Online Video Game Spending To Hit $13 Billion

    June 5, 2007

Spending on online video games will reach $13 billion globally by 2012, up from $4.5 billion in 2006, according to DFC Intelligence’s "Online Game Market Forecasts" report. For marketers that want to reach gamers that is welcomed news.

Advergames such as the 3.2 million units sold at Burger King over the holidays have been successful and in-game placements have music labels wanting exposure in the newest sports games.

DFC’s forecast is also good for digital distribution, which will reach 40 percent of online gaming spending by 2012, accounting for $1 billion in annual console gaming revenues worldwide.

eMarketer estimates that global spending on in-game advertising and advergaming will increase by a compound annual growth rate (CAGR) of 22.9 percent from 2006 to 2011. Close to 50 percent of this spending will come from the U.S., where the CAGR over the same period will also be 22.9 percent.

Marketers can expect more game types that contain online ads, like casual games, online games and massively multiplayer online games.