In-game advertising forecast to grow to over $1 billion in the next five years

Screen Digest has just released a report covering the in-game advertising market in detail.

The report focuses on dynamic advertising (i.e.: that which uses proprietary networks like those operated by Massive, IGA and Double Fusion) and views them as “virtual out-of-home display formats.” This suggests that the $1 billon figure excludes:

• Product placements
• Advertising revenue generated by casual and social network games such as those operated by Gameforge, Bigpoint and Playfish
• Games paid for and created by brands

Screen Digest forecasts that dynamic in-game advertising will take approximately 1.5% of the global digital marketing budget, implying that the global digital marketing budget is approximately $66 billion by 2014.

To put that figure into context, 2008 digital adspend in the UK was £3.3 billon (source: Internet Advertising Bureau) and US internet in the US was $23 billion (source: IAB).