Spending on in-game ads is set to reach $1 billion by 2014, representing about one and a half percent of total digital advertising spending, according to a new Screen Digest report.

The research firm predicts that a combination of audience media habits and dynamic in-game advertising - which enables advertisers to alter ads within game environments remotely - will drive the growth in spending, reports MediaWeek.

"There are many ways in which advertising can help evolve business models for videogames and we have only just begun to explore that potential,” said Adam Smith, futures director at media planning and buying operation GroupM, which was surveyed by Screen Digest as part of its new report, In-Game Advertising: Market Assessment and Forecasts To 2014.

“Given gaming is now a mainstream leisure interest, in-game deserves the same consideration as mobile and social media," Smith added.