Global gaming industry 2023 revenue at $350 bn, to reach $500 bn by 2027: Dentsu-LOCO
India today is the world’s second largest gaming market, however, in terms of app downloads India is the world’s largest mobile gaming market. Emerging technologies such as Augmented Reality, Artificial Intelligence, wider implementation of 5G, etc., are poised to usher in a new renaissance in the country’s gaming industry.
At the same time, the industry is also facing some challenges – the most pertinent of them being the 28% GST for the gaming industry. There are also legal issues, wherein the courts in some states are banning some formats of money-based gaming and often the demarcation of skill-based and online betting games is blurred.
The third edition of GAMEXX 2023 was held on Friday, September 15, amid such a dynamic scenario and aimed to explore the new frontiers in gaming. In a short period, GAMEXX has come to be a hub where professionals, enthusiasts and industry leaders converge to celebrate the limitless potential of gaming.
GAMEXX 2023 saw the release of a White Paper on ‘In-Game Advertising & Monetisation’, which is a joint endeavour of Dentsu Gaming and LOCO. Adgully has partnered with Dentsu Gaming and LOCO for this White Paper.
Megha Nair, SVP, Digital Media Planning, Carat India, and Prakhar Toshniwal, Senior Manager, Brand Partnerships, LOCO, presented some key findings from the White Paper.
At the outset, Prakhar Toshniwal shared an insightful overview of the gaming industry, shedding light on its stakeholders, monetisation strategies, and the expectations post-implementation of these strategies and campaigns. Toshniwal noted, “In 2023, the global gaming industry amassed a staggering $350 billion in revenue, surpassing the combined earnings of the music and movie industries. Projections indicate that this figure is set to soar to an impressive $500 billion by 2027.”
Continuing further, he said, “The primary driving forces behind this industry’s remarkable growth include widespread smartphone adoption, innovative monetisation models, a shift toward gaming for entertainment, and underlying macroeconomic factors. These global trends are mirrored in the behaviour of Indian consumers. It is estimated that by 2027, half of the population will be active gamers, with an impressive 24% conversion rate to paying users among 500 million gamers.”
Speaking about Dentsu’s unique approach to the gaming sector, Megha Nair said, “At Dentsu, we recognise that gaming demands a distinctive approach, given the significant amount of time consumers spend on gaming platforms. Dentsu Gaming serves as a strategic advisor in the gaming realm, offering subject matter expertise and guidance in navigating the complexities of the gaming landscape within our clients’ ecosystems.”
Nair also shared another intriguing perspective, stating, “Behind every impactful piece of content lies a deep understanding of the consumer and their behaviour. Dentsu invests in gaming-specific research, meticulously studying and reacting to the intricacies of gaming sites. As a result, brands can now access highly detailed profiles of gamers, encompassing their lifestyles, fashion preferences, routines, hobbies, and even random interests.”
This comprehensive approach to the gaming industry ensures that brands stay ahead of the curve, harnessing the vast potential of this ever-expanding and dynamic market.
These are edited excerpts. For more key revelations and statistics from the White Paper, please watch below: