boosting the product’s visibility on digital platforms.
• Cheetos: PepsiCo crafted a fun game aligned with its animal-themed campaign strategies for a new Cheetos product, enhancing its digital presence.
• Lego: Demonstrated its assembly concept through a simple, gamified experience split into five parts, providing a memorable and effective campaign.
• Tipico: This online betting company created a mechanic allowing users to place bets and directly engage with the games involved, which significantly increased site memberships.

Some of the coolest in-game ad formats I’ve seen recently include audio ads that specifically target gamers who play with the sound on. This allows you to integrate audio messages as a part of your ad without necessarily disrupting the gameplay. Rewarded ads that offer in-game benefits for watching ads are also popular, but can be expensive especially for small companies. Meanwhile, expandable ads that start off as a display banner and only expand upon user interaction tends to provide the best overall return on investment.