PubMatic has released a study titled 'Brand & Mobile Gaming: What the shift of brand spend into mobile gaming means for publishers', finding seven in 10 marketers are incorporating in-app ads into their marketing strategies.

The digital advertising technology company's study surveyed brands and agencies in Singapore, Japan, and South Korea, examining their mobile and in-game ad buying preferences, challenges, and plans for 2024. The study was commissioned by PubMatic from Milieu Insight.

According to the study, 70% of marketers in the surveyed countries incorporate in-app ads into their marketing strategy. Performance-focused buyers are more likely to advertise in-app than brand buyers, at 77% and 60% respectively. Moreover, 62% of advertisers prefer to buy in-app advertising through programmatic platforms.

The study also revealed geographical differences in in-app ad buying. For example, 88% of Singaporean buyers are most likely to buy in-app, while Japanese buyers are doing far less in-app buying, at just 47%.

Brand awareness was identified as the leading benefit of in-app advertising, regardless of primary advertising objectives. Furthermore, 52% of the APAC marketers surveyed have an in-game marketing strategy. However, this figure drops to 15% for Japanese marketers, compared to 77% of marketers in Singapore.

The report also indicates a shift towards mobile game advertising, with half of marketers spending on in-app ads also investing in mobile gaming ads. However, barriers remain. The main reason for not investing in mobile gaming ads is misalignment with company or brand values, or misalignment with target audiences.

Of the APAC marketers surveyed, 52% have an in-game marketing strategy. In 2024, 86% of in-game advertisers in Singapore and 80% in South Korea plan to increase, or maintain the same budget for in-game advertising. However, Japanese marketers are hesitant to go all-in on in-game advertising due to concerns around audience alignment.

"The findings show there are more chances than ever for in-app publishers to attract ad spend from brand buyers looking to invest in mobile gaming. But, in today’s increasingly complex and dynamic landscape, it will be vital to work with a tech partner that can provide transparency, control, flexibility and guidance if they are to unlock the full potential of in-app and in-game advertising and capture incremental dollars from diverse channels and geographies in 2024." said Lashanne Phang, VP, Mobile at PubMatic.

"When choosing a tech partner, app publishers should look for a company that provides unique demand and effective measurement tools, while offering customised, curated packaging to ensure control over audiences, inventory and data."