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The year-old Luna cloud gaming unit plays into Amazon鈥檚 strengths. When it launched in March 2022 following a long beta period, Luna joined a market crowded with gaming incumbents (Microsoft, Sony, Nintendo, and Nvidia) and tech players (Apple and Google).

Despite financial troubles among some esports and gaming video platforms, ad revenues will continue to grow for both media.

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 on smartphones saw declines for key metrics in 2022, putting a wrinkle in a growth trend that nearly dates back to the launch of app stores. Read on for figures that highlight what鈥檚 changing, and how these changes might impact user acquisition.

The average US adult spends just over an hour playing video games per day, according to our estimates. Such a sizable share of attention offers a prime opportunity for brands to advertise in games鈥攅specially since traditional barriers to brand advertising have been lowered. Big changes have opened opportunities for brands across platforms.

Despite the fact that in-game ad spending will see relatively modest growth over the next few years, games still offer several opportunities for brands.

Gaming. The opportunity: More than half of US adults (and nearly three-quarters of US Gen Z adults) are gamers, according to our forecasts. But gaming accounts for less than 5% of US ad spend, according to the Interactive Advertising Bureau. Gen Alpha and Gen Z have grown up with gaming, and platforms like Roblox are second nature to the digital natives.

Amazon sees a big opportunity in beauty: The retail giant is hosting the Summer Beauty Haul sales event to capture shoppers鈥� attention, boost retail media spend, and drive sales.

On today's episode, we discuss the appeal of Prime Video with ads, why we might see more honest and transparent advertising, the inevitability of face computers, Netflix's chances of becoming a significant gaming hub, how the average retirement age is changing and more. Tune in to the discussion with our analysts Ross Benes, Blake Droesch, and Max Willens.

Final question, Ross in the lead talking about Disney and gaming. So Disney is investing 1.5 billion into Fortnite creator Epic Games in the company's most significant venture into gaming yet writes our Daniel Constantinovich.

It secures Microsoft鈥檚 future as a leader of the gaming industry and gives it a strong foothold in fast-growing markets. US mobile game ad spending is expected to reach $6.67 billion this year, per our forecast, and Activision has been preparing for a more aggressive push into the market.

Microsoft鈥檚 attempt to acquire Activision Blizzard in what could essentially create a video game monopoly has many, including the Federal Trade Commission, keeping a close eye on the gaming industry. The $68.7 billion acquisition would give Microsoft a leadership position with franchises like Call of Duty, Candy Crush Saga, World of Warcraft, Diablo, and Overwatch.