Maybe it’s a sheer coincidence, but combining the recent NPD numbers regarding consumer electronics consumption habits, and the extremely positive outlook on virtual worlds recently published by Strategy Analytics things are already looking good.  Well hold onto your hats, as both Citi and PricewaterhouseCoopers published even more news to get pretty jazzed about.

Citi

According to a recent Gamasutra piece, a research note by Citi indicates that the In Game Advertising market could reach the $1 billion mark by 2014.  Citi sees the most online advertising growth coming out of the gaming sector, which currently stands at around $600 million.  An impressive number for sure, however, it accounts for only roughly one-third of the total online advertising spend, $20 billion.

According to analysts, today’s average gamer is 35 years old, with 40 percent of “total gamers” being female.  Obviously, this is a highly attractive audience to advertisers.  Citi says that in game advertisements “have higher engagement and slightly higher [cost per thousand users, representing value] than traditional banner ads.”

And this advertising isn’t simply limited to a Doritos banner on the side of an in game truck.  Citi says that this advertising is also tying into the separate trend of microtransactions, as real world brands are setting up shop in virtual worlds.  Looking at high profile, tangible examples, Citi points to both Apple and Tencent’s investments into microtransactions, and gives a thumbs up to the segment, calling it a potential “multi-billion dollar opportunity.”

PricewaterhouseCoopers

Recently releasing their Global Entertainment & Media Outlook 2009-2013 report, financial firm PricewaterhouseCoopers is calling the US and Canadian game industry revenues for 2009 at or around the $17.2 billion mark.  In this report, the “Game Industry” is defined as console, handheld, PC, and mobile game software sales, subscription fees, and in-game advertising (no microtransactions???).

PWC predicts that these game industry revenue streams will collectively post average annual growth rates of 5.8 percent through 2013, at which point we’re looking at an estimated $21.6 billion.  Looking outside North American waters, PricewaterhouseCoopers expects to see a global compound annual growth rate of 7.4 percent, pushing total numbers to a massive $73.5 billion in 2013.

Included in the report, and cited as a driving force behind these numbers is their prediction of the release of the next-gen console, first appearing in 2012.  PWC predicts that Nintendo will arrive on the scene first, particularly due to the Wii’s inability to output HD graphics.

Echoing Citi’s statements about IGA, the firm notes that this is a particularly strong segment of the market.  PWC places today’s in-game advertising spend at $886 million (could we agree on $743 million?), but sees at 13 percent annual growth rate over the next five years, placing the spend at $1.3 billion in 2013 (again, maybe we can settle on $1.15 billion?).