Game Advertising. How digital advertising found a place in video games

Ten years ago, advertising in video games looked like an intrusive intrusion rather than an element of atmosphere. Now it's a piece of the world that gives it credibility. With the growth of the market and the advent of mobile games, advertising integration has become a technological, manageable and organically integrated revenue tool into the product economy.

Modern video games have become a full-fledged media ecosystem. In terms of reach and engagement, they have long surpassed classic entertainment formats, and in terms of costs they have caught up with modern Hollywood blockbusters. The player spends hours in the virtual world interacting with content actively, rather than passively, as is the case with videos or social media.

For an advertiser, this is a rare environment of full attention. The game sets the context, emotions, and rhythm of perception. Any brand element has the opportunity to become a part of what is happening, rather than a distracting irritant. Unlike traditional banner advertising, game advertising does not interrupt the user experience, but rather integrates into it, enhancing the atmosphere and complementing the narrative.

Historically, developers have sought a balance between monetization and convenience for the player. At first, the games were sold on a "buy and play" model. I paid once and received all the content. Later came microtransactions, premium subscriptions, and in-game purchases, lowering the barrier to entry into video games. But these models have a limit, because not everyone is willing to pay. That's why advertising has become a natural addition: it allows players to stay in the free model, and developers to earn income.

Today, there are several key monetization schemes through advertising:

• Rewarded advertising. The user watches a short video or interacts with the banner in exchange for in-game bonuses: energy, coins, levels. This format is especially popular in mobile games.
• Transitional advertising. Classic full-screen inserts between levels or during transitions. It is found not only in mobile games, but also in browser format.
• Interactive advertising. Mini-games in the advertisement itself, allowing you to test the product before installation. This format is a type of mobile advertising, but it is more often shown in mobile games.
• In-Game advertising. Advertising becomes a part of the game environment: logos in stadiums, banners along the tracks, branded items in the game world, etc.

The latter format is a promising element of market transformation today. Previously, such advertising appeared in the virtual space only with a preliminary agreement with publishers. And, mostly, in games sold according to the "buy and play" model.

Banners and rewarded videos are already embedded in the standard SDKs of modern mobile games, and most AdTech ecosystems, like UMG, support such integration formats, so integrated advertising requires the technological infrastructure of online advertising.

Modern platforms like Anzu or Bidstack offer native advertising integration into game textures. This means that the advertising message does not interrupt the gameplay, but organically integrates into the space — on the billboard, billboard, athlete's uniform, interface element. All this looks natural, does not cause irritation and does not reduce the player's involvement.

Technologically, such solutions operate on a principle similar to the classic SSP (Demand-Side Platform): The platform unites game studios that provide inventory (that is, advertising surfaces in their games) and submits it to an auction for advertisers. On the demand side, DSP (Supply-Side Platform) works, where the campaign is hosted, targeting parameters and creatives are set.

In this scheme, Anzu acts as an analogue of SSP: it manages sites and provides inventory, and advertising systems of brands or agencies, like DSP, purchase impressions. This approach makes the game advertising market comparable to the traditional digital environment. Moreover, it paves the way for the integration of data, analytics, and algorithmic purchasing, where the bid is formed dynamically and the impressions are optimized for the campaign goals.

UMG solutions work exactly according to the same logic, where the technological architecture is built around DSP and SSP models that ensure transparency, targeting and quality control of advertising placements.

Rewarded mechanics are based on the principle of exchange. The player receives a bonus (energy, currency, item) for watching a short video or interacting with an offer. For the developer, this is a double benefit: advertising does not cause irritation, and the player remains in the game cycle without feeling intrusive. It is often accompanied by interactive ads that immediately lead to the app store for easy download without leaving the game.

Both formats are important not only as income tools, but also as part of the retention economy. To keep the audience's attention, games require constant updates, events, and new content. Developing and maintaining these updates, which are sometimes commensurate with full-fledged additions to games, requires costs, and it is microtransactions, along with advertising, that cover the cost of updates, allowing projects to stay alive without increasing the barrier of entry for players.

UMG partners love the possibility of integrating advertising into their games. Our digital advertising ecosystem is easily integrated into mobile and browser games with no extra cost, monetizing gamers' attention.

Modern SSP and DSP platforms, including UMG, allow you to measure not only impressions and reach, but even user engagement. Thanks to the game data, it is possible to analyze how long he has seen the advertising creative, whether he has interacted with it. This approach brings game advertising analytics closer to product advertising. Advertising becomes not an external layer, but a part of the data ecosystem.

In addition, audience segmentation based on behavioral characteristics is possible in game advertising. All this makes the format valuable for advertisers seeking accurate targeting without invading the user's personal space.

Since some formats are comparable in terms of tools to mobile advertising formats, game advertising is just as effective as the mobile one we discussed earlier.

The next stage in the development of game advertising is the creation of hybrid ecosystems. Models are already emerging where in-game advertising is combined with subscriptions, user-generated content, and real-time events. Games are turning into a live media space where the brand is not just hosted, but becomes a co-author of the experience.

For players, this is an opportunity to get more content without paying for each update. For developers, advertising is a source of sustainable financing. For advertisers, it acts as a unique platform where advertising does not compete with attention, but lives inside it.

In-game advertising is no longer an add-on. It is a full-fledged part of the entertainment economy and one of the fastest growing sectors of digital marketing. And the technologies on which it is based are the same ones that have long proved their effectiveness.