Google AdMob has officially started serving in-game ads, indicating the continuous growth and mainstream acceptance of this format. However, this development may not necessarily be a cause for celebration for the companies already operating in this space.
AdMob announced its expansion into in-game ads through a blog post on March 12. Like other in-game ad companies, AdMob’s offerings are immersive, taking the form of traditional digital banner ads overlaid on in-game objects such as street signs or billboards. For now, AdMob’s inventory is limited to mobile games, but the company has plans to eventually offer ad placements inside both two-dimensional mobile games and three-dimensional games like “Roblox” or ”Call of Duty.”
Impact on the In-Game AdMob Industry
Google’s entry into in-game ads, a market that accounted for $8.84 billion in advertising spend in 2023, represents an endorsement of the format from one of the largest digital advertising platforms on the web. This move is seen as great news for the industry at large.
However, Google’s entry into the in-game ad space is a double-edged sword. Leading in-game ad companies of the past, such as Massive, found success through acquisitions by larger players like Microsoft. When Microsoft and Sony reportedly started their own internal in-game ad departments in 2022, it sparked speculation that today’s in-game ad firms could achieve a similar exit.
Google’s In-House Development
But Google has made it clear that it is developing its in-game ad products in-house, rather than working with a pre-existing in-game ad firm such as Anzu, Bidstack or Frameplay. This decision is based on Google’s rule that for anything that’s Google-sold, they have to be the one measuring it.
The challenges faced by Bidstack in 2024 provide further evidence that an acquisition exit might not be the most likely future for in-game advertising companies in today’s market. On March 11, the day before Google’s announcement, Bidstack temporarily suspended its shares from public trading after announcing a failure to find a potential buyer.
Shift in Attention
In general, some attention has shifted off of in-game advertising as marketers have grown more experienced operating in the gaming sector. The agenda of today’s (March 26) Interactive Advertising Bureau PlayFronts event in New York City features only one presentation by a dedicated intrinsic in-game advertising company, a significant decrease from past iterations of the event.