Are in-game audio ads the next big play for brands on gaming platforms?

New Delhi: Advertising has been a crucial stream of cash flow for gaming apps and gamers have been a hotspot for potential customers that advertisers want to capitalise on. Gaming in India has gradually gathered steam as consumers spent approximately Rs 23 crore on mobile gaming in 2023.

While advertising in the gaming space has been important for brands, in-game audio ads are starting to pick up. According to industry experts, advertisers are shifting to audio ads because they are less disruptive and can play in the background without interrupting gameplay.

Commenting on advertisers turning to in-game audio ads, Siddhartha Vanvani, founder and CEO, Digidarts, stated, “Advertisers are turning to audio ads in games because of their ability to engage with users without disrupting gameplay. Audio ads provide integration, allowing players to continue their activities while listening, leading to increased engagement and retention. In addition, the rise of mobile gaming and voice-activated devices has made audio advertising more widespread and effective.” 

The global in-game advertising market is expected to clock a revenue worth $109.6 billion in 2024, with the market expected to be valued at $169.4 billion by 2029, growing at a compound annual growth rate of 9.1%, according to Statista.

Experts added that the brands leverage AI and data analytics advances to target specific demographics while providing a personalised and immersive experience. Consequently, audio advertising is preferred by advertisers aiming to capture the attention of the gaming audience. 

Siddharth Nayyar, co-founder and CRO, Max Level, said, “In-game audio advertising improves the experience of gamers by not blocking the screen or interrupting gameplay. The audio ad plays in the background, allowing players to stay focused and engaged in the game. This approach respects the player's focus and immersion, leading to a more enjoyable and continuous gaming session.”  

Moreover, experts mentioned that audio advertising can influence game engagement by providing a non-interactive advertising mechanism that keeps players engaged in their game. Unlike visual advertising, audio advertising does not require players to interfere, preserving an immersive experience. 

However, experts emphasised that improper installation can harm the environment. In terms of click-through rate (CTR), audio ads usually have a lower CTR compared to audio-visual (AV) ads because AV ads are visually stimulating and are heard, thereby making them engaging and clickable. While audio ads excel at maintaining brand recall, they can ruin gameplay as well if not integrated properly. 

As per a report by Eskimi, 81% of media buyers are willing to increase their in-game advertising budgets within one year and 83% are expected to adopt this methodology by 2025. Another study by Admix reveals that approximately 93% of media buyers are planning to include in-game advertising methods by 2025. 

Paramjeet Singh, marketing head, consumer PC and gaming, systems group, ASUS India, highlighted, “For ASUS, in-game audio advertising offers an ideal solution to connect with our core gaming audience without interrupting their gameplay. However, the online gaming audience is increasingly maturing and seeking experiences free from intrusive elements like repetitive in-app video advertisements, which disrupt the user experience. The cluttered in-app pop-ups, subscriptions, and frequent interruptions push players to switch to alternative games available on the market.” 

Furthermore, industry experts further stated that in-game audio announcements enhance the gaming experience by providing a less intrusive alternative to banner announcements that interrupt gameplay.

Gamers like in-game audio ads compared to video ads, as the former doesn’t hinder their gameplay, according to a study by YouGov. Additionally, another study by Dentsu revealed that audio ads could create 41% positive brand recall, about 38% for video ads, and produce 50% more attentive seconds per thousand impressions. 

Audio announcements play in the background, allowing players to focus on the game without visual distraction. The combination creates a continuous flow, creating a more engaging experience. In addition, streamlined audio ads can fit right into the game, adding value rather than detracting from it, experts added. 

When asked if in-game audio ads are the gateway to personalised ads, industry experts stated that they have certainly become an entry point for more personalised content, allowing companies to better target specific demographics.  

“The personalised approach increases interaction and brand engagement, while players receive relevant and engaging content. In addition, in-game audio ads can dynamically adjust to the game environment, making the experience more immersive and personal,” Vanvani added.

A few experts highlighted that in-game audio ads can be personalised based on player data, making them relevant and engaging, as personalisation allows advertisers to connect effectively with specific demographics, enhancing the overall advertising experience. 

According to industry experts, the future of listening to ads in games is promising, and advances in technology have paved the way for a more sophisticated and immersive ad experience.  

“Marketers have been compelled to innovate in ways that effectively reach and engage our target audience without hampering their experience. Although in-game audio ads have been around for a while, they perfectly embody the subtle art of advertising, which is now capturing and retaining audience interest. We believe that by keeping in-game audio ads at optimal levels, we can unlock the next chapter of marketing in the online gaming world,” Singh added. 

They explained that as AI and data analytics evolve, advertisers will increasingly use these tools to deliver highly personalised and contextual ads. Immersion in voice-activated gaming and virtual reality/augmented reality (VR/AR) environments will improve the quality of the ads they live in and make them more immersive.  

In addition, the rise in popularity of mobile games and online gaming allows audio advertisers to reach a wider and more diverse audience.  

“The increasing adoption of voice-activated devices and virtual assistants will open new avenues for audio advertising within gaming environments. Additionally, we can expect more personalised, interactive, and contextually relevant audio ads, making them an integral part of the gaming experience,” Nayyar added.