Gamevertising: Brands’ new winning strategy

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  Quantumrun Foresight
• August 20, 2024

Insight summary

Gamevertising is becoming brands' favored marketing strategy. Integrating ads into video games provides a more immersive experience, enhancing player interactions while opening new opportunities for businesses and marketers. However, ad fatigue and data privacy concerns highlight the need for balanced, ethical advertising strategies.

Gamevertising context

Gamevertising (in-game advertising) has emerged as a powerful tool for brands seeking to engage with the growing gaming community. This strategy integrates advertisements seamlessly within video games, offering an immersive and interactive experience that traditional ads often lack. Notable examples include Rocket League's in-game cars inspired by Hot Wheels and Fortnite's virtual concert for Travis Scott, showcasing how brands can creatively embed themselves within gaming environments.

The effectiveness of gamevertising lies in its ability to engage gamers without disrupting their experience through formats like static in-game, dynamic, and contextual ads. For instance, Coca-Cola and KFC have utilized multipronged strategies, from sponsoring gaming events to creating branded content, to build strong connections with gaming audiences. Moreover, the integration of artificial intelligence (AI) is set to enhance these interactions, with AI-enabled non-player characters (NPCs) providing personalized and real-time engagement opportunities.

The development of gamevertising continues to evolve, driven by technological advancements and an understanding of cultural nuances. In Southeast Asia, for example, the gaming culture is deeply rooted, with a market valued at USD $5 billion and a diverse audience of 270 million gamers, according to marketing firm WARC. Brands have been taking advantage of this young and active gaming community. For example, Pizza Hut Malaysia used the popularity of mobile football games during the 2022 World Cup to drop order codes in these apps, allowing gamers to order limited-edition pizzas based on football player names. As a result, the campaign brought in a 14 percent increase in orders.

Disruptive impact

As in-game advertising becomes more elaborate and sophisticated, players may experience more personalized and engaging interactions with their favorite brands, enhancing their overall gaming experience. However, the constant presence of ads could lead to ad fatigue, potentially diminishing game enjoyment. Additionally, there are privacy concerns, as increased data collection on gaming habits may lead to more targeted but intrusive marketing efforts.

For companies, gamevertising presents new opportunities and challenges in their marketing strategies and operations. Businesses may need to invest in developing creative and non-intrusive advertising content that resonates with gamers. They could partner with game publishers to offer exclusive discounts or collectibles. However, they also need to be cautious about overloading players with ads, which could result in consumer backlash.

Governments may need to adapt their policies to address the implications of gamevertising on data privacy and advertising standards. With the rise of personalized ads, there could be a need for stricter regulations to protect consumer data and ensure that advertising practices are ethical and transparent. Additionally, governments may explore ways to support the gaming industry, recognizing its economic potential and cultural significance. 

Implications of gamevertising

Wider implications of gamevertising may include: 

• Increased demand for skilled game developers leading to higher employment rates in the tech sector.


• Companies focusing more on interactive and immersive ad content leading to more engaging marketing strategies.


• Enhanced data analytics from in-game interactions leading to more personalized consumer experiences.


• Governments establishing stricter regulations on in-game data collection, leading to improved consumer privacy protections.


• Brands partnering with game developers for exclusive in-game content, leading to new revenue streams.


• Increased screen time among gamers leading to concerns about mental and physical health.


• Pushback against ethics groups as gamevertising influence children and teens to purchase lootboxes.

Questions to consider

• How might in-game advertising change the way you perceive and interact with brands?


• How could gamevertising influence your spending habits and purchasing decisions?