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In-game Advertising - China

China

Highlights

In China, revenue in the In-game Advertising market market is projected to reach US$46.61bn in 2024.
Revenue in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 8.58%, leading to a projected market volume of US$70.35bn by 2029.
The average revenue per user (ARPU) China is anticipated to amount to US$59.33.
In a global context, the majority of revenue will be generated China, with a figure of US$46.61bn expected in 2024.
In China, the surge in mobile gaming has led to a significant increase in brands leveraging in-game advertising to engage younger audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in China has been experiencing significant growth in recent years.

Customer preferences: Chinese consumers have shown a growing interest in online gaming, with a large number of gamers actively participating in various gaming platforms. This has created a favorable environment for in-game advertising, as advertisers can reach a wide audience through these platforms. Additionally, Chinese gamers are generally receptive to in-game advertising, as long as it is non-intrusive and adds value to their gaming experience.

Trends in the market: One of the key trends in the In-game Advertising market in China is the increasing adoption of mobile gaming. With the widespread availability of smartphones and the convenience they offer, more and more Chinese gamers are turning to mobile gaming as their preferred form of entertainment. This shift towards mobile gaming has opened up new opportunities for in-game advertising, as advertisers can now target consumers on their mobile devices. Another trend in the market is the rise of esports in China. Esports, or competitive video gaming, has gained immense popularity in the country, with millions of viewers tuning in to watch professional esports tournaments. This presents a unique opportunity for in-game advertising, as advertisers can reach a large and engaged audience through esports events and sponsorships.

Local special circumstances: China has a unique gaming culture, with a strong emphasis on free-to-play games and microtransactions. Many popular games in China are free to download and play, but offer in-app purchases and virtual goods that players can buy with real money. This model has led to a high engagement rate among gamers, as they are constantly incentivized to make in-game purchases. In-game advertising can complement this model by offering additional rewards or discounts to players who engage with the ads.

Underlying macroeconomic factors: China has a rapidly growing middle class with increasing disposable income, which has led to a rise in consumer spending on entertainment and leisure activities. This has created a favorable market for the In-game Advertising industry, as advertisers can tap into this growing consumer base and target them through in-game advertising. Furthermore, the Chinese government has been supportive of the gaming industry and has implemented policies to promote its growth. This includes initiatives to develop the esports industry, as well as regulations to ensure the integrity and safety of online gaming platforms. These government efforts have helped create a favorable environment for in-game advertising in China. In conclusion, the In-game Advertising market in China is experiencing growth due to customer preferences for online gaming, the increasing adoption of mobile gaming, the rise of esports, the unique gaming culture in China, and underlying macroeconomic factors such as a growing middle class and government support for the gaming industry.

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.