Game On: How brands are winning with in-game advertising

In today’s digital age, where mobile screens command more attention than any other medium, brands are constantly seeking new ways to connect with consumers where they truly live, play and engage the most. One increasingly effective route is in-game advertising. With Gen Z and millennials spending significant time immersed in mobile gaming, brands are tapping into these virtual worlds to meet their audiences on their own turf thus, seamlessly blending marketing with gameplay. 

From billboards in Free Fire to branded character skins in BGMI (Battlegrounds Mobile India), in-game advertising is now a full-fledged playbook move.

Several brands from Acer to Red Bull to even Garnier are now actively utilising in-game advertising to increase brand visibility. 

Sooraj Balakrishnan, Associate Director & Head of Marketing, Acer India said, “Gaming is no longer a niche—it's mainstream entertainment, especially among Gen Z and millennials. For Acer, a brand built on innovation and performance, this evolution felt like a natural space to lean into. Gaming is not only one of our strongest product verticals, but it also resonates deeply with our core audience.” He added that exploring in-game advertising was a strategic extension—just as brands advertise during live sports, they saw the value in meeting their audience where they are most engaged.

Balakrishnan said that even from a marketing standpoint, it fits perfectly with their digital-first approach. “Esports form a core part of our marketing mix, with nearly 15–20% of our overall marketing budget dedicated to gaming and esports-focused initiatives. One of our flagship efforts is the Predator Gaming League, a premier tournament series held across Asia Pacific. Each country hosts its own qualifiers, culminating in an international grand finale that rotates locations annually. With a prize pool of $400,000, the scale of this initiative reflects our deep commitment to the esports ecosystem,” he added.

According to many gaming and esports companies, even non-traditional brands are actively showing interest in this sphere. 

Krafton, which created the popular game, BGMI told e4m that they see growing interest from a wide range of brands from entertainment and tech to auto, fashion, and audio who are keen to tap into India’s gaming culture. 

Seddharth Merrotra, Head of Business Development, KRAFTON India, explained, “These aren’t just endemic gaming brands; we’re seeing non-endemic categories step forward, drawn by the massive youth engagement, multi-platform presence (including TV and OTT), and cultural momentum that a title like BGMI commands. What makes our partnerships stand out is our user-first, India-centric approach. Brands recognize that we don’t do superficial integrations. We co-create meaningful, in-game experiences whether it’s vehicles from Mahindra and HERO, audio tech from Dolby Atmos, or smartphones from realme, which powered the recent BGIS 2025 with high-performance devices and multilingual content across 8+ languages.”

He shared that their recent partnership with KIA India as the official mobility partner for BMPS 2025 reflects a strategic focus on enhancing tournament experiences, engaging fans both on-ground and online, and aligning with brands that share a long-term vision for Esports in India. In the lifestyle and entertainment space, collaborations like the inclusion of Deepika Padukone as a playable character in BGMI, complete with exclusive in-game content inspired by her, have resonated deeply with Indian players. Similarly, themed integrations with cultural icons like Hardik Pandya and Ranveer Singh have allowed for authentic storytelling that emotionally connects with the audience.

This was further reiterated by Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, who said that naturally, they work with endemic brands like HP and Logitech that have a direct fit in gaming. But increasingly, they’re seeing massive interest from non-endemic players - auto brands like TVS, men’s skincare brands like Garnier, fintech, even state governments who want to engage with Gen Z where they live, play, and compete. He added, “These brands aren’t just looking to advertise; they want to be part of the ecosystem through tournaments, creator campaigns, and immersive digital experiences.”

For Alpha Zegus, Rohit Agarwal, Founder & Director, shared that primarily consumer tech, F&B, BFSI, OTT, and youth fashion brands approach them for partnerships. In India, they’ve worked with brands like Red Bull, Airtel, Netflix, and OnePlus (not for in-game integration though). Globally, Nike, BMW, and Gucci are active. In fact, Gucci’s virtual store in Roblox saw over 20 million visits.

With so many brands actively engaging with this newer format of advertising, what exactly is driving this trend? 

According to Kumar Saurav, Co-founder & Chief Strategy Officer, AdCounty Media, Indian brands are utilizing in-game advertising for not just the reach but for the resonance. Mobile gaming users will exceed 568 million in 2024 (Source: Statista), so gaming is no longer just a niche—it’s a cultural fixture. Generation Z now spends more than 1.5x time gaming than they do on social media (Newzoo, 2023) prompting brands to re-think their media plans.

He further shared reasons for the same. First, non-interruptive (non-invasive) ad formats such as rewarded videos or in-game billboards that can blend within gameplay. Second, the precision of targeting their audience due to the emergence of hyper-casual and vernacular games. Third, the clarity of data performance via programmatic in-game DSPs in real-time rather than just reports of presence via in-game advertising. 

ROI factor

The Return on Investment (ROI) through in-game advertising is naturally very different from traditional mediums or digital campaigns. Balakrishnan said that while platforms like social media focus heavily on impressions, clicks, or traffic to a landing page, in-game advertising prioritizes depth of engagement and brand connection over surface-level metrics. 

He highlighted that they prioritize measuring brand lift, recall, and emotional resonance—essentially, how well players remember the brand and how strongly they connect with it after the interaction. He further shared an example - they assess time spent engaging with branded elements within the game, whether users interacted with a branded environment or feature, and the overall recall of their brand post-campaign. When they do deeper integrations, these insights become even more powerful.

Balakrishnan said, “we also look at broader impact metrics, such as an increase in share of search, a strong indicator of rising brand interest driven by in-game exposure. These indicators reflect a more meaningful, long-term relationship with the audience, especially within the tech-savvy gaming community, which aligns well with our target demographic.” According to him, the return on investment here is measured by the quality of the brand experience and the depth of engagement, not just the number of impressions, but how meaningfully the audience connects with their message.

Meanwhile, Saurav explained that in-game ads do influence offline purchase behavior and does not only build brand salience. 

He said that in-game advertising is shifting from salience to behavioral action. A Unity Ads report released in 2023 found 28% uplift in offline intent for consumers reported after in-game exposure—with the results particularly favorable for CPG and fashion brands. The most important finding is ‘how native’ the consumer feels the brand is in the game. 

“A digital billboard in a racing game might plant a cognitive seed in a player's mind, whereas an impression in a reward ad with an added benefit (e.g., cashback or coupon structure in partnership with Paytm, Amazon or Swiggy) has a greater chance of converting the player into an action. With Gen Z's power of digital play, this transition from screens to groceries is effortless: 70% of Gen Z consumers cite games as a substantial source of discovery for real-world products (Kantar x Activision, 2023),” Saurav said, adding that coupled with India's increasing ad-to-commerce technology investment, it will be increasingly easy to pull a CTA (call to action) directly from a game. 

According to him, at the moment, recall and affinity metrics are king and the only feedback that marketers are interested in. In the future, it may feel hybrid; salience with short-term performance. The ad may sit inside of a game, but impact may take up all the space inside of the shopping cart.

Monetization or engagement tool?

Now that it is established that in-game advertising does provide substantial ROI to the brands, does it mean that it is also now a mainstream revenue driver for the gaming platforms? According to experts, it still has a long way to go. For now, most of them are focusing on driving meaningful collaborations that are mutually beneficial. 

“Brand collaborations are a key pillar of our strategy to mainstream gaming culture and expand its influence beyond traditional gaming boundaries. At Krafton India, we actively partner with brands across entertainment, technology, fashion, and automotive sectors to create culturally resonant experiences within our games,” said  Merrotra.  

He further shared examples - collaborations with public figures and brands have resulted in unique in-game assets, character skins, and themed events that reflect Indian sensibilities. From integrating local flavors in games like CookieRun India to bringing recognizable personalities and lifestyle elements into BGMI, these partnerships help position gaming as a vibrant part of India’s cultural and digital fabric. They also serve as a bridge connecting gaming communities with mainstream audiences and creating new avenues for engagement, especially among younger users. 

Meanwhile, for Nodwin, IP ownership, media rights, brand sponsorships, and creator-led storytelling continue to be the core drivers of monetization with in-game ads acting more as an extension of the overall engagement strategy. “At Nowdin, we don’t make games, but we’ve facilitated in-game brand integrations in the past like our Mountain Dew collaboration as part of broader brand solutions. In-game advertising isn’t something we treat as a standalone revenue stream. It's one of several tools we deploy to help our partner brands reach their audience effectively,” said Rathee. 

However, according to Mikhail Bhuta, Co-Founder & Tech Lead, Dirtcube Interactive LLP, in-game ads have gone from nice-to-have to essential, especially in free-to-play games. He added that for many mobile titles, ad revenue rivals or even surpasses in-app purchases, because it monetizes player attention, not just spending power.

“Rewarded ads, in particular, strike the perfect balance: they offer players real value and keep them engaged, while generating consistent revenue,” Bhuta added. 

Balancing act

It also becomes very crucial for the platforms to provide seamless ad integration during the games to avoid overwhelming the audience, especially in a category like esports wherein the consumer is hooked and does not look forward to engaging with ads. 

“Striking the right balance is everything. Too intrusive, and you risk annoying players. Too subtle, and you fall into the trap of banner blindness. At Nowdin Gaming, we focus on building contextual brand integrations that respect the gameplay loop,” said Rathee. He added that when they facilitate in-game advertising or partner-led content, the experience must feel additive, not interruptive. The goal is always to ensure that monetization doesn't come at the cost of immersion, especially when dealing with an audience that’s deeply passionate and quick to tune out anything that feels forced.

Similar thoughts were echoed by Merrotra, “Every collaboration is designed with gameplay in mind. Whether it’s introducing vehicles like the Xtreme 125R or Mahindra’s BE 6 SUV as rideable assets or adding Alan Walker’s “Hero” as lobby music, our focus is on immersive, value-driven integrations. These elements feel like natural extensions of the BGMI universe, not bolt-on promotions.”

He further illustrated this approach with a recent collaboration with Sting. Instead of opting for traditional ad placement, Sting was integrated as the official in-game energy power-up, offering players a tangible in-game advantage while reinforcing the brand’s identity through its signature energy burst—seamlessly blending functionality with brand storytelling. This is a prime example of how brand integration can enhance gameplay without disrupting immersion. 

Additionally, partnerships with leading tech and audio brands like Dolby Atmos help elevate the sensory experience, making gameplay more immersive and premium. With India at the heart of their strategy, collaborations such as bringing Deepika Padukone into the game as a playable character help connect with players at a cultural and emotional level. For us, Merrotra said, monetization is not a separate layer, it's woven into the gameplay fabric, supporting storytelling and keeping BGMI deeply rooted in Indian culture.

This was also explained by Bhuta who said that the trick lies in smart placement and player-first design. Think rewarded videos that offer meaningful value, or native ad formats that blend into the game world without pulling players out of the experience.

“In our mobile game GameStarz, we integrate brands through billboards and sponsorships that complement the metaverse experience rather than disrupt it. This approach creates value for both players and partners while maintaining the gameplay integrity that's essential for connecting with today's Gen Z audience,” he said. 

Future outlook

Experts believe that in-game advertising will continue the momentum that it has built so far with much more speed. According to them, this space in the coming years will even begin to attract advertisers just like traditional sports. What once seemed like a gamble has evolved into a measurable, ROI-driven component of the media mix. 

“Advancements like 5G and high-performance mobile devices are making competitive gaming more accessible, especially on mobile, broadening the audience and platforms for brand engagement. In the next 2–3 years, we expect more sophisticated ROI tools, deeper AI-driven integrations, and a continued focus on organic, experience-led placements that preserve the integrity of gameplay,” said Balakrishnan, adding that ultimately, authenticity will be key. Gamers are highly engaged and discerning; forced or disruptive ads won’t work. But done right, in-game advertising offers unmatched immersion and brand recall, making it a powerful tool as space matures. 

According to Saurav, the proliferation of branded virtual experiences will take place, and users will be able to interact with complete digital stores, experience virtual concerts, or engage their avatars in digital fashion try-ons. India is winding down a 5G rollout, and mobile devices are set to hit 1.1 billion users by 2026 (Ericsson Mobility Report) creating a robust opportunity. 

He added that real-time customized experiences will also bring a new phase of engagement - using AI advertising will be able to dynamically render ads in real time based on a user's engagement and preference. There will also be formats that are crossovers between game streaming and esports and specifically will be able to collaborate with the influencer aspect: hybrid campaigns mixing game-play, influencer shoutouts, and live commerce. The new frontier is Ex. Playable commerce where users can sample products within the game as mini games and have a one click purchase experience. 

“As gaming evolves into a next generation social network, brands that don’t think about impressions but experiences will dominate this space. It will not be whether you are in the game, but how immersive your brand story is,” Saurav concluded.