Gaming Best Practices

Forward

The Untapped Opportunity of In-Game Advertising

Gaming presents a unique opportunity for advertisers to connect with consumers when they’re relaxed, focused, and fully engaged. Unlike many mobile ad experiences, where people may be multitasking, gaming places the consumer in an immersive environment where they’re open to new experiences. In fact, today’s in-game advertising often adds value to that experience through rewarded formats. And game developers—keen to keep users engaged—take steps to ensure those ads are integrated thoughtfully.

And yet, gaming remains an underutilized channel for many advertisers. Orange 142 Emerging Channels Council created this guide to help brands and agencies better understand the opportunities. And make no mistake, there’s a lot to like about advertising in gaming, including the sheer volume of people who place, rich targeting capabilities, a huge variety of ad formats, and programmatic in-game buying that drives conversions and brand lift.

About the Orange 142 Emerging Channels Council

The Emerging Channels Council is a thought leadership body within Orange 142 that focuses on educating, guiding, and encouraging independent brands and agencies to experiment and excel in underutilized and innovative channels. Through collaboration, data-driven insights, and practical resources, the council will help Orange 142 clients obtain strategic growth through sustainable digital advertising practices.

To access all of the Emerging Channels Council resources, please visit: https://orange142.com/emerging-channels-hub

Table of Contents

1. The marketing opportunity
2. What is In-game advertising?
3. Benefits of in-game advertising
4. Challenges of in-game advertising
5. Emerging technology and trends
6. Measurement & Attribution
7. Data & Privacy Considerations
8. Tips (best practices) for successful ads
9. About Orange 142

1. The Opportunity

The market for in-game advertising has grown significantly, with some predicting it will reach $11.02 billion by 2025 and $18.17 billion by 2029. Technological advancements and increased interest from advertisers drive this uptick in advertising. Major brands increasingly invest in this space, recognizing its potential to reach an engaged audience.

Despite this growth, in-game advertising remains underutilized compared to other digital channels like social media or search advertising. Many advertisers are still wary of it, concerned that their ads will interrupt the gaming experience and reflect poorly on their brand.

But in-game advertising offers distinct advantages, including high engagement rates, immersive formats, precise targeting capabilities, and most importantly -- the ability to enhance gameplay and earn goodwill for your brand. 

Everybody Games

Too often, our image of a gamer is reduced to a teen boy or a young man holed up in a basement, hunched over a console. But that’s just a tired stereotype. The truth is, everybody games. Moms bond over Words with Friends as Dads fire up Madden NFL or burn rubber in Forza Motorsport. Fortnite and Roblox have evolved into bustling virtual economies, while Wordle was played 4.8 billion times in 2023 alone. Millions of people play Match 3 games while waiting for the bus or a doctor’s appointment. 

Research by Activision Blizzard Media highlights just how broad and diverse the gaming audience has become. The average gamer is now 36 years old, and the global gaming population is nearly evenly split between men and women.

Mobile gaming is a big driver of this growth, opening up the gaming world to everyone who carries a smartphone. In the U.S. and U.K., 87% of gamers play on smartphones or tablets, and 86% engage with mobile games at least once a week. Casual games, such as puzzles and memory challenges, bring in new audiences daily, especially among those who don’t self-identify as “gamers.”

Today’s players generally fall into two broad groups: multi-platform gamers and mobile-centric players. Of the mobile-first segment, 53% play daily. Across all segments, players consistently value ad formats that offer rewards, such as in-game currency or new features, and express frustration with ads that interrupt gameplay.

Twitch

It’s impossible to discuss the in-game advertising opportunity without talking about Twitch. It’s a platform where authenticity and interactivity go hand-in-hand. Audiences don’t just passively watch a livestream -- they share comments, answer questions of the day, take polls, tip the streamer, and vote. Twitch viewers are so loyal that they’ll rearrange their schedules to catch live streams in real time. They trust their favorite streamers and appreciate it when brands sponsor them. Twitch offers compelling opportunities if you’re looking for a way to connect with highly engaged audiences.

2. What is in-game advertising?

How Online Games are Monetized

Games are generally monetized through subscriptions, in-app purchases, advertising, or all three. Game developers put a tremendous amount of time into it. They thought into their monetization strategies for good reason: they want gamers to play, and any experience that interferes with the experience hinders their ability to generate revenue.

For this reason, game developers indeed spend significant time analyzing player behavior to optimize their games and monetization strategies. For instance, game developers have multiple methods to identify their various levels players and optimize the ad experience. They also optimize the advertising experience to enhance the game experience. This optimization begins with the ad unit itself. Rewarded ads allow players to voluntarily watch an ad in exchange for in-game rewards, such as extra lives, in-game currency, or power-ups. The ads themselves are placed strategically, slipping in between game levels or rounds or when a user completes a challenge.

Ads are also tailored based on user behavior and preferences. For instance, non-paying users will see more ads, and even the types of ads (banner, interstitial, rewarded) will depend on the user segment.

All of these decisions are driven by game-play data, which game developers gather daily to detect subtle changes in user behavior. So, if your brand's fear of creating a bad brand experience for a player has stopped it from advertising in the channel, rest assured that developers take steps to ensure ads enhance gameplay.

Ad Formats

In-game advertising is rich and varied, offering various formats that let you connect with players in meaningful, creative, and performance-driven ways. The key is choosing the right format to match your goals, your message, and the way your audience plays.

3. Benefits of In-Game Advertising

If your brand hasn’t considered in-game advertising yet, you probably should. There are so many great reasons to do so, starting with the fact that more than 3.2 billion people worldwide play games.

But it’s not just about reach. Games are one of the few true “lean-in” environments, where every user is fully engaged by choice. Unlike utility or ride-sharing apps, which are often used to complete a task, games are played during downtime, relaxation, or personal enjoyment. That mindset—focused, receptive, and undistracted—makes gaming a uniquely powerful space for advertisers to connect.

Immersive Ad Experiences
Unlike traditional formats interrupting content, in-game advertising can be seamlessly woven into the game environment. Native formats, such as branded billboards, in-game products, or signage, enhance realism but don’t disrupt the player experience. These ads feel like a natural part of the virtual world when executed well.

Extended Visibility and Higher Recall
In-game placements often remain visible longer than conventional ads. Because they can reappear across multiple gameplay moments, they offer sustained exposure that reinforces brand recognition and drives stronger recall over time.

Precision and Measurability
Digital integration allows advertisers to track performance with a high degree of accuracy. Metrics such as viewability, completion rates, and interaction data provide actionable insights, enabling brands to refine their campaigns in real time.

Enhanced Brand Safety

Many mobile and casual gaming environments offer a controlled setting with limited or no user-generated content. This gives advertisers greater control over context and adjacency, which are critical for maintaining brand integrity.

Cost Efficiency

In-game advertising integrates seamlessly into the gaming environment through virtual billboards, product placements, or dynamic ads. These formats are less expensive to produce and maintain than traditional video or broadcast advertising. In addition, data collection and AI advances allow advertisers to deliver highly personalized ads based on players' preferences, habits, and in-game activities. This combination of cost-effective production and precise targeting makes it a powerful tool for brands looking to maximize ROI. 

Customizability at Scale

Campaigns can be tailored to specific genres, game mechanics, and geographic markets. Whether launching a global initiative or targeting a niche audience, advertisers can shape their message to fit the experience.

Room for Creative Innovation

In-game advertising offers a canvas for experimentation, from branded mini-games to integrations that leverage augmented or virtual reality. As technology advances, the creative potential for these formats continues to expand.

Support for the Gaming Ecosystem

In-game advertising also plays a key role in supporting developers, particularly those behind free-to-play titles. Ad revenue enables continued innovation, gameplay enhancements, and access to high-quality content at no cost to the player.

Fantastic Targeting Capabilities

In-game advertising provides many ways to home in on your ideal audience, including:

Influencer Marketing Opportunities

Partnering with gaming influencers, especially popular streamers on platforms like Twitch or YouTube, can be a powerful way to build brand credibility and reach highly engaged audiences. These streamers often have strong, trust-based relationships with their followers, who view them as authentic and relatable. By integrating your product naturally into live streams or gameplay commentary, you can tap into that trust, spark conversation, and drive meaningful brand consideration. Just be sure the partnership feels organic; authenticity is what makes influencer marketing work in the gaming world.

4. Challenges of In-Game Advertising

Navigating the Ethical Concerns of In-Game Advertising

While in-game advertising offers a compelling way to reach engaged audiences, especially on mobile, it can come with reputational risk. Many players associate in-game ads with low-quality “gotcha games” (i.e. titles that rely on predatory monetization tactics, such as excessive ads or manipulative design, which can have a negative impact on the gaming experience.

This perception can create brand-safety issues, especially as it is difficult to ensure ads purchased programmatically won't appear in these types of games. It is important to be aware of these types of games, and to take steps to avoid them in your ad buys. For those seeking to avoid this issue entirely, safer advertising alternatives include Twitch sponsorships, streamer partnerships and in-game placements that feature a partnership with the game developer so that ads are integrated organically into the game’s experience (e.g. your ad on a billboard that’s part of the game’s environment.)

Respecting the Player Experience

Players understand that advertising helps keep games they want to play free or available at a low cost, but they expect the overall gameplay experience to be respected. Ads that interrupt gameplay or break the immersive experience they’ve come to value can quickly turn enjoyment into an annoyance, and no brand wants to be seen as an annoyance.

How to Respond:

• Prioritize ad formats that feel native to the game environment. Consider rewarded videos, which have high completion rates and brand lift.
• Avoid placements that disrupt key gameplay moments.
• Work with developers to ensure seamless integration and contextually relevant timing.

Delivering a Realistic Advertising Experience

In-game environments present unique technical challenges for ad delivery. Ads must adapt to dynamic game environments, including changing player movements and varying viewpoints. This requires sophisticated technology to ensure ads remain contextually relevant and visually integrated.

How to Respond:

• Invest in advanced ad rendering technologies that can adapt to real-time game conditions.
• Work closely with game developers to ensure seamless integration of ads into the game world.
• Use AI and machine learning to adjust ad placements and appearances dynamically.

Poor Ad Targeting

Irrelevant or out-of-place ads can frustrate players and feel intrusive, especially in casual or free-to-play environments where players expect fluidity. Misalignment between ad creative and game context can result in wasted impressions and negative brand association.

How to Respond:

• Use contextual targeting and audience data to ensure message relevance.
• Customize the creative to fit the tone and aesthetics of the game.
• Partner with platforms that offer genre-specific or demographic targeting options.
• Work with an agency that can help you select the right gaming environments for your ads.

Performance Issues & Lag Times

Ads that slow down gameplay or cause crashes are more than annoying. They can derail the entire experience and damage your brand’s reputation. This is especially problematic on mobile, where bandwidth and processing power are limited.

How to Respond

• Optimize ad files for mobile performance and fast load times.
• Choose formats that minimize system demand, such as pre-cached video.
• Test across devices to ensure smooth performance.

Ad Fatigue

Gamers may tolerate a certain amount of advertising, but repeated interruptions or repetitive creative can lead to fatigue and frustration. This increases the risk of tune-out or worse, negative brand sentiment.

How to Respond

• Limit ad frequency and rotate creative regularly.
• Offer opt-in formats like rewarded or offer wall ads to give users control.
• Track engagement trends to detect early signs of fatigue and adjust accordingly.

Brand Safety Risks

While many games provide brand-safe environments, others may include violence, adult themes, or unpredictable user behavior. Without the right partner, advertisers risk appearing in content that doesn’t align with their values.

How to Respond:

• Vet inventory sources and choose partners with strong brand safety tools.
• Use allowlists, blocklists, and exclusion categories to control ad placement.
• Prioritize platforms that offer human and AI-based review processes.

Measurement and Metrics

Traditional digital advertising metrics, such as CRT, don’t always apply to in-game environments for a variety of reasons:

• Non-Clickable Formats. Intrinsic in-game ads, such as virtual billboards or product placements, are integrated into the gaming environment and aren’t clickable.
• Dynamic Environments. In-game ads are displayed in 3D spaces where factors such as player movement, viewing angles, and occlusions affect visibility. These dynamics make it difficult to apply traditional 2D ad metrics directly.
• Lack of Immediate Interaction. Unlike banner ads or social media ads, players typically do not interact with in-game ads during gameplay, which limits the use of interaction-based metrics like CTR or conversion rates.

How to Respond:

• Viewability measures whether the ad was visible to players and for how long. Technologies such as ray tracing and "Time-in-View" have been developed to track this viewability.
• Attention. Evaluates how much attention players give to the ad, often using eye-tracking studies.
• Brand Lift. Assesses changes in brand perception or awareness among players exposed to the ads.
• Attribution. Tracks post-game actions, such as website visits or purchases, linking them to in-game ad exposure.

5. Emerging Technology & Trends

It’s no surprise that gaming evolves quickly, as developers constantly push the envelope to keep users playing and engaged. The same is true for the advertising technologies woven into those experiences. 

Here are a few trends driving the channel.

AI-Powered Personalization

AI is rapidly advancing how ads are delivered and optimized in real time. Dynamic creative tools can now generate thousands of ad variations tailored to individual preferences, player behavior, and in-game context. Whether it's adjusting messaging, visuals, or call-to-action timing, AI lets brands serve the right message to the right player, at precisely the right moment.

Smarter Game Recommendations

AI isn't just powering ad delivery—it’s influencing content discovery, too. By analyzing gameplay behavior, interaction patterns, and engagement signals, platforms can surface highly relevant game recommendations and promotional content. This makes advertising feel more like guidance than intrusion.

VR and AR Integration

The next frontier in immersive advertising lies in virtual and augmented reality. From branded challenges and product demos in VR to AR billboards that blend into real-world environments, these experiences make brand interactions more interactive and memorable. As more players engage with these formats, best practices are emerging to guide brand activations in 3D spaces.

Programmatic Advertising in Games

Programmatic has moved beyond display, video, and CTV. It also plays a vital role in in-game advertising, allowing brands to focus on their ideal audiences.  Real-time bidding lets you place ads across devices and platforms based on data-driven insights. AI enhances campaign performance by optimizing bidding, creative selection, and real-time targeting. With better measurement tools, you can do things such as track attribution and ROI to understand better the channel's role in meeting your business goals.

Blockchain and NFT Integration

Blockchain technology is unlocking new models for ownership and exclusivity within games. Brands can now create verifiable, limited-edition virtual goods via NFTs, such as branded skins, accessories, or collectibles. These items can be earned, bought, or traded, offering players a new level of engagement and a lasting digital presence for advertisers.

Hyper-Realistic Native Advertising

Native ads are evolving from static placements to dynamic, hyper-realistic elements that feel like a natural part of the game world. From branded billboards in racing games to virtual storefronts in open-world environments, these ads elevate immersion while delivering brand visibility in a way that enhances, rather than disrupts, gameplay.

Gamification of Ads

The same advertisements blur the line between ads and gameplay. Brands can now embed messaging directly into game mechanics through interactive elements such as branded power-ups (i.e., an in-game reward that features a brand’s product or logo and gives players a temporary advantage), sponsored challenges, and unlockable content. This approach drives higher engagement by making ads feel like a rewarding part of the gaming experience.

Influencer Marketing in Gaming

Gaming influencers, led by Twitch, are increasingly central to campaign strategies. Whether they’re debuting branded skins, co-hosting in-game events, or leading virtual collabs, influencers offer credibility and reach -- especially among younger audiences. As virtual worlds expand, expect influencer-led brand activations to become more immersive and event-driven.

Generative AI for Dynamic Content Creation

AI is now generating personalized environments, quests, and even characters in real time -- opening the door for brand integration within dynamically built game worlds. Advertisers can collaborate with developers to place subtle product mentions, themed NPCs, or branded items that adapt to individual player behavior and preferences.

Zero-Party Data Strategies

As privacy regulations evolve, many publishers turn to zero-party data -- information players willingly provide in exchange for in-game rewards. This opt-in approach builds trust while giving advertisers access to meaningful insights for personalizing experiences without relying on third-party tracking.

6. Measurement & Attribution

Measuring success in in-game advertising requires a multidimensional approach. From viewability and engagement to brand impact and return on spend, you can now access a robust set of metrics to gauge how your ad was received by the players who saw it.

Advanced Attribution Models

Modern attribution approaches account for the full funnel. Multi-touch attribution recognizes the value of each interaction along the path to conversion, such as the app install, an in-game purchase, or another desired action. 

Position-based models (also known as U-shaped) allocate greater weight to the first and last interactions, while still acknowledging the supporting roles played by mid-journey touchpoints. Linear attribution assigns equal credit to each step in the journey, offering a balanced view when no single interaction dominates. These models help marketers understand how their efforts work in tandem rather than in isolation.

Real-Time Analytics and Optimization

Gaming's digital foundation allows tracking user behavior with remarkable speed and granularity. Marketers can access real-time insights into player acquisition, retention, and in-game engagement, enabling them to refine campaigns on the fly. Game publishers like Riot Games use this behavioral data to improve player experience, while platforms like Rockset support sub-second analytics -- allowing for immediate adjustments to game mechanics, monetization strategies, and ad placements.

Cross-Channel Integration

Today’s players move fluidly across channels, and so should your measurement strategy. In-game ads can reinforce messaging introduced through display or video campaigns, while retargeting efforts on social or mobile help close the loop. By integrating data across these channels, marketers can better understand user journeys, personalize interactions, and measure total campaign reach. Unified reporting also enables more precise audience segmentation and stronger performance benchmarks -- ultimately supporting more strategic, insight-driven media planning.

7. Data and Privacy Considerations 

As online gaming grows into a multi-billion-dollar industry, it brings serious data privacy and security responsibilities. Today's games don’t just entertain; they collect, store, and process large volumes of personal information. 

Key Privacy Considerations

• Data Collection and Usage.  Modern games collect a wide range of user data, including IP addresses, geographic locations, gameplay behavior, and in some cases, biometric inputs from cameras or sensors. While this data enables personalization and targeted advertising, it raises critical questions about consent and transparency.
• Consent and Transparency. Players, especially younger ones, must know what data is collected and why. Many games are played by children under 13, and regulations like the Children’s Online Privacy Protection Act (COPPA) apply. Under COPPA and similar laws, companies must clearly explain how they collect, use, and share children’s personal data.
• Data Minimization. Gaming companies must follow data minimization principles, collecting only the information necessary for a specific purpose. Overcollection not only increases privacy risks, it also increases legal exposure under regulations like GDPR and CCPA.
• Security Threats. Gaming platforms are frequent targets for cyberattacks, account takeovers, and data breaches. Other risks include cheating software and content piracy, which undermine player trust and compromise intellectual property.

Regulatory Landscape

• Global Privacy Laws. Laws such the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) require developers and advertisers to implement stronger data controls, offer opt-out mechanisms, and ensure transparency in data usage.
• Industry-Specific Regulations. Some regions are exploring additional regulations explicitly tailored to the online gaming sector, particularly as concerns around youth data, biometric tracking, and advertising intensify.

Best Privacy Practices for Gaming Companies

• Data Protection Measures. Implement encryption, secure cloud infrastructure, regular audits, and AI-based threat detection. Blockchain is also gaining traction for fraud prevention and transaction transparency.
• User Control and Transparency. Offer players easy-to-understand privacy settings, robust account protections (like two-factor authentication), and transparent privacy policies.
• Ethical Data Practices. Collect only the data you need, get explicit consent, and prioritize privacy-by-design in all product development.
• Continuous Improvement. Predictive analytics, cross-industry collaboration, and routine updates to privacy protocols can help you stay ahead of evolving threats.

8. Tips for Success

In-game advertising offers unique creative and contextual opportunities, but success depends on thoughtful execution. Ads must be designed for speed, clarity, and respect for the player experience. These practical tips will help your brand connect with gamers in seamless and relevant ways while driving your business goals.

1. Keep it Simple and Concise. Use short, clear messaging, ideally seven words or less. The gaming environment moves quickly, and players don’t have time to decode complex creativity. Quick, digestible messages perform best.
   
   
2. Prioritize Non-Intrusiveness. Design ads that blend naturally into the game environment. Native placements, such as in-world billboards or branded signage, can deliver impact without interrupting gameplay.
   
   
3. Follow the 3-Second Rule. Players typically give ads just a few seconds of attention. Ensure your message is understandable within the first three seconds, especially for video or interactive formats. (Rewarded ads are an exception.)
   
   
4. Front Load Important Information. Place your logo and call-to-action in the first few frames of video ads. Ensure your brand is easy to identify. A clear, well-placed logo increases brand recall and recognition, even if the ad is only seen briefly.
   
   
5. Tailor Ads to the Platform. Design creatively specifically for the mobile, PC, or console device. Each platform has its own interaction patterns, screen layouts, and player behaviors.
   
   
6. Target Relevant Game Genres. Ad performance often varies by game type. Match your creatives to genres that reflect your brand identity or appeal to your audience’s interests.
   
   
7. Offer Value to Players. Rewarded ads -- where players choose to watch an ad in exchange for in-game benefits -- are among the most effective formats. They have high completion and engagement rates and create goodwill for your brand.
   
   
8. Optimize for Sound-Off Environments. Many in-game ads are viewed without audio. Use visual cues, captions, and strong design to ensure your message still lands when sound is off.
   
   
9. Respect the Game Experience. Avoid formats that interrupt gameplay or cause lag. Poorly timed or resource-heavy ads can frustrate players and negatively affect your brand.
   
   
10. Use Dynamic Visual Elements. Incorporate movement, bold colors, and attention-grabbing visuals. In a fast-paced environment, static or subtle creativity often gets overlooked.

9. About Orange 142

Orange 142 is a digital marketing and advertising company with offices across the US. We help marketers of all sizes grow their reach and revenue through data-driven media strategies. We also partner with agencies and execute campaigns on behalf of their clients.

Our team of experts deeply understands the digital landscape and the latest advertising and marketing technologies. We work closely with our clients to develop and execute custom advertising and marketing campaigns that meet specific goals.

We are committed to providing our clients with the highest service and transparency. Open communication and collaboration are essential to the success of every advertising and marketing initiative.

Want to learn how this can work for you? Orange 142 helps businesses of all sizes navigate and maximize emerging advertising channels with strategic guidance and best practices. Let’s connect to explore the right approach for your goals.

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