Closing the Gap: Aligning Ad Spend with Gaming’s Growing Audience

Despite gaming’s popularity, where over three billion people play video games, ad budgets haven’t caught up with this massive reach — an IAB study found that most brands and agencies spend less than 5% of their marketing budgets on gaming. This gap between gaming engagement and ad investment highlights an untapped potential brands can no longer afford to ignore.

“Nobody is questioning the huge numbers of people that are gaming,” says Ruper Pay, iion’s Head of Advertiser Sales, emphasizing the disparity between reach and spend. “Why aren’t the ad dollars following the eyeballs as quickly as they have in other media channels?”

iion recently tapped industry experts to explore this discrepancy further and highlight the steps brands can take to tap into the growing gaming audience. Here are the top 5 takeaways they discussed:

1.) From casual gamers to key consumers.
Gaming’s audience has evolved to include a broad demographic range, far beyond the typical young, tech-savvy players. As iion’s Chief Commercial Officer, Yun Yip shared at the roundtable, “When you think about where the audience sits, many, like mums and dads on the train, wouldn’t call themselves gamers. But if asked, they’d admit they play casually. They're not hardcore gamers, but fall into the casual gamer category. Interestingly, women 35+ are the fastest-growing group of gamers in Australia, especially in the mobile gaming space.” 

This trend highlights a shift toward casual gaming among diverse age groups, with Australian gamers aged 55 and older spending nearly 29 hours monthly on tablets. Global preferences further shape this shift, with esports booming in the Middle East and Asia favouring mobile rewarded ads — an evolution that opens new opportunities for brands ready to tailor messaging to unique audience segments.

2.) Making metrics matter.
A recurring theme was the need for standardised metrics and attribution models, which are critical for demonstrating gaming’s ROI. Without unified metrics, it remains difficult for agencies to compare gaming ads to traditional digital formats and justify the investment to their clients. The call for standardisation would allow brands to benchmark campaign success through consistent metrics across digital channels. Attribution modelling, essential for digital advertising, is equally important in proving ROI to advertisers and clients alike. Additionally, gaming ads often yield higher engagement, with players showing sustained interest — a key selling point for advertisers seeking long-term audience interaction.

3.) Creative wins in gaming.
The discussion emphasised that creativity is paramount in gaming. High-quality, engaging creative content can yield significantly better results, as gaming audiences respond well to ads that align with their experience rather than disrupt it. "If the creative isn’t strong, no amount of media placement will help,” said one panellist, highlighting the need for ads to resonate with the gaming environment. 

Innovative formats such as in-game ads in popular titles like FIFA, or unique integrations in platforms like Minecraft, illustrate the potential for brands to tell compelling stories in gaming. When crafted thoughtfully, gaming ads not only drive engagement but can also enhance the gaming experience, fostering positive associations with the brand.

4.) A safer bet for brands.
For brands, gaming provides a distinct level of brand safety. Unlike user-generated content on social media, gaming environments offer controlled ad placements, reducing risk and providing safer spaces for brand messaging. Pay remarked on the importance of this safety, stating that it’s natural for brands to ask where they’ll appear, particularly as platforms like YouTube face scrutiny over content safety. However, the gaming sector also faces an educational gap. Agencies and clients need to understand that gaming is not just an add-on but a valuable media channel and a targeted audience in itself. This requires industry education and consistent guidance on the potential gaming holds as a media channel.

5.) Gaming is a marketing must.
The ultimate conclusion is an optimistic view of gaming’s future as a core component in marketing strategies. Experts emphasised the importance of integrating gaming into the broader media mix, moving away from viewing it as a siloed effort. Multi-channel campaigns that span platforms such as Twitch, IGN, and Livewire, as well as collaborations with gaming influencers, can extend a brand’s reach authentically. First-party data and a “test-and-learn” approach can also allow brands to adapt their strategies based on real insights into gaming behaviours. Brands that invest in gaming now, integrating it thoughtfully with other channels, stand to gain from the attention and engagement this vibrant sector offers.

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