While some brands chase fleeting attention on social media and others struggle to cut through the noise on television, gaming continues to grow as a channel where consumers don’t see ads as disruptions—they welcome ads as part of their experience.
With nearly half (42%) of the US population playing daily and another 23% playing weekly, video games have become one of the most dominant entertainment channels in the world. Despite this, advertisers continue to underinvest in gaming, leaving a massive disparity between consumer time spent and ad spend.
The reality? While brands allocate billions to TV, social media, and CTV, the gaming industry remains one of the most underutilized advertising channels—even though gamers are actively engaged, highly responsive, and ready to engage with brands in new ways.
Whether you’re a brand or advertiser looking to break into the gaming space—or just curious about how advertising in video games can fit into your cross-channel marketing strategy—this guide is for you. We’ll walk you through:
1. Understanding in-game advertising and why it works
2. Types of in-game ads and their application
3. Common misconceptions about gaming ads—debunked with data-driven insights.
4. How to build an effective in-game advertising strategy
6. The bottom line and value of cross-channel full-funnel measurement
In-game advertising involves strategically placing branded content within interactive video games, appealing to highly engaged and diverse audiences. More than traditional ads, gaming ads feel natural and native, appearing as billboards in a racing game, branded skins, or interactive reward-based experiences.
In-game ads aren’t just a branding and visibility play—they drive real-world engagement and outcomes, helping brands tap into new high-value audiences and secure a competitive edge in their respective markets.
Not all in-game ads are created equal. The best approach depends on how naturally the ad, product, or service fits into the game and how players see and interact. Some ads blend seamlessly into gameplay, while others offer direct engagement or rewards. Here’s a look at the most effective formats and why they work.
These ads are built directly into the gaming world. Think billboards in racing games, branded jerseys in sports titles, or logos on in-game buildings. They feel like a natural part of the environment, making them less disruptive while driving brand consideration and perception.
Some brands go beyond ads and build their own games. These branded experiences engage players in a fun and interactive way while reinforcing brand messaging. While more of an investment, they pay off in effectively creating deep connections with players.
Sponsored or custom content involves offering branded character outfits, accessories, or in-game items. Players actively choose to use them, making this a high-engagement format that also fuels social sharing.
These are video ads that appear between levels or give players in-game rewards for watching. Instead of forcing ads on players, rewarded ads offer something valuable in return, making them one of the most accepted formats for advertising on mobile games.
Some brands also create interactive environments inside games. Players can explore, complete challenges, and interact with the brand in a way that feels fun rather than forced. These activations also often drive social sharing and buzz.
Instead of visual placements, brands can integrate audio ads into a game’s soundtrack or radio stations. This format is subtle yet effective, ensuring brand exposure without interrupting the player’s focus.
Maximizing variety and expanding your canvas for strategic integration, in-game ads succeed when they feel natural and enhance gameplay. Ultimately, the right approach depends on the game, the audience, and your overall objectives.
Hesitation about investing in advertising in video games often stems from outdated perceptions. While some assume gamers hate ads, and others believe in-game advertising is too expensive or hard to measure, the reality is far different. Here’s what often holds hesitant brands back—and why these concerns don’t hold up.
Gamers dislike disruptive ads, but well-integrated ads are not only accepted—they improve engagement. 68% of players notice in-game ads, and when done right, ads can feel seamless and add to the experience.
Even better, rewarded video ads—where players receive in-game perks for watching—are preferred by 38% of gamers. Players actively choose to engage when ads offer value. Younger gamers are even more receptive, with 17% of Gen Z describing in-game ads as “fun.”
Despite popular belief, in-game ads don’t require big production budgets. Programmatic in-game advertising allows brands to buy placements dynamically, just like display or social ads, making gaming accessible at any budget.
Advertisers diversifying their cross-channel strategies also see a strong ROI. Thirty-nine percent (39%) of gamers say they’ve purchased a product after seeing an in-game ad—a conversion rate rivaling traditional digital channels.
While some believe gaming ads lack performance data, modern measurement solutions prove otherwise. At DISQO, identity-based cross-platform measurement solutions help brands break through traditionally siloed environments, deterministically measuring how in-game ads drive incrementality for brand equity outcomes like awareness and favorability and performance outcomes like web lift, search lift, and ecommerce activity.
Additionally, gamers don’t engage with just one screen—51% multitask while playing, often browsing social media or watching TV. This opens up opportunities for cross-platform strategies, linking gaming ad campaigns to actions and incentives across other digital channels.
Gamers are broad and diverse, spanning Gen Z, Millennials, and even Gen X and Boomer audiences. From extremely popular mobile gaming to TV-connected gaming consoles and computers, gaming is more than a niche hobby. Not to mention the ever-growing variety of games leading to new opportunities for integration and alignment.
Key insights from DISQO’s recent 2025 In-Game Advertising report reinforce this growing popularity:
From card and word games to sports and role-playing games to racing and simulation games, brands have many choices to meet their audiences in natural gameplay settings.
When done right, in-game advertising is measurable, scalable, and welcomed by players. Gaming isn’t a future opportunity—it’s happening now, with brands across a variety of industries continuing to see the fruits of successful cross-channel integration.
To succeed in video game advertising, brands need more than just ad placements—they need a strategy that fits the gaming ecosystem. Unlike traditional digital ads, gaming requires thoughtful integration, understanding player psychology, and the right partnerships. Here’s how advertisers can maximize impact and avoid common missteps.
Not all gamers are the same. The right game depends on your audience’s demographics, interests, and behaviors.
What this means for advertisers and brands:
What this means for advertisers and brands: Gaming is not just one audience—it’s many, and brands that align with the right genre and player motivations will see improved engagement and outcomes.
Ad formats should match how players engage with the game itself. A mismatch between the ad and the game type can backfire and lead to disengagement.
What this means for advertisers and brands: Ads should be tailored to the game’s flow, not just dropped into a space where they might be ignored or disruptive.
Gaming isn’t just another ad channel—it’s an ecosystem with unique rules, technical constraints, and creative opportunities. Collaborate with game developers and partners to ensure their campaigns integrate seamlessly.
Key partnership considerations:
What this means for advertisers and brands: Working with developers early can create more impactful, integrated ad experiences rather than forcing ads into an environment where they don’t belong.
Gaming doesn’t happen in isolation. 51% of players multitask watching TV, 27% browse social media, and 19% socialize with friends virtually or in person.
This presents massive potential for cross-platform strategies, with examples such as:
What this means for advertisers and brands: Gaming shouldn’t be treated as a standalone channel—it should be a connected part of a larger media strategy.
Gaming is more than visibility—it’s about driving measurable brand and business outcomes and requires seeing the bigger picture beyond impressions and click-through rates. DISQO’s single-source, identity-based measurement ensures brands can see the full impact of in-game advertising, from awareness to action.
These insights allow advertisers and brands to:
Gaming is no longer a black box—DISQO ensures advertisers get full-funnel clarity. Brands adopting an always-on cross-channel measurement approach can optimize in real time, ensuring they’re reaching gamers and moving them to action.
In the following example, we see how, when done right, in-game advertising can drive real-world consumer actions. The key? Building immersive experiences that connect digital engagement with measurable business outcomes.
Chipotle’s Roblox activation illustrates how brands can use gaming to influence behavior, increase brand engagement, and drive real-world purchases.
Instead of a simple ad placement, Chipotle created the Burrito Builder, a gamified experience inside Roblox. Players earned Burrito Bucks—a virtual currency redeemable for real burritos in stores. This activation wasn’t just about visibility—it connected digital play with physical transactions, turning engagement into measurable revenue impact.
This campaign placed Chipotle among the top-performing branded experiences on Roblox, proving that when brands integrate naturally into gaming environments, they don’t just capture attention—they drive real-world business results.
In-game advertising is more than placing brands inside digital worlds—it’s about understanding how people engage, make decisions, and take action in spaces where they are most immersed.
Traditional media can force ads into consumer experiences, whereas gaming invites brands in—but only if they add value. The brands that embrace this opportunity will move beyond passive impressions to active engagement, loyalty, and measurable outcomes.
Here, we see evidence in the example of Chipotle’s success on Roblox, which wasn’t luck. It was strategic, immersive, and measurable. The results weren’t just digital—they were real-world behaviors: increased search, website visits, and foot traffic.
But visibility alone isn’t enough. To win with gaming ads, brands need the right measurement tools. DISQO’s Brand Lift and Outcomes Lift services provide a single-source view of how in-game ads drive perception and action—from awareness to conversion.
Ready to go deeper? See the data behind winning in-game ad strategies. Download DISQO’s 2025 In-Game Advertising Report here.