Why In-Game Ads Are Essential for Reaching Gen Z

In light of recent industry forecasts shared by AdExchanger, the potential disruptions of both a TikTok ban and a Google Ads breakup are causing brands to rethink their 2025 digital strategies. As marketers brace for these potential changes, one thing is clear: advertisers will need to explore new avenues to effectively reach critical audiences, especially Gen Z. One highly effective yet often underutilized solution that should be front and center in these discussions is in-game advertising.

Why In-Game Ads Are Key for Gen Z

Gen Z, more than any other generation, is immersed in digital ecosystems where gaming plays a central role - in fact, they spend 5x as much time in social video games than they do on social media . From casual mobile gaming to more immersive PC and console experiences, this demographic spends a significant portion of their time in virtual worlds. For advertisers facing the possibility of losing access to major platforms like TikTok or Google Ads, in-game ads present an incredible opportunity to reach Gen Z where they are most engaged, while offering unique, interactive experiences that other advertising mediums just can’t match.

Here’s why in-game ads are a smart move:

1. High Engagement Rates: Gen Z doesn’t just passively consume content; they expect interaction. In-game ads, whether they’re branded skins, interactive videos, or rewarded content, allow advertisers to reach these users at moments of high engagement. The immersive nature of games ensures that users are more likely to interact with ads rather than scrolling past them.
2. Non-Intrusive Advertising: Unlike traditional ads, in-game ads can be seamlessly integrated into the gaming experience, making them feel organic rather than disruptive. This is key for Gen Z, a demographic that has low tolerance for disruptive advertising. In-game ads blend with the content in a way that feels natural.
3. Precise Targeting Capabilities: In-game advertising platforms, like Prado’s, offer precise targeting, enabling advertisers to reach specific demographics based on behavior and gaming preferences. In-game ads offer the ability to segment audiences with precision, something that may become harder to do if TikTok or Google Ads face disruptions.
4. Growing Market: The gaming industry has seen explosive growth in recent years, and the trend shows no sign of slowing down. According to data, gaming is now one of the largest entertainment sectors globally, with Gen Z making up a significant portion of this audience. By tapping into in-game ads, advertisers can take advantage of a rapidly growing platform that is increasingly defining how younger generations spend their time.

“A 2024 study from YPulse reveals teens in the US and Canada are spending more time gaming than watching TV – and 68% agreed they find video games more entertaining than TV shows or movies.” (source: YPulse.com)

With the potential shifts in the digital advertising landscape, it’s critical that advertisers diversify their ad spend and explore new platforms to maintain meaningful connections with their audiences. In-game advertising is not just a stop-gap solution: it’s a powerful, engaging, and scalable way to connect with Gen Z, a generation that values immersive, interactive experiences.

Let’s work together!