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Real Reason Why Gaming Companies are Acquiring Adtech Firms

PUBLISH DATE: 19 July 2022

The user base for gaming industries has exponentially increased in the year 2020. According to Statista, the value of the gaming industry could be worth 1500 crore by the year 2024. In 2022, gaming companies are making their pitch even stronger with the help of advanced targeting options for their advertising and acquiring adtech firms to help them achieve their set targets.

With better targeting, gaming companies are able to sell more inventory at better prices and also able to capture new brands to advertise on various digital platforms.

First-party data is the future of marketing, as Google is soon going to remove third-party cookies. In previous years, some ad platforms have had a limitation to fully leverage the power of this data. However, in today’s time, adtech companies are putting this at the centre stage and M&A is helping to fuel this motive.

In January 2022, Nazara Technologies Limited announced that it has made an agreement to acquire a 55% stake in programmatic advertising. Likewise, monetization company, Datawrkz, acquired a 33& stake in the first tranche by April 2022 and reserved an option to an additional 22% for the second tranche.

Through these acquisitions, companies like Nazara, Microsoft, Zynga, and Datawrkz can track first-party data from their in-house game studios, and add more first-party data. The gaming companies can then use two sets of data to refine and scale both businesses – which are – the gaming and media sides.

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Nazara Technologies CEO Manish Agarwal in an interview said that “Adtech companies with deep data processing capabilities and first-party data ownership will emerge as winners in gaming-focused adtech.”

With the gaming content market in the US expected to reach anywhere between $25 billion in 2022, and US mobile ad spending to exceed $160 billion this year, it is just the beginning for both gaming companies and adtech firms to reach new heights.