The video game industry spent over $45 million in ad spend during the first two weeks in November, an 80 percent increase year-over-year, according to MediaRadar’s latest research.
The surge coincides with the new Xbox Series X and PlayStation PS5, which were released on November 10 and November 19, respectively.
Leading up to the launch of PS5, Sony spent over $15 million on advertising the console—more than triple what Microsoft spent to advertise Xbox Series X.
The launch of the new consoles inspired growth among other gaming brands and sections. For example, despite not releasing a new console, Nintendo’s ad spend from November 2 to 15 was 138 percent higher than the two weeks prior.
During that same time, the release of Call of Duty Cold War and Assassins Creed Valhalla resulted in a 76 percent increase YoY in ad spend from video game titles.
Game retailers ramped up ad spend by 28 percent YoY and mobile app games saw ad spend increase 23 percent YoY.
The game industry’s ambitious spending comes as video game players play for longer hours and across more devices. According to NPD Group’s Q3 report, consumers spent $11.2 billion on video gaming in Q3, a 24 percent increase YoY. During the same period, sales of video game content reached $10.04 billion, up 24 percent YoY.
At the end of November, NPD found that four of every five US consumers reported playing a video game in the past six months. Nontraditional gamers in particular have taken a liking to video games during the pandemic. According to NPD, time spent gaming for those between the ages of 45 and 54 increased 59 percent while dollar spend increased 76 percent. Gamers ages 55 to 64 increased time and money spent by 48 percent and 73 percent, respectively.
