Integrating not interrupting: can virtual out-of-home ads entice marketers?

"Could in-game advertising one day rival Facebook's scale? Ad pioneers, enabled by programmatic tech, believe targeted ads and branded integrations delivered natively into 3 billion gamers' favorite worlds could bring about a new era of economic prosperity and fund the birth of a metaverse. As part of our deep dive into all things gaming, The Drum talks to the very execs laying these virtual foundations."

"For years, ad execs fantasized about placing real-world ads into fully-realized gaming worlds such as Grand Theft Auto. With programmatic buying platforms reaching maturity, now anything can be inventory, be it an in-game billboard, a bus stop, a bin shed, a mural, a generic shopfront or even a power-up. They may resemble billboard ads - albeit sometimes wrapped up in cartoonish visuals - but they are bought digitally and can be targeted on a one-to-one basis, Minority Report-style, unlike real out-of-home (OOH)."

"In the past few years, Admix has received $10m in funding to do just that. Samuel Huber, the in-play ad platform's founder and chief executive, says: "It's a big opportunity. There are billions of people gaming every day who most brands are completely neglecting. That's almost another Facebook." Gaming is a few levels away from being a comparative media channel, Huber admits. But there's a lot of motivation to drive it. He"

Programmatic platforms now allow virtually any in-game surface to become sellable inventory, from billboards and bus stops to murals, shopfronts and power-ups. Targeted, one-to-one buying enables branded integrations delivered natively into games, offering advertisers precise reach across billions of players. Mobile players react differently to interruptions, using rewarded ads, paying to block ads, or quitting games, which increases demand for less intrusive native placements. Virtual out-of-home inventory remains nascent, but startups and ad networks are securing funding and building programmatic teams to monetize gaming ecosystems and support longer-term visions such as a funded metaverse.

Read at The Drum