UP288 Esport Economics - The in-game ad market

The market for in-game advertising and sponsorship is valued at around $8billion, and is predicted to more than double by the end of the decade. The audience is young, affluent and increasingly diverse, so it's unsurprising that big brand names are seeking ways in to this world, via the publishers of mobile and big box console game titles such as League of Legends, Call of Duty or FIFA. Great for brands, but what do gamers think of commercial messages gatecrashing their party? We asked today's guests, Ryan Snyder and David Wynn. David is Head of Solutions Consulting at Google Cloud for Games and Ryan is Head of Esports and Games at Nielsen Sports. To help frame the conversation, we asked Ryan to commission a special Unofficial Partner research panel, using Nielsen's Video Game Tracking survey, the premiere source for measuring consumer sentiment towards video game software on PC and console.The top line results are as follows:Gamers think Advertisements will disrupt gameplay (74%)Particularly acute among males 18-24 (82%)Youngest gamers (7-12) least likely to agree (70%)Willing to have brands advertise, if it means cheaper or free games (70%)Males (74%) more likely than females (64%) to agreeYoung males 7-12 are the most likely to agree (81%) while young females 7-12 are the least likely (58%)Appreciate advertisements that do not disrupt viewing experience (79%)Older males 35-54 most likely to agree (84%)Females 18-24 are the least likely to agree (71%)Advertisers are improving the gaming experience (57%)Strong split between males (62%) and females (48%)Even more stark among the 18-24 demo where males (69%) strongly agree while females (37%) languish behindBrands who advertise in game have a stronger connection to the gaming community (62%)Same story as "advertisers are improving" split between males (66%) and females (56%)Most stark in 18-24 demo males (65%) and females (45%)Listen to the podcast for analysis of this data and other questions facing the commercial side of esports.Unofficial Partner is the leading podcast for the business of sport. A mix of entertaining and thought provoking conversations with a who's who of the global industry. To join our community of listeners, sign up to the weekly UP Newsletter and follow us on Twitter and TikTok at @UnofficialPartnerWe publish two podcasts each week, on Tuesday and Friday. These are deep conversations with smart people from inside and outside sport. Our entire back catalogue of 500 sports business conversations are available free of charge here. Each pod is available by searching for ‘Unofficial Partner’ on Apple, Spotify and every podcast app. If you’re interested in collaborating with Unofficial Partner to create one-off podcasts or series and live events, you can reach us via the website.