Trends in Video Game Advertising

Throughout this past semester, I have been examining the rising trend of advertisements in videogames, and have noticed many different tendencies in terms of where this young industry is headed.

First and foremost, it is obvious that the industry is growing. Not just because analysts expect $1 billion to be spend on videogame advertisements by the 2012, but also the fact that the video game industry sales are growing as a whole. 2007 saw record hardware and software sales for the entire video game industry, and the video game audience is only continuing to grow. The success of the Nintendo Wii has proven that there is an entire market of so called casual gamers that are helping drive video game sales. As the video game industry as a whole continues to grow, advertisers will become more and more inclined to find ways to reach this segment. I plan on seeing only more video game ads in the future as more and more titles are released across various consoles.

Moving away from a discussion on the industry, I have noticed a great debate that exists between individuals who are for advertisements in videogames, while others, mostly angry gamers, are strictly anti advertisements in their videogames. The arguments for supporting in game ads discuss that if these ads are used properly, they can help increase brand awareness and brand recognition. Those who are against the ads however state that by placing advertisements in video games you are ruining the gaming experience. Advertisers are unwilling to place an ad in the game if it cannot be noticed, what would be the point of putting that in the game if no one will see it, that is a waste of money. Those against the ads however seem to take issue with all ads though, creating a debate that seems to have no clear winner. Perhaps in this case it is the simplest explanation that will be able to provide the simplest solution. Advertisers will be unable to please everybody, but placing simple ads that do not jump out at a gamer, will not seem intrusive. In fact, in most cases they will ad more realism to a video game. A billboard that can be seen down the road in a driving game, or the boards surrounding a field in a soccer video game. These are examples of how ads can be eased responsible so as to not disrupt the gaming experience, and effectively so the messages reach the intended audience.

Speaking of using ads responsibly, there seems to be unsettling trend of game publishers abusing the use of in game advertisements. It is one thing to have a subtle advertisement in the background to ad realism to a game, yet it is another thing all together for the game to beat these advertisements into the minds of the gamers. For example, A game like Fight Night Round 3 which features ads during the loading screen, in the boxing ring, and even the video game announcers promote products the way a real telecast would. While it can be argued it is for the sake of realism, there is also certainly a line which is easy to cross and shatter the gaming experience. If ads are continually used irresponsibly within videogames, it will create even more public outcry as mentioned from gamers who do not want their experience to be ruined by ads.

Central to the debate involving video game advertisements revolves around the notion of technology costs. In the age of next generation consoles game developers are finding that the time and money required to create videogames is rising, and that revenue gained from advertising dollar seems to be an easy and effective way to help control costs. The jury is still out on whether additional revenue from advertisements in games really does help to control costs for gamers. After all, if advertising revenue was controlling costs game prices would be going down, not up. However this is not the case as the costs of a new console title costs about $60, up from $50 during the last generation of consoles. If advertising dollars do indeed help to control costs, it is not in a significant manner that passes the savings onto the consumer. Game publishers may see the benefits of additional revenue from advertising in games, yet the consumer is still playing $60 for a new title regardless of whether the game has ads or not.

Consumers are still paying high prices in the console game market, yet that does not mean advertising in games has no benefits for the consumers. In the online realm, particularly with MMO titles, publishers and advertisers are discovering ways to deliver free content to the consumer through the use of advertising. Different titles have all used similar strategies whether it be Quake Live, Battlefield Heroes, or even the MMO City of Heroes, publishers are committed to free content through advertising. While the online titles feature less advanced graphics and game play, the fact that the games are free create the potential to build huge communities. Not everyone can afford a $400 console and a $60 game, so free ad supported online games are a great alternative. For the price of watching an ad or two, users can access the games and begin playing without any charge. Again the importance of the casual gaming market cannot be overlooked as it is the casual gamers who are more likely to invest in free games over the internet rather than pay the big bucks for the console experience. Companies like Sony are learning from this and plan to integrate ads into their upcoming social world known as Home. Free online play is a staple of Sony’s system and their desire to bring free online content to users can be supported by the use of ads.

Whether tit be over the internet or on a console, measuring the effectiveness of ads seems to be a growing concern for a form of advertising that is just starting to grow. Unlike radio and television which have their own organizations which monitor ratings, there is no system in place which would allow advertisers to measure the effectiveness of their ads. With so much uncertainty, advertisers are more inclined to spend their budgets on proven media forms like television rather than an outlet which still has to prove itself. Despite the fact that there is no system to measure the effectiveness in ads, that does not mean advertisers aren’t willing to take the risk. As more and more advertisers choose to use video games to put their advertising messages in, we will no doubt see a reliable way to measure the ads rise as well. The industry of advertising in games is relatively young but all evidence suggests it is growing at a rapid pace.

Whether you agree with video game ads or not, the ads appear as though they are here to stay. Advertisers will always be looking for new ways to break through the clutter, and for now they see videogames as an outlet which will allow them to do so. Videogames are the most interactive form of entertainment which exists, which is one of the reasons why I believe video games are such an attractive outlet for advertisers. Unlike television where you can change the channel during a commercial, a video game requires your undivided attention. You cannot tune out an ad while you are playing a game because you are constantly engaged with your television while playing. Skepticism has arisen about the true effectiveness of video game ads but one thing is for sure. If you are playing a game and a ad is integrated into the content, there is the undeniable fact that you are going to notice it.

Video Game Ads to Reach $1.0 Billion

With all of the focus given to in game ads and gamers and publisher reactions to the growing trend, not much time is spent looking at the numbers. Not surprisingly, as in game ads and advergames become increasingly and increasingly popular, spending on these ads will continue to grow. According to an article in AdWeek, spending on video game forms of advertising will reach $1 billion by the year 2012. Additionally, most of that money will be spent on casual online games, instead of the dynamic ads found in PS3 and XBOX 360 titles.

These projections represent a change from last year, where 59% of the 550 million spent was on in game ads, while about 41% was spent on advergames. Despite the fact that console titles are selling faster than other, this report holds fast that spending will be redirected away from the consoles and into the online sector. Casual online games are also growing at a tremendous rate, and it is easier to implement on games online instead of consoles, because not all console gamers are playing their games online.

4 years seems like a short time for such a rapid growth in game advertising, yet based on sales from the past year videogames are clearly becoming more mainstream. The success of the Nintendo Wii is evidence that there are plenty of casual gamers out there who are looking for a fun experience. It makes sense that advergames will be the future of game advertising as it is not only cheaper to make the ads, yet easier to make the games free. Free gaming is a big motivation when individuals choose to play a game or not. Currently advertisements in console titles have no impact on the consumer price, which can be almost frustrating. On the world wide web though advertisers have already proven ways to deliver free content in exchange for the advertising, which again is why it makes sense that most of the advertising budgets should be spent there.

In Defense of In Game Ads

When Game studio Gearbox recently inked a deal with ad company Double Fusion to explore ads in future titles, the deal was not viewed as negative. Yet that didnt stop the backlash from anti-ad gamers from making comments along the lines of in game ads are ruining games. In response, Gearbox Studio President Randy Pitchford posted in his blog expressing that the deal will not devalue upcoming projects. Gearbox Software is responsible for titles such as Brothers in Arms and Borderlands.


According to his entry, Pitchford acknowledge that some advertisers do use advertisements irresponsibly which harm games and ruin the experience. He urged readers however not to judge Gearbox solely based on the advertisers which use ads irresponsibly. He also added the the deal did not have specifics concerning upcoming titles, only that Double Fusion could contact Gearbox with a proposal. Any possible proposal Pitchford added would only add value to the game, not take away from it.


I like that a game studio president is taking the time to post in his blog and address the fears that gamers have about upcoming projects. Clearly he was paying attention to what gamers were worried about and make positive efforts to reduce their anxiety. While clearly many angry gamers will remain skeptical, Pitchford did what a good president would do by making these statements in his blog. I believe that in game ads can be done responsibly and effectively, and I am confident that Gearbox who have made great games in the past, will bring the same quality to their future titles.

Ads for Spys

The effectiveness of ads in games for brand awareness has yet to be seen, yet that hasnt stopped many big brands from investing in this young new media outlet. More interestingly it turns out that other organizations have also been experimenting with virtual advertising, including the British government. GCHQ, a branch of british intelligence, is looking to attract tech saavy recruits by placing ads in games such as Splinter Cell: Double Agent.

GCHQ, which stands for the Government Communication Headquarters, believed the ads would reach an "Internet-savvy generation of graduate groups." The campaign was handled by Massive Inc., the in game ad company controlled by Microsoft. Ads appeared in different games as well including Need for Speed Carbon and Enemy Territory: Quake Wars.

It is no suprise that a government agency is willing to invest advertising money into videogames. After all, government PSAs can currently be seen on TV and heard on the radio, so why not turn to videogames as a way to send out a message. The medium also provides the GCHQ with a unique, select target audience which they wish to reach. They are interested in individuals who are tech saavy, so why not target gamers who spend their time playing console and computer games. It would be interesting to see how effective these wanted ads actually were, but i would be willing to bet they were more effective than we would think.

Standards for Measuring In Game Ads

TV advertisements have Nielsen, Magazine advertisements have the Audit Bureau of Circulations, yet at this time there is no structure in place to adequately measure the value of in game ads, which presents a problem for the industry. According to a panel at MI6, it is one of the largest obstacles facing the advertising sector.

Andy Swanson of Ubisfot discussed the importance of consistency in measuring advertisements that can be used to compare different values of different ads. He added, "When a person looks at a billboard in a game, what is the value of that. How long do they need to look at the ad to validate that as a buy?" The Head of Gaming at AT&T Entertainment Services Glenn Broderick wanted an "apples to apples" comparison, which would allow media buyers to compare the value of a video game ad to established media such as TV and print. This notion was further established when Dean Martin, a media buyer, explained that advertisers are afraid of the gamble they take when they buy in game ads, because the risk is lower buying from established forms.

Developing a system for measuring video game ads effectiveness wont be simple. Aside from the fact that there are gamers who will simply ignore the ads, there is also no way of knowing how many individuals play a given game. Friends share game, people buy and sell used games on ebay or through outlets like gamestop. The truth of the matter is however that the systems in place for TV and magazines aren't entirely reliable either. With services like Tivo consumers can skip commercials and those who surf the web have become numb to banner ads. When a system is put into place to measure the effectiveness of video game ads there is no guarantee that it will be as useful as those who want it hope for.

Optional In Game Ads

NCsoft, publishers of such online games like Guild Wars and City of Heroes has just signed a deal with Double Fusion, a maker of in game ads. The deal hopes to bring in game advertisements to the franchise City of Heroes, but there is a catch. According to the story, the publisher is making plans to include a free option that will allow gamers to turn of the ads. What is interesting here isnt so much the fact that the ads are being included in the game, yet the idea that they can be turned off, especially for free, by the individual.

The reasoning for bringing ads to the City of Heroes franchise is to create more realism in it's modern urban setting. With that said, the ads will also help to provide revenues to help furthur develop the MMO. Any gamer who chooses that they do not want the ads will have the option to turn them off, no strings attached. As an iteresting note, the same technology being used for creating these flexible ads, will also be used to help bring user create content into the game.

I like the idea that NCsoft and Double Fusion are willing to give users the options to turn off the ads within the game. In my experience I have never thought that ads were over invasive and disrupted the game experience( Fight Night Round 3 was pretty close). Nevertheless, there are those who are strictly against advertising in games and this option suits them well. For the most part it seems to me that players of the game will find the ads either do indeed bring realism to the game, or more likely be neutral towards their addition. In either scenario it is unlikely the user will opt to turn them off simply because if they do not ruin the game experience, then there is no logical reason to do so.

PSN Ad Mocks X Box Live

Yesturday i discussed the ways in which Sony is planning to integrate ads within their upcoming social network Home, as a way to keep both the new service and the old online services. One of the PS3's strongest selling points has always been its free online play, which competes with the X Box live service in which subscribers have to pay $50 a year. A new ad for PSN appears to be mocking the X Box live service, stating in the ad "the fun is always free"

What is most siginificant about the story isnt the details of the story itself, yet rather the way gamers and fanboys react when information like this is brought to light. Reading the comments on the original blog post, it is obvious to see which gamers support microsoft and xbox, and which gamers are in the corner with Sony and Playstation 3. This trend can be seen whenever a debate between PS3 and Xbox is reported anywhere. PS3 supporters will laud Sony for keeping online play free, and crucify Microsoft for charging more even after the game has been purchased. Supporters of Microsoft will express how $50 a year is such a small fee to pay for the content Microsoft provides, and that they would rather pay $50 than o be stuck with the online content Sony offers.

As with any irrational debate, it seems impossible to argue who is actually right. As a college student i am inclined to say i support Sony because of their free online content. The $50 however may not be such a big deal once i am out of school and no longer, for lack of a better word, poor. It is amusing to see how passionate gamers can get about their respective systems when someone calls the features of that system into question.