In-Game Ads To Reach $650 Million

    March 4, 2008

The U.S. in-game advertising spending will increase from $295 million in 2007 to $650 million in 2012 according to projections from eMarketer.

Video game software and hardware sales will increase to $21 billion in 2012, up from $15.8 billion in 2007. "At a time when other sectors of the digital entertainment industry are struggling with lagging sales and rampant piracy, the US video game business is booming," says Paul Verna, eMarketer Senior Analyst.

"To compare video games to other media," says Mr. Verna, "the top-selling video-game title of the year, ‘Halo 3,’ took in more revenue on its first day of sales than the biggest opening weekend ever for a movie, ‘Spider Man 3,’ and even the final Harry Potter book’s first-day sales."

According to the Entertainment Software Association, an average of nine games were sold every second of every day in 2007.

comScore reported that video games, consoles and accessories experienced the most growth in the ecommerce category during the last three quarters of 2007. "The biggest online retailer,, reported its best holiday season ever in 2007 and attributed its success to the Nintendo Wii console," says Mr. Verna.

"Today, avid and casual gamers fall into a broadening array of demographic profiles," says Mr. Verna. "They might include middle-aged men who live out their latent rock and roll fantasies by playing ‘Guitar Hero,’ married women who get together with their friends to play Wii Table Tennis or retirees who play online board games with their grandchildren."