Ads of the Future: In-Game Advertising

posted by Melanie DAcchioli @ Wednesday, November 26, 2008 - 1:16 PM
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In-game advertising is well on its way to becoming a mainstream ad unit. Over the past couple of years, gamers have seen an increase in virtual billboards and posters for actual advertisers appearing in popular video games. The image below is an example of an Adidas billboard in the FIFA International Soccer game.


Additionally, the emergence of Second Life has created an entire virtual world for advertisers. This type of video game experience is able to host persistent and ever-present advertisements, including not only static ads but also meaningful brand engagements such as virtual stores, dealerships, hotels, etc. Second Life created a sort of test market for advertisers and their products.

Unfortunately though, the virtual world of life as an avatar has only so much penetration in the consumer world. While Linden Lab, the creators of Second Life, report that there are 2,325,015 "residents" of second life. However, ccording to CNET, “The real number of active, individual users who log in on a recurring basis (users who sign up and return on an ongoing basis, though Linden Lab doesn't specify how often that is), is more likely in the 200,000 to 230,000 range, according to internal metrics used by Linden Lab, as well as calculations by others in the industry.”

But there might be some hope for the world of avatars yet. With 14 million users, Xbox Live, the online service for Xbox 360, has released a new product- Xbox Experience. Xbox Experience is a new Xbox 360 platform in which gamers create a custom avatar, which they will use to interact with other players in the Xbox Live universe.

Online Media Daily said that sponsorships of avatar clothing, accessories, shoes, etc. by advertisers such as Nike and Puma is something Xbox Experience is looking into providing in the near future, according to Mark Kroese, general manager for Microsoft's Advertising Business Group in the Entertainment Devices division. The opportunities for in-game advertising therefore become endless.

“Microsoft will monitor how gamers use the Experience platform and build the next generation of advertising services based on those trends,” Kroese said. “The platform offers AT&T, Lionsgate, Paramount Pictures, Nike, Sprint and other brands interaction with gamers by reaching into the home like television and measuring the impact similar to PC-based ads.”

The brand interactions offered by ads within Xbox Experience is meant to be unparalleled by any other type of in-game, video, or television advertising that has ever been offered before. Additionally, Microsoft is adding in functionality to geo-target and day-part ads, thus helping advertisers to reach their target audience, just like television advertising.

But unlike television advertising, ads within Xbox Experience can be clickable, connecting to landing pages that, according to Online Media Daily, historically average 3.5 page views.

Microsoft is therefore using the Xbox Experience platform to create ads that are a tight integration of search, television, and in-game ads all-in-one. These ads have enormous potential and it will be interesting to see their results.

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Advertisers Take Advantage of Dynamic Ads In Video Games

posted by Bill Holmes @ Thursday, October 30, 2008 - 9:23 PM
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Advertising in video games is nothing new. As far back as the late 80’s, there have been movie tie-ins, product placements, and even full games based around advertising campaigns. Domino’s Pizza released a game in 1989 based around their ‘Noid’ campaign in which players had to “Avoid the Noid” (he ruins pizzas!).

Nearly 20 years later, the gaming industry has come along way. Up until now one of the big problems with advertising in games was that your ads had to be hard coded into the game and would remain there forever. Obviously this posed a problem; campaigns change, logos change, but there was no way to change an in-game product placement once it was there.

Enter dynamic ad insertion. With the advent of online gaming and downloadable content, games are able to receive updates on a daily basis. This applies to in-game ads as well. Ads can now take the form of anything from a bottle of soft drink a virtual character consumes to a large billboard inside a sports stadium. 2005’s Counter Strike on the PC was the first game to feature in-game dynamic ads.

Jump ahead to 2008. Gaming giant Electronic Arts (EA) is leading the charge, with dynamic ads in their widely popular sports and racing franchises Madden and Burnout, among others. The most notable campaign to date is presidential candidate Barack Obama’s in game billboard ads, geo targeted to gamers living in swing states in the upcoming election. EA also has plans for movie posters and actual placements in their February 09 release of their newest SIMS title.

So what does the future hold for in-game advertising? Analysts predict that by 2010,in game advertising will be a $1 billion industry, with no signs of slowing. The current economic recession may also be a key factor in growing the industry; "In-game advertising may become a popular means of marketing in a recession because it encourages an escapist mind-set", said Amanda Richman, senior VP-director of digital services at MediaVest. The desire to "escape" economic woe contributed to a boom in the movie industry during the Great Depression, and video games may be filling that role during this time period.

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Playing the Game, Part 2

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A year ago, Cory Van Arsdale was named CEO of Massive, an in-game advertising network with more than 40 publisher partners. Its network includes Xbox and PC video game titles such as Electronic Art's "Madden NFL 08," Funcom's Anarchy Online, and Activision's "Guitar Hero III."

In part one, Van Arsdale discussed online gaming's potential, Massive network's audience, and the different types of game advertising. Here, he describes marketers doing a good job advertising in online games and outlines some best practices.

Read more at http://www.clickz.com/showPage.html?page=3627839

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Playing the Game, Part 1

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The definitions of online and digital marketing are broadening, blurring the lines between online, in-game, and in-content advertising. Content digitally delivered and consumed through many different vehicles brings together video, gaming, and ads through a range of platforms, from desktops to set-tops and game consoles.

Digital ads are the common thread that weaves multichannel platforms into an experiential marketing program. The program can break through ad clutter, creating powerful touch points with consumers and reaching them in unexpected, engaging ways. One way to leverage consumers' engagement with digital media is through in-game advertising.

Read more at http://www.clickz.com/showPage.html?page=3627821

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