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Global video games revenue is expected to reach over $320bn – Mobidictum.biz

Video games

As the game industry continues to grow daily, research by certain circles reveals what will happen in the coming years. Although the extreme growth phase due to the pandemic is behind, some experts say that such explosions play a role in forming different business lines and are a good step for healthy growth. The research conducted by PWC included the opinions of many experts.

Examining the global Entertainment and Media industry from many angles, the research collects, analyzes, and interrogates data and forecasts from the entertainment and media industry. The case contains 14 segments from 52 regions and provides insights into 2026.

Related: Mobile gaming and app industry state and marketing analysis in H1 2022

The research draws attention to the growing growth of games and says that the most preferred medium for young people is video games. Video games industry revenue (excluding esports) experienced the most significant growth reaching $214.2 billion in 2021. According to research data, this number will reach $321.1 billion by 2026, with a compound growth of 8.4%. Social/casual games will account for 75.58% of this revenue ($242.7 billion). 

Total global video games revenue, by segment (US$bn) – PWC

Not surprisingly, China and the US will account for about half of global gaming and esports revenues in 2021, but there will be specific changes in this regard. The report predicts growth in the most populous but less wealthy countries. Turkey is expected to be the fastest-growing video games market, with a compound growth rate of 24.1% between 2021 and 2026. Turkey is followed by Pakistan (21.9%) and India (18.3%), respectively.

Video game advertising will increase its superiority

In-app games and connected TV advertising revenue (US$bn) – PWC

The table also shows that integrated video game advertising revenues experienced a growth in 2021, which is thought to be a pandemic-induced explosion. From 2017 to 2026, integrated video game ads generated much more significant revenue than TV ads. Looking at the projections, integrated in-game ads will generate $104.6 billion in revenue in 2026, while TV ads will generate $25.7 billion in revenue. 

Related: Why are Playable Ads so attractive?

Global digital and non-digital E&M advertising revenue (US$bn) – PWC

When we look at digital and non-digital advertisements, digital advertising stands out as expected. Digital advertising, which took up in 2018, seems to have accelerated its pace as it was not affected by the pandemic closures in 2020. On the contrary, it started to rise even more. While digital advertising has a market share of 0.48 and non-digital advertising has a market share of 0.27 billion dollars in 2021, these numbers will reach 0.74 and 0.29 billion dollars by 2026.

Confidentiality and privacy changes

As it is known, Apple has started a significant movement in the mobile advertising space with the IDFA protocol it announced. The IDFA protocol, which aims to protect users’ data security, impressed both users and advertisers. With this protocol, Apple implemented ATT (App Tracking Transparency). With ATT, users can decide whether to share data on their Apple devices with third-party apps and restrict advertisers’ access.

Stating that many users have restricted access with the implementation of this application, the research points out that iOS advertisers, application publishers, and big technology companies have been greatly affected. Although this initiative resulted in many advertisers shifting from Apple to Android, Apple does not seem to back down on this issue. 

The remainder of the report covers many topics such as advertising, the metaverse, and the music industry. If you are interested and want to reach the full extent, you can access the research prepared by PWC by clicking here. 

Source: https://mobidictum.biz/pwc-says-social-and-casual-gaming-is-fuelling-a-boom-in-the-industry/

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