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Thursday, June 15, 2006

In videogame advertising predictions


Cnet has a good overview of the in game advertising forecast. It predicts that advertising expenditures will hit 400 million by 2009 and that gaming, and gaming advertising, will become increasingly geared towards families playing together. One fascinating stat: "For every $50 a month spent on TV advertising per gaming household, only 10 cents is spent on advertisement-supported gaming content."

The article view is that advertising is lagging consumer behavior in this area which is probably true. However, it's a risky area for brands as consumers won't be as tolerant of advertisers ruining their experiences here as they are in other mediums.

3 comments:

John said...

There actually has been fairly postitive reactions from gamers for the current model of in-game advertising, which is the equivalent of product placement. For many of them, a McDonald's billboard in a game actually makes it more realistic, since the alternative is some made-up company.

But I think what's really holding in-game advertising back is that it's almost purely a branding play. There's no "click" in a game... and they may never be. I can't see clicking on an ad and leaving gameplay to find out about the new garden salad fish sandwich fries at McDonalds.

Interesting industry to keep an eye on. I spoke with someone at Massive Inc. recently, and they talked about how now they are using rich media ads in-game as well. The example would be a billboard that when you get in a certain proximity to it in-game, a trailer for a movie plays, or something like that. Hmmm... not sure what the reaction from gamers would be to that.

A. said...

in game advertising reminds me of the kinds of sports sponsorships that beer companies and the like seem so fond of - all you get is a logo. it feels like a big benefit to the gamers because it makes the game environment more real, but i don't see the benefit for the advertiser. what would make more sense for an advertiser would be to create a game on your own to give to people - create a gaming context that reflects well on the brand and its aspirations.

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