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In-app purchase spend is increasing, with gaming generating the majority of purchases, but ad spend will continue to dominate. Gaming saw healthy growth during the pandemic, but a drop in activity in 2022 also led to a drop in spending on virtual goods. In-app ad spend growth remains healthy at 14.8% this year, translating to an additional $20.52 billion in ad sales over 2022. Use this chart:.

Gaming video content viewers鈥攚hich we define as internet users who watch live or recorded videos of others playing a video game on a digital video platform at least once per month鈥攚ill follow a similar growth trajectory. Viewership grew 47.5% between 2018 and 2020 but only 13.5% from 2020 to 2022, and it鈥檚 expected to rise just 8.8% over the next four years, to 65.9 million.

The only two activities where males overindex are livestreaming and gaming. Key Takeaway: Don鈥檛 assume every Gen Zer engages in every activity available on a platform. Time constraints make it impossible for even the most social-obsessed users to do everything. Connecting with this cohort means being present on multiple platforms and multiple activities.

Smaller companies have released a series of smart glasses with mini displays on their lenses for niche purposes, such as gaming or entertainment. Next year will showcase immersive media鈥檚 future. Although Meta Quest 3 will undoubtedly sell millions of devices, it won鈥檛 usher in the metaverse, and the other devices will remain small scale.

Gaming gives digital advertising a boost. Total game ad revenues in the US have more than doubled in just five years, as advertisers will spend $8.53 billion in 2024, per our October 2023 forecast. By 2026, it will have passed the $10 billion milestone.

Well, streaming in gaming, in a lot of things but particularly in gaming, is certainly the future. You had a chart in your piece, which jumped out to me, basically saying or asking when game development professionals were asked, "Which gaming platforms will grow the most by 2025?" Most people, 40% said streaming followed by mobile, 24% and then Metaverse and console further down the list.

Roblox, which has attracted a host of brand partners to its metaverse gaming platform, launched new policies in response to an FTC complaint that include a ban on advertising to users under 13 that may keep marketers away.

Why advertisers need to keep up with consumer changes in streaming, social search, and gaming. Most teens and parents are comfortable with how much time teens spend on smartphones, social media. A slight increase in minutes per day with media, thanks to another boost for digital.

The major telecom players are leaning into bets on the future鈥攆rom gaming to working with startups鈥攖o get ahead. Verizon goes all-in on gaming and live events. Betting big on mobile gaming, the company launched a 5G-enabled device earlier this year. For those consumers who have ever lost phone reception at a concert, high-capacity events are a key application for 5G鈥攁nd Verizon is taking advantage.

Audio and navigation are here today, but video and gaming are coming. Multiscreen cars and limited autonomous driving remain uncommon, so video is still less important than streaming audio services and navigation services鈥攂ut this will change rapidly.

Digital gaming is also knocking. Gamers will tap into digital wallets and transactions in games like Roblox and Minecraft. But digital doesn鈥檛 mean financially literate. Roughly 85% of Gen Zers say there are hurdles to financial success, per Bank of America. Very few feel able to build an emergency fund, save for retirement, or invest.

Nearly 71% of Gen Zers are digital gamers, per our forecast, and they鈥檙e likely to spend 3 to 6 hours gaming every week, according to a February 2023 poll conducted by Morning Consult. This is one of the few digital arenas where Gen Z beats millennials not only in penetration but in size鈥攂y nearly a million users, according to our forecast.

Offering a digital game that encourages healthy financial decisions and promotes financial learning seems like a commendable thing to do. But banks must be careful when implementing gaming features in their offerings. In the UK, the Financial Conduct Authority (FCA) warned that trading apps that employ gamification techniques could cause novice investors to take on more risk than they can handle.

Metaverse marketing targets children: Virtual platforms like Fortnite and Roblox emerged as popular advertising channels for brands looking to make inroads with young users, but they are still video games-first鈥攁nd ones that serve an extremely young demographic.

For consumers, the easiest way to envision the concept is through virtual reality (VR) gaming. Game developers have been early adopters of VR and augmented reality, and major game platforms have partnered with brands in the virtual worlds of Roblox, Fortnite, and Minecraft. We predict new mixed reality devices from Apple, Meta, and Sony will drive more VR interest among game developers.

Bonus: Futurize gaming to boost another ad channel. What do improved nonplayer characters in video games have to do with marketing? A lot, considering they may give way to a 鈥渂anner year鈥� for the industry. AI will improve the gaming experience, which could lead to more gamers, expanding an industry that already comprises more than half of the US population, according to our forecast.

In the same way Gen Alpha was born with a smartphone in their hands, they were born gaming. Marketers need to leverage this by attaching gaming opportunities to brands, the way Lego has on its website, or building experiences within games like Roblox. Interactivity is important beyond gaming as well. As true digital natives, members of Gen Alpha can spot paid promotional content immediately.

While the company鈥檚 cloud and AI services continued to drive growth鈥攚ith Azure reporting a 29% revenue increase and gaming revenues rising 61% due to the Activision Blizzard acquisition鈥攖he advertising segment showed a solid performance, demonstrating resilience in a competitive market.

With AWS and Pentagon deals, Intel is trying to bounce back in the AI chip market after steep financial losses.

Gaming. We don鈥檛 have age breakouts on gaming, but members of Gen Alpha are likely to play games like Minecraft, Roblox, and Fortnite, where top activities include adventuring, building, and creating, per GWI. Nearly 3 in 10 (26%) Gen Alphas live in households with VR headsets, per Morning Consult.

Gaming excludes advertising on esports or gaming video content; includes advertisements placed within games on mobile platforms.

Gen Z鈥檚 most common interest in the metaverse is playing video games, according to a YouGov survey. Young people are looking to virtual reality (VR) for gaming and entertainment rather than as a replacement for physical and more typical social media interactions. That presents an ad opportunity, but proceed with caution, since even young people are far from all-in on a VR future.

For example, an ad for a video game may have a CTA that looks like an image of the video game. An ad for an app may include the word 鈥渄ownload鈥� so users understand the instruction. The CTA can appear more than once, but it should definitely be a visual anchor at the end. 3. Don鈥檛 limit Shorts ads to short-form creators.

However, unlike CTV or gaming, which have pretty singular uses, 鈥渢he smartphone is kind of like the Swiss Army knife of connected devices. It does it all,鈥� said Wurmser. The leading use for mobile is video, which represents 33% of time spent on mobile devices, followed by digital audio (18%), social networks (13%), gaming (11%), and messaging (10%), according to our forecast. 3.