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In-game Advertising - Southeast Asia

Southeast Asia

In Southeast Asia, revenue in the In-game Advertising market market is projected to reach €0.65bn in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 9.21%, resulting in a projected market volume of €1.01bn by 2029.
The average revenue per user (ARPU) in Southeast Asia is expected to amount to €3.70.
In global comparison, the highest revenue will be generated China, with an expected figure of €43,220.00m in 2024.
Southeast Asia is witnessing a surge in in-game advertising, driven by increased mobile gaming engagement and sophisticated targeting strategies tailored to local audiences.

Key regions: China, India, United States, Germany, Europe

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Analyst Opinion

The In-game Advertising market in Southeast Asia is experiencing significant growth and development.

Customer preferences: Customers in Southeast Asia are increasingly turning to mobile gaming as a popular form of entertainment. Mobile gaming offers convenience and accessibility, allowing users to play games anytime and anywhere. As a result, the demand for in-game advertising is also growing, as advertisers recognize the potential to reach a large and engaged audience through this medium.

Trends in the market: One of the key trends in the In-game Advertising market in Southeast Asia is the rise of native advertising. Native advertising seamlessly integrates with the gaming experience, making it less intrusive and more appealing to users. This form of advertising is often seen as more authentic and can generate higher engagement and conversion rates. Advertisers are also leveraging the popularity of esports in Southeast Asia, sponsoring tournaments and partnering with professional gamers to promote their brands. This trend is driving the growth of in-game advertising in the region.

Local special circumstances: Southeast Asia is a diverse region with different languages, cultures, and gaming preferences. Advertisers need to consider these local special circumstances when implementing in-game advertising campaigns. Localization is key to effectively reach and engage with the target audience. Advertisers need to adapt their creatives and messaging to resonate with the local culture and preferences. Additionally, Southeast Asia has a large population of young gamers who are highly receptive to in-game advertising. Advertisers can leverage this demographic to promote their products and services.

Underlying macroeconomic factors: The growing middle class and increasing smartphone penetration in Southeast Asia are driving the growth of the In-game Advertising market. As more people gain access to smartphones and the internet, the potential audience for in-game advertising expands. Additionally, the rising disposable income in the region allows consumers to spend more on gaming and in-app purchases, creating opportunities for advertisers to monetize through in-game advertising. The strong economic growth in Southeast Asia also attracts global advertisers who see the region as a lucrative market for their products and services.

Methodology

Data coverage:

The data encompasses B2C revenues. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach / Market size:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., Consumer Insights), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.