61% of US Gen Alpha children spend 2 or more hours daily on mobile devices, the highest multi-hour usage rate across all platforms, according to August 2025 data from Morning Consult.

Microsoft’s in-game advertising dream gets its first test via two minutes of preroll ads per hour of cloud gaming playtime.

Gaming ads offer high engagement in a market that is underutilized relative to its potential.

This report presents five of the most intriguing and/or under-the-radar forecasts for 2026 that businesses should be aware of, as compiled by our forecasting team.

“Gaming is one of the most engaging channels, and what makes it particularly interesting is its ability to convert taps into transactions,” said Maya Kosovalic, vice president of marketing at L’Oréal-owned NYX Professional Makeup during Advertising Week New York.

Xbox plans to add a free ad-supported tier to its Xbox gaming subscriptions, per The Verge. Employees currently have access to testing ahead of a public beta. Test features include two minutes of pre-roll ads before gamers gain access to Xbox Cloud Gaming and a one-hour time limit per session. Nearly half (46%) of gamers often make purchases based on in-game ads. Marketers should focus on influencer-led campaigns that play up gaming and personalization. If ads feel more like a buddy joining them in the living room rather than an interruption, gamers are less likely to be irritated.

Despite its $999.99 price tag, the ROG Xbox Ally X is selling out, showing there’s still strong consumer interest in on-the-go gaming experiences. Preorders for the handheld gaming console sold out Friday, per Xbox. Xbox console prices are inching up at a not-so-subtle rate—with two price bumps this year—undercutting the old adage that waiting to purchase until post-launch leads to lower costs. Companies should bundle experiences, not just hardware, lean into mobility features, amd address price increases head-on.

LG Electronics will integrate Xbox into its vehicle infotainment systems, allowing passengers to play games on the road, per Engadget. At the same event, IAA Mobility 2025, LG announced plans to incorporate Zoom, integrating a user experience that will allow drivers to participate in meetings without added distraction. LG’s integrations open up new in-vehicle advertising opportunities within premium ad formats, including in-game inventory. With LG’s data, brands will be able to geotarget the gaming and productivity demographics while they’re on the move—opening opportunities for gas stations, restaurants, and brick-and-mortar stores.

Social media (27%) and streaming video (25%) have the highest percentage of time spent on gaming-related content, per May 2025 data from Bain & Company.

The news: Audio ad platform Odeeo and content creation platform Wondercraft today announced an in-game audio ad partnership that will allow advertisers to craft audio ads in multiple languages in minutes. The partnership will integrate Wondercraft’s AI-powered creative production tools with Odeeo’s in-game audio solutions, with features to craft, localize, and personalize content. Our take: Odeeo and Wondercraft’s collaboration promises potential, capitalizing on the steady trajectory of time spent with gaming while accounting for gamer preferences for ads that are non-intrusive and integrate with the game’s environment.

The news: Gamers are more involved in gaming content than ever before, thanks in large part to titles like Roblox, Minecraft, and Fortnite. And they’re not keeping that interest solely on-platform. 46% of gamers say their time spent creating in-game video game content has somewhat or significantly increased over a year ago, per Bain & Company’s Gaming Report 2025. About 20% say they spend less time. 27% of gamers’ social media time and 25% of their streaming video time is spent focused on gaming-related content. Our take: The gaming audience is growing, and it’s not focused on a single platform or console. Gamers’ interests reach through the game and into social media, streaming, TV, and audio, giving marketers a wide path to reach gamers where they are.

Netflix's Q2 2025 earnings results came in at $11.1 billion in total revenues. The company’s shift away from reporting net subscriber growth now places investor focus squarely on margins, ad performance, and global monetization. While churn remains low and its brand strong, Netflix faces growing competition from YouTube and TikTok for user screen time. With hit content, live sports, and gaming on deck, the streaming giant’s next act will test its ability to monetize an already massive user base while retaining cultural dominance. For Netflix, growth now means doing more with what it already has.

The news: Despite its massive reach, gaming still accounts for less than 5% of worldwide media investment, per Dentsu’s 2025 Gaming Trends report—indicating a disparity between where audiences spend their time and where advertisers invest. Our take: Concerns about brand safety with in-game advertising linger, but brands that are willing to take the risk stand to gain through an approach that considers that simply investing in the format isn’t enough to drive results.

Total time spent with media per day in the US is no longer growing meaningfully, but there will still be significant churn between devices, activities, and platforms as consumers choose how to spend their time.

The news: Gaming is becoming a powerful vehicle for delivering ads to engaged audiences, with gamers spending significant time gaming across platforms, per a study from Activision Blizzard Media. Seventy percent of gamers play or watch video games daily, while 95% play or watch weekly. Seventy-seven percent of weekly gamers play on mobile devices, while 52% play on console and 34% play on PC. Our take: In-game advertising provides reach that few other channels can match, connecting with an engaged, highly attentive, and diverse audience, making it a critical touchpoint—but advertisers must understand what strategies work best.

The news: The gaming industry is doubling down on handheld consoles. Nintendo’s Switch 2 shattered single-day sales records with an estimated 3 million units sold at launch, outpacing the Sony PS4’s historic numbers. Meanwhile, Microsoft announced its first handhelds—the ROG Xbox Ally and the ROG Xbox Ally X—partnering with Asus to blend Xbox and PC gaming in a portable format. They’re expected to launch during the holidays. Our take: As cloud and console experiences merge into portable form, game design and ad models are set to evolve fast—opening up fresh real estate for marketers, game studios, and tech platforms alike.

Discord’s platform is built for participation, not passive content: Brands face high standards—and high rewards if they succeed.