LAS VEGAS — Advertisers are pouring billions into virtual worlds, with U.S. game ad revenues projected to climb nearly 7% to reach $8.59 billion this year. But, while nearly half of gamers purchase items based on in-game ads, a majority still view these interruptions as a distraction from the action.
The problem? A lack of channel-specific creativity, where marketers simply transplant traditional media assets into dynamic 3D environments.
“A lot of mistakes I see is a copy-paste of either a brand asset or just a way of showing up that they might do in traditional media,” Morgan Pomish, SVP, head of innovative experiences at Digitas North America, said in this video interview with Beet.TV. “You really need to make sure you’re understanding and that’s going to change platform by platform.”
Bending the brand rules
For Pomish, navigating the gaming landscape requires a departure from the strict brand safety guidelines that often govern television and display advertising. What succeeds in a user-generated sandbox may fall flat in a battle royale setting.
“Sometimes for brands this can be challenging because it might mean you have to bend the rules a little bit,” Pomish said. “A lot of the times there’s a very rigid playbook that brands like to follow… But there’s a little bit more of a playfulness naturally that comes in with the gaming space and a mistake I see sometimes is brands not leaning into that enough.”
One method for mitigating disruption is the use of rewarded video, which offers players in-game currency or items in exchange for their attention. Pomish noted that these formats succeed because they provide tangible value at the end of the viewing experience, rather than “forcing them to watch something with nothing on the other end.”
Beyond the last click
While gaming has traditionally been viewed as a top-of-funnel awareness play, agencies are increasingly observing its impact on consideration and intent. The immersive nature of the medium allows for deeper emotional connections, though attribution remains a complex hurdle for marketers accustomed to direct response tracking.
“Gaming is probably not served best as a last-click place, but it can be the reason that somebody makes a last click with your brand somewhere else,” Pomish said. She emphasized the importance of avoiding “dead ends” for consumers, utilizing tools like QR codes or direct integrations to facilitate a “path to commerce.”
To bridge the gap between play and purchase, the industry is seeing a rise in commerce integration within gaming environments. Market data suggests that while 64% of gamers find ads disruptive, nearly half still make purchases based on them.
From experiments to ecosystems
Even so, the era of treating gaming as an experimental “one-off” channel may be fading.
“Modern, smart brands are starting to see the value of gaming as an entire ecosystem,” Pomish said. She advocated for a strategy that includes selling user-generated content in one space while hosting custom experiences elsewhere, noting that “all these places have different audiences and different objectives.”
But that may require a rethink of the role of influencers. Pomish advised against viewing creators merely as amplifiers of a corporate message, suggesting they serve better as “decoders” who can interpret community desires and help brands build authentic, non-disruptive environments.
