Programmatic Evolution in Gaming: How Pmps Boost Publisher Revenue and Ad Quality

When it comes to programmatic advertising, the only constant is change. As technology and user behaviours evolve, so too must the industry. Gaming ads are a relatively recent stage in that evolution, but already demonstrate consistent year-on-year growth, with a predicted CAGR (compound annual growth rate) of over 10% between now and 2030.

In parallel, marketers are renewing their focus on quality over quantity in ad placements - and Private Marketplaces (PMPs) are resurging as a preferred model for premium inventory, giving publishers more control over which advertisers access their audiences. For the sell side, this shift isn’t just a trend, it’s an opportunity to maximise revenue, protect user experience, and strengthen long-term brand relationships. 

As gaming continues its rapid expansion and PMPs re-emerge as a cornerstone of quality programmatic, publishers sit at the intersection of two powerful trends. The question now is how to turn that convergence into tangible revenue growth.

To answer this, let’s take a look at why gaming offers a uniquely rich environment for publishers, how programmatic trading is evolving toward curated, high-value deals, and how PMPs enable publishers to fully capitalise on this momentum.

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Gaming’s audience demands ad quality

According to a recent Fandom study, people’s principal reasons for playing video games were to unwind and relieve stress (54%), as well as creation, imagination and self-expression (46%). Whether they’re waiting in line, commuting to work, or seeking a more prolonged, immersive experience at home - in each case they escape reality. Therefore, any ads served in these moments should enhance rather than disrupt the experience if they are to deliver against campaign outcomes. 

But some of the more intrusive performance marketing approaches are still commonplace in programmatic, mostly because of the immediate route to a CTA (think  unclosable pop-ups, flashing banners or users being forced to click out of an app). What gaming offers is a platform for subtle creative and a cohesive user experience. It represents an opportunity to meet connected and technically astute consumers where they are, engaging with high-quality content in an environment they enjoy. What’s more, high-quality, native ads increase time spent in-game and reduce churn, directly supporting publishers’ revenue goals.

Successful in-game advertising also requires a deep understanding of user personas, which then inform more personalised native ad experiences. Gone are the days where gamers can be written off based on a stereotype: they are by no means all young people living at home, without disposable income, gaming on a desktop or console. In fact, today’s gamers come from all demographics, and tend to have high expectations for their gaming experiences - including the ads they are served. They are a mobile-first audience segment who habitually make purchases on mobile devices and are likely to convert in these environments and formats. But only if a quality ad is pitched just right.

The return of the PMP (and why it matters for publishers)

PMPs were at the forefront of digital advertising 15 years ago. And here we are in 2025, facing limitations on how we track and target users. Therefore, we’re starting to see a shift back to the basics of preferred deals, contextual targeting, and private marketplaces. What’s more, with the focus on quality over quantity, this evolution actively supports gaming formats. Here’s how:

• Audience segmentation: Gaming audiences, though vast, can be niche and highly specific, from casual mobile gamers to hardcore PC gamers. Publishers can offer highly specific segments to advertisers who would otherwise rely on a spray-and-pray approach, unlocking higher CPMs for premium inventory. 

• Premium inventory access: PMPs allow publishers to control which advertisers appear on their games, protecting user experience while maximising revenue. At the same time, advertisers can rest safe in the knowledge they’re only accessing brand-safe, premium inventory, for better user engagement and positive brand association.

• Optimised pricing and efficiency: Offering advertisers negotiated rates via a PMP reduces wasted impressions, ensuring publishers capture more value per impression. For advertisers, bidding in open auctions alone can risk exposure to duplicate requests, so being able to transact via a PMP also gives them peace of mind.

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These benefits are clear, but for many publishers, the question isn't ‘why PMPs?’. It’s ‘how do I get started?’

Getting PMP-ready: practical advice for publishers

For publishers who haven't explored PMPs before, the prospect of getting started can feel daunting. The good news? The barriers to entry are lower than you might think. The biggest hesitation I hear from publishers is around scale. They assume they need millions of daily active users to make PMPs worthwhile. In reality, if you have engaged audiences and quality inventory, you're already 80% of the way there. We've seen publishers with 500K MAU see meaningful revenue uplifts through well-structured PMPs.

To get started, ensure you have clean first-party data and clear audience segments, audit your current ad stack for stability, and identify two or three brand partners that naturally align with your audience. Don't try to build the perfect PMP programme on day one. Start with one or two trusted advertiser relationships. Test the mechanics, learn what works, and iterate. Publishers typically see results within 30-60 days.

A good monetisation partner handles much of the heavy lifting - from advertiser outreach to ongoing optimisation. If you're already successfully monetising through traditional programmatic channels, PMPs are a natural evolution, not a revolution. You're simply adding more control, better pricing, and stronger relationships into the mix.

Gaming represents one of the most lucrative opportunities in programmatic today, especially within a PMP environment. Publishers benefit from growing, engaged audiences with high retention potential, ad formats that support a seamless UX (reducing churn), higher CPMs from curated PMP deals, and long-term brand relationships, as advertisers increasingly value controlled, high-quality placements.

Gaming isn’t just another programmatic vertical; it’s an environment where publishers can truly thrive, now that PMPs are back in the spotlight.

Whether you're curious about PMPs, want to audit your current programmatic setup, or are looking for ways to increase yield without compromising user experience, iion's marketplace team can help. We partner with gaming publishers to build customised strategies that balance revenue growth with long-term player retention. Speak to us about your monetisation goals at marketplace@iion.io. 

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