Gaming ad growth hits 12% after RMG ban; festive spends up 30%

Gaming advertising is emerging as a faster-growing part of the digital festive media mix, with industry executives estimating that the category grew 12% in 2025 despite the disruption to real-money gaming (RMG), and festive season spends likely to rise by 15–30% this year. 

The growth is being driven by a broader advertiser base spanning FMCG, consumer durables, e-commerce, quick commerce, fintech, automotive, telecom, technology and entertainment. This signals a shift in gaming from experimental activations to a more planned component of brands’ media budgets.

Rohit Potphode, President - Sports, Gaming, Entertainment & Influencer Marketing, dentsu India, said gaming is taking a relatively larger share of the digital festive mix, with typical gaming allocations increasing by approximately 20–30% over last year.

Read earlier report: India's gaming ad market to cross $500 million by 2029

“For categories with a natural affinity to younger audiences, digital consumers and technology-led experiences, the increase can be considerably higher. That is a fundamental shift in media maturity. Gaming is being evaluated alongside social, video, influencer, OTT and commerce platforms, not simply as an innovation layer sitting outside the core media plan,” he said.

From test budgets to planned spends

The increase is also accompanied by a change in campaign strategy. In 2025, gaming campaigns were often characterised by pilots, short-duration activations and engagement-focused KPIs. This year, agencies are seeing larger campaigns, longer engagement periods and greater integration with social media, creators, video, entertainment and commerce.

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Amyn Ghadiali, Country Head, Gozoop Creative, estimates festive gaming spends are up around 15–20% year-on-year in 2026, compared with overall festive advertising expenditure growth of roughly 10–12%.

“The more telling number is structural: gaming advertising itself grew 12% in 2025, even as the category absorbed the RMG disruption. So this year’s growth is less about a festive spike and more about gaming finding a new, more diversified advertiser base. The category is no longer borrowing relevance from RMG; it is building its own,” Ghadiali said.

For brands already active in gaming, he estimates the increase in allocations at roughly 15–25%, with the bigger shift being from test budgets to sustained investment.

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The change is particularly relevant during the festive period, when brands compete for consumer attention across digital video, social platforms, e-commerce and connected television. Gaming offers another environment where advertisers can seek longer engagement rather than relying only on conventional impression-led formats.

RMG disruption reshapes advertiser base

The expansion of mainstream advertisers comes against a structural change in India's gaming ecosystem following the shutdown of real-money gaming.

RMG operators were historically among the biggest advertisers in the digital ecosystem. Their reduced presence has created a gap in gaming advertising, but has also pushed publishers, developers and gaming platforms to seek a broader mix of advertisers and monetisation models.

Abhishek Malpani, Founder and CEO, Funcell Games, said the ban on Real Money Gaming has significantly altered India's gaming advertising ecosystem.

“While RMG operators were themselves major advertisers, some are now transitioning towards free-to-play, advertising-supported models. This creates opportunities for mainstream brands across e-commerce, FMCG, consumer electronics and entertainment to engage gaming audiences,” he said.

The resulting advertiser base is more diversified. FMCG and consumer brands can use gaming for reach and engagement, while e-commerce and quick-commerce companies can connect advertising with commerce. Technology, telecom and consumer electronics brands also have a natural fit with gaming audiences because of their overlap with younger and digitally active consumers.

Free-to-play models gain importance

The shift towards free-to-play and advertising-supported gaming is also changing the economics of the sector.

Kashyap Reddy, Co-Founder and CEO, Metasports Interactive, said that as the time people spend on RMG games spreads across other gaming experiences, games that offer deeper engagement and retention are likely to benefit.

“Being a free-to-play game, with revenue driven by in-app purchases from players who see genuine value in enhancing their gaming experience. This creates a strong connection between engagement and monetisation, as players choose to spend when they have a deeper interest to progress, personalise, and get more out of the game,” he said.

For advertisers, this creates an opportunity beyond buying impressions. Games can provide environments where consumers spend extended periods, interact with content and participate in experiences.

As a result, the next phase of gaming advertising could move beyond conventional display and video placements towards deeper integrations within games and gaming communities.

The GDAI spokesperson said brand partnerships and in-game advertising can create new revenue streams while helping developers fund games, sustain teams and reach wider audiences.

“Beyond advertising, brands can enable co-created experiences, branded challenges and content built around Indian festivals, culture and stories. As gaming audiences compete with short-format video consumption, this is an opportunity for both industries to cross each other and tap into consumers,” the spokesperson said.

For Indian studios, such partnerships could also provide an additional revenue stream at a time when the industry is adapting to the post-RMG environment.

“Successful partnerships can combine local cultural insight with brand reach provided they respect the player experience and create fair value for studios,” the spokesperson added.

Gaming moves deeper into media plans

The broader shift is that gaming is increasingly being considered as a media environment rather than simply a gaming-industry marketing opportunity.

The festive season could accelerate this transition as brands seek incremental digital reach and interactive formats. If the higher allocations seen this year translate into sustained spending beyond the festive period, gaming could enter 2027 with a larger and more established role in advertisers’ media plans.

For the gaming industry, the significance extends beyond advertising revenue. A broader advertiser base can provide developers and platforms with another monetisation stream as the sector adjusts to the post-RMG environment.

The key question is whether the 15–30% increase in festive gaming allocations becomes a one-season spike or establishes a higher baseline for gaming's share of India's digital advertising market.