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In-Game Advertising Study by ARROVA and Hakuhodo DY Holdings

In a groundbreaking survey carried out by ARROVA Co., Ltd., based in Shibuya, Tokyo, and Hakuhodo DY Holdings Co., Ltd., based in Minato, Tokyo, a comprehensive analysis of in-game advertising has been conducted. Targeting 2,860 individuals aged between 15 and 49 across Japan, this study aims to understand the media impact of ads positioned within gaming and metaverse environments. The findings reveal a substantial increase in consumer purchasing intent and positive word-of-mouth within community settings triggered by in-game advertising.

Key Findings from the Study

Awareness of In-Game Advertising

The survey assessed whether users of smartphone games, game-related metaverses (like Roblox and Fortnite), and social VR platforms (such as VRChat) had encountered either in-game or out-of-game advertisements. Impressively, awareness of in-game ads was approximately 80% among smartphone and social VR users, while about 50% of gaming metaverse users recognized such advertisements, indicating a significant presence of in-game ads.

Transformative Impact on Consumer Attitudes

Post-exposure to in-game ads revealed that they are as effective, if not more so, than traditional digital ads in influencing consumer behavior. Social VR environments showed notably high rates of ad sharing among acquaintances, enhancing the viral potential of marketing efforts. Specifically, ads positioned on walls, signage, and buildings in social VR environments stimulated a 11.3% purchasing intent, significantly surpassing a mere 6.8% for in-app banner ads typically seen in conventional digital marketing.

High Acceptance of In-Game Advertising

When evaluating user sentiment towards ads displayed on virtual walls and signs within games, the percentage of users who found these ads annoying or intrusive was relatively low: approximately 11.3% among smartphone game users compared to 19.4% for standard pop-up ads during app usage. This suggests that ads integrated into the gaming environment are less likely to interrupt gameplay, leading to higher acceptance levels. Notably, smartphone game spenders were particularly receptive, with 65.7% agreeing that contextually relevant ads enhance the gaming experience.

Persona Insights of Exposed Consumers

The study also delved into the demographics and behaviors of those interacting with in-game ads, revealing distinct persona types:
1. Smartphone Game Users: Primarily young, working males enjoying brief gaming sessions, heavily influenced by traditional media rather than social media for purchasing decisions.
2. Game Metaverse Users: Students and working parents who enjoy RPGs and action games, often using in-game ads as buying triggers.
3. Social VR Users: Tech-savvy individuals in their late twenties with a penchant for strategic games, inclined to collect information independently and actively engage with content creation.

Conclusion and Considerations

The analysis confirmed that in-game advertisements not only achieve recognition levels comparable to traditional digital ads but also elicit a lower incidence of annoyance. Moreover, in-game ads effectively enhance the likelihood of purchases and facilitate brand discussion among users. However, as an emerging medium, in-game marketing faces challenges, including lower reach compared to traditional ads and immature effectiveness measurement methodologies. For optimal results, it is advisable to integrate these ads with conventional digital marketing strategies and conduct brand lift studies to gauge their impact effectively. Looking ahead, ARROVA and Hakuhodo DY Group remain committed to researching and implementing innovative advertising strategies that acknowledge these challenges while harnessing the growing significance of in-game advertising in the market.

Survey Overview

• - Methodology: Online survey
• - Date conducted: January 2026
• - Target area and responders: Nationwide survey of 15-49-year-old men and women
• - Conducting agency: Macromill, Inc.
• - Number of valid responses: 2,860 participants after a pre-screening of 50,000 samples.

Company Overview

ARROVA offers unique marketing solutions as Japan's first dedicated game media marketing agency, part of the Hakuhodo DY Group. They provide innovative in-game advertising strategies to seamlessly integrate clients' brands into gaming environments. Their services include reward-based ads within games, CGI and AR content creation, and the development of digital fashion marketplaces.

For further inquiries, please reach out to:

• - ARROVA: [email protected]
• - Hakuhodo DY Holdings: [email protected]