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.

Playstation Home

Playstation 3 owners such as myself have eagerly awaiting the release of the virtual world Playstation Home for quite some time now. The free world will provider gamers with new ways to interact and socialize, and is expected to be released sometime in 2008.

With the establishment of a new in house ad agency at SCEA, Sony is hoping to bring in extra revenues from the Playstation Network and services such as Home. The new unit will be responsible for advertising strategies across all of playstations platforms. Darlene Kindler, previously the VP of Adscape publishing, will be in charge as Director of Network Advertising. With the use of Home, the ads could be delivered as virtual walls in a room, or even feature videos of upcoming games. With the great deal of flexibility provided to advertisers within a virtual world, there are numerous possibilities as to how the content may be delivered.

As a proud playstation 3 owner I have always been excited at the prospect of home and have recognized the potential it has to create a gaming community. The placement of ads within Home makes sense since it is a very segmented audience (playstation 3 owners) so the ads can be very narrowly tailored. Ads will also ensure that this service remains free, which is something playstaion has always supported. This is in contrast to Xbox Live where subscribers need to pay $50 a year just to access online features and play games online. I am intrigued to see the type of content that Sony's advertising strategies come up with, and also to see how they integrate it into a part of the world of Home.

Video Game Ads for Kids

Children have an enormous amount of influence over their parents. It can be seen everywhere from a child throwing a temper tantrum in the toy store to the types of movies families go to see on the weekends. With that said, Cookie Jar is looking to integrate kid focused ads into their upcoming MMORPG, Magi-Nation: Battle for the Moonlands. The game, which is based of the Kids! WB show Magi-Nation, signed an agreement with GoFish, a company that will be providing the in game ads to children. Ken Locker, Senior Vice President of Digital Media at Cookie Jar, is confident that these ads will have a great impact.

Ken Locker states some people refer to the power of children in the household as the "nag factor" Yet he comes back and states that he sees kids as influencers. He further explains that when you advertise to kids you are marketing to both the kids and their parents. The kids have a limited disposable income while they can in addition, as mention, influence the purchases of the household. Cookie Jar has previously introduced banner ads into their free online titles, yet this is the first time that the games will be integrated into the game. Ken Locker stated the proposed benefit of integrated ads by stating "...If the ads are contextual, they're less objectionable. ... Kids seem to accept it."

I have never been against advertising in games, especially if it makes the game free. I respect the right of aadvertisers to put their ads in games so long as they dont interfere with the gameplay. In this case however i do have concerns about whether it is ethical or not to integrate ads into a game that is meant for children. With a demographic of 8-14 year olds, Cooki Jar will in essence be advertising to a very young age group. This kids are very impressionable so the effects that the ads may have on them may be greater than that of an adult. Advertising to children has always been a hot ethical debate in terms of television, and i wonder if any debate has arisen concern video game ads as well. Whatever the case, i was pleased to see the message that Cookie Jar will not be promoting any unhealthy foods to kids. Ethically, i think that is a step in the right direction.

Ads Dont's Equal Cheaper Games

One of the strongest arguments supporters of video game advertising have been making is that extra revenue from advertising dollars will ultimately reduce development cost which will be translated to cheaper games. It appears however Electronic Arts Senior Director of in game advertising, Shebly Cox, does not believe in this logic. Electronic Arts has multiple sports and driving franchises, and they have been credited with bringing in game ads to the players without being overly intrusive. Yet despite their use ads their games still run thr full $60 at retail. In a phone interview with Next-Gen, she was quoted as saying "Advertising is not going to be that silver bullet to make everything okay".

That isnt to say that the revenue from in game advertising does not help with costs. However, she explains that next generation development costs are astronomical and that advertising dollars arent going to magically make things ok. Combating development costs will require then finding multiple solutions to the same problem, not just the in game advertising solution. So it seems that in the effort to bring cheaper games to consumers, new strategies will have to be implemented in addition to advertsing in games.

What these means for gamers like me is that we should continue to expect to be paying $60 for console games, despite how many ads developers choose to place in the game. The only time advertising truly benefits games are in the pc market, with free-to-play online MMOs. In situations such as those the games are allowed to be free thanks to the advertiments and virtual item purchases, however on the home console market, these model does not apply.



With record sales in the video game industry in 2007, consumers, myself included, dont seem to mind the steep prices because of the entertainment value of the games. However if prices continue to rise there may be a point where consumers may react and the sale of games declines because of the high prices. Hopefully soon publishers like EA will find other ways to cut costs and then consumers can enjoy quality games for under $60.

No matter how many advertisements these games may have, they will still cost $60.

Most Despicable Use of In-Game Advertising

Very few stories ever acurately capture the way hard core gamers feel about in game advertisements. Sure there are surveys and statistics about attitudes towards adsthat are often reported, but as most people know, any statistics can be manipulated. It would be impossible to precisely measure every gamers opinion about in game advertisments, and it would differ for different games. That being said, gamespot.com, a site for game industry news, recently featured it's best of 2007 year end awards. Among the awards handed out was the award for Most Despicable Use of In-Game Advertising. Visitors to the site participated in the vote which decided which game would take home the (dis)honor. In addition, editors of the site chose their own "winner" of this award.

The description of the award describes videogame advertising as "one of the worst trends to appear in the world of videogames". It recognized the need for advertising in video games in order to cout costs, but describes a point where the ads go from being acceptable to ruinin gthe video game experience. Gamers voted on 5 titles :Guitar Hero III, Need For Speed: Pro Street, Skate, Tabula Rasa, and All Pro Football 2K8. Gamers voted with a majority 56% that Guitar Hero III should take the award. Editors of the site differed choosing Need for Speed as their winner.

Which ever game truly deserves the award is irrelvant to the idea behind this award category. Having this as an award implys something about the way gamers, notably hardcore gamers, may truly feel about in game advertising. There is a line that many game developers should be aware of when making their games, that gamers perceive that there is a point where in game advertisements can go to far.

Having not played any of these games i cannot say whether i agree or disagree with the voters or the editors, but i can say i have had similar experiences. Playing Fight Night Round 3 for the first time i realized that this game may have taken the advertisements a little too far. Logos were plastered everywhere from the loading screens to the boxing ring itself. Even the announcers in the game mentioned products and slogans. I would argue that it definately took away from the game experience and that is something developers need to be aware of.

Let the Free Gaming Begin

One of the idea's behind allowing advertisements in videogames is that it will create cheaper games since development costs will be helped by advertising revenue. Thus far, many gamers, myself included, have not seen any of these reduced costs as the prices of many games sit at $59.99. Nevertheless, steps are being taken to provide games that are completely free to the players. For instance, Id Software announced at GDC 2008 that it is working with IGA Worldwide on a free version of Quake.

The game, title Quake Live, will be completely free fo rthose who want to play. While it surely will not be as popular as the more powerful PC and console versions of Quake, it does have a mainstream appeal. A free program will certainly allow anyone who wants to play access to the game, which as the article points out has the potential to build a huge community. All in all it is a good step for video game advertising and if successful, could lead to more free games.

Since hearing about Quake Live, I am more than willing to play the game once it goes online. Currently it cost $60 for me to go out and buy a new game, which as a college student, means i dont get new games all thta often. As I am limited to only being able to buy a few games, I am missing out on numerous titles that i would love to be playing were it not for the cost. Quake Live is a great example of how advertisers and developers can address the high costs of the industry and provide an alternative to the pricey console game market.

Psychology of Video Game Ads

While publishers remain hesitant to fully pursue in game advertisements, it seems that simple psychology may help thm overcome the fear of putting ads in their games. The trick to creating effective ads in games explains David Edery, portfolio planner for Xbox Live Arcade is to create ads that aren't recognized as such. With 14 percent of gamers believing that in game advertisements ruin the game experience, Edery argues that "good advertisements arent seen as persuasions" He encourages publishers to look fo was to integrate the advertisements within the game.


As he explains, putting a present day movie ad in a futuristic game doesnt work because it sticks out. Things that stick out will be recognized as advertisements and thus are likely to be ignored or forgotten. Using a honda civic in a game instead of a generic car with blatent honda civic ads in the game world. He uses the example of Splinter Call: Pandora Tomorrow as a model for what ads in games should look like. The phone used by the character in the game was a Sony Erricsson, and his repeated use of it exposed the players constantly through the brand.


As a gamer i question the reliability of the information for which Edery is arguing. While i agree that it may be smoother for game publishers to integrate ads within the game, there also is the possibility that they may be overlooked. Having played splinter cell a great deal when it was first released, i never notcied the Sony Ericson brand on the phone used in the game. While a blatant advertisement may stick out more, it is harder to overlook. I have never thought either that an ingame ad had taken away from may game experience. It is up to the developers to balance whether they want to offend the 14% of gamers by placing ads in games, or risk exposing the ads the other 86% by blending them in.

Burnout Paradise

Electronic Arts' racing title Burnout Paradise has always been an attractive game for gamers, so it is no suprise that IGA Worldwide, a leading in game advertising firm, announced a partnership with EA's popular game. IGA is currently working with a vast amount of brands, inlcuding Burger King, Gillette, Vizio, CompUSA.com as well as others to integrate advertisements into the game. These ads can take the form of anything from billiboards to storefronts, even radio stations.

Justin Townsend, CEO of IGA Worldwide, spoke about the deal stating his excitement to be teaming up with suhc a popular franchise. He furthur elaborated by anouncing that the video game advertising industry is expected to reach $670 million this year, which he believes indicates that both publishers and developers are becoming more convinced of the benefits of advertising in videogames.

What I find most interesting about this news story is the potential it has to become a trend. It is entirely possible to me that more popular franchisers from any number of publishers could begin to ink deals with a different brands. I believe it could even make it ot the point where the release of new Burnout game will also feature the debut of the newest Burger King Ad. While it may seem extreme, marketers are constantly searching for that new and original way to reach their market and in the virtual worlds of video games they have literally endless possibilities.

The Next Step for In Game Ads

With all the attention given to the cutting edge appeal of video game advertisements, it is relevant to mention that the medium itself is ready to evolve. Last post I discussed some of the criticisms of video game ads that exist within the industry. A recent article however from DMNews points out that while the practice of advertising in games is not yet perfect, marketers are ready to take the next step. The story explains that by putting money into an untested medium, advertisers are pulling money away from budgets that can be used on a more proven form of advertising.

There may be some who will agree with this philosphy however the story is quick to point out that if done properly the video game medium can be extremely effective. As Darlene Kindler, director of network advertising at Sony Computer Entertainment Amer­ica puts it “If done well, it can be contextually relevant for the player — unlike $1 million television ads that may be [skipped].”

Truer words were never spoken. Especially with the use Tivo where consumers are simply fast fowarding through commercials, it seems to be harder and harder to grab the consumers attention. But a well placed advertisement in an interactive game, surely that has some potential. If my eyes are glued to the screen as I am racing through a city, how am i not going to notice the giant billiboard thats right in front of me. I agree that if done correctly, video game advertisements could become just as popular, if not more so, than television ads.

What is correctly then? The story discusses how Sony will be using it's military game SOCOM, which features a Hummer in the game, as a part of an online contest where the winner could receive a Hummer. While not the most original way to market a product it is certainly a step. And for a medium that is looking for ways to evolve it is a step in the right direction.

Skepticism Towards Video Game Advertising

Advertisers will try and convince all forms of media that their services can cut costs. After all, the revenue game developers receive from placing advertisements in their games should, in theory, help to reduce costs. While there are many who support the use of advertisments in videogames, Activision Blizzard CEO Bobby Kotick and Sony Group CEO Howard Stringer have voiced concerns about the practice.

Both CEO's have their own various reasons for having doubts about in game advertisements. Stringer is concerned over the funding that advertisers have, stating they do not have the deep pockets that many people think they do. This is sepecially true in times of recession, as advertising budgets are some of the first costs ot be cut. Activision Blizzard CEO Kotick simply explains that he would go in a different direction other than in game advertising.

Whatever the reasons, both men agree that there is a better way to meet the growing video game industy's financial needs. Whatever those new solutions are remain to be seen but one thing is for sure; as video game technologies continue to evolve so will the price to produce and develop the games. This leads to either video games which will be riddled with ads, or consumers will have to pay higher prices. With the going rate at $60 a game, I am certain i am not the only one who will not being willing to pay more.

Ads For Free Games

According to a recent survey by RealNetworks, 9 out of 10 gamers would be more than happy to watch video advertisements before and during gameplay in exchange for being able to play the game for free. This story, found on vnunet.com, while not a suprising find, does indicate a new way in which marketers can expand the ways in which they currently advertise.

More details from the survey reveal that 34% of the 1,500 they would even click on in-game advertisements if they were interested in learning more about the product. What advertisers need to pay the closest attention to is the types of ads consumers said they would respond the best too. 55% of those surveyed would be willing to watch any ad, but an additional 1/3 said they would rather watch ads important to them.

From an advertising standpoint, the 1/3 who want to watch ads should be the segment that is targeted the most. To the individuals who said they would be willing to watch any ad, they may simply see the advertisements as a hinderance to playing their game. They wont mind watching them, yet the fact that they arent concerned about the product raises the idea that they dont plan on being too engaged. With the 1/3 who want ads that meet their needs, these people will be more focused on the ads and more willing to click a banner or do more research after thy play their game.

As a gamer, I am interested in this type of advertising because being able to play a game without paying is extremely appealing to me. If this strategy of free games on the PC proves to be extremely effective, marketers should consider placing video advertisments on console games as well, perhaps as a way to help developers with high technology costs, passing savings on to the consumers. I know as a gamer i wouldnt mind paying less, and i think that 9 out of 10 people will agree.

The price of a free game

Massive Incorporated

My brand is sick and tired of advertising through the same old media. Television, radio, print, none of these outlets seem to be getting the job done for us anymore. Luckily, help is not far away. Massive Incorporated prides themselves on being "Your channel to the gaming audience". With videogame advertisments becoming more appealing to advertisers, Massive Inc has surely have found themselves in a good position to be in.

You can read for yourself on Massive Inc.'s website the pitch that they give selling their service. They cite the videogame industry as one of the fastest growing entertainment industry and also explain the benefit of being able to get your message to a hard to reach market in young adult males.

I am skeptical of the facts and data they give for their audience research, as i am with most data i see when someone is trying to sell me something. However what has suprised me the most is the amount of games that this company has already placed advertisements in. In game advertisements is a relatively new business, yet that has not stopped Massive Inc. from keeping busy. Madden 08, Splinter Cell, Need For Speed are just a few of the many games Massive Inc has already placed ads in.

Going through the list of games, as suprising as they were, i did come to a sort of revelation. Many of the games listed are games that i have at one point or another played myself, yet i was completely oblivious to them. Either these ads are affecting me in an unconcious manner or perhaps videogame advertising is not as effective as Massive Inc. believes. I may just be a fluke consumer who is generally unaffected by ads, or it could speak to something about the nature of videogames. After all, if i am busy trying to win my race in Need for Speed, why would i take my eyes off the road to look at a billboard.

Yes i see the ad, but for some reason i do not feel the urge to go to the dealership and buy a Pontiac

A New Way to Advertise

Videogames are big, and they are becoming even bigger. According to The NPD Group, who monitors the videogame industry, sales in 2007 were a staggering $17.94 Billion. To put this number in perspective, it s a 43% jump over sales from 2006. There is also evidence to suggest that sales in 2008 will grow even more.

With such a booming industry it is no wonder that advertisers have taken notice. With an enormous audience of gamers for companies and advertisers to market, companies and advertisers alike will be doing everything they can to get their messages into games in their hopes to make a profit off of this nearly $18 billion dollar industry.


The question becomes as consumers of media should we tolerate even more product placement. We already deal with television and radio commercials, magazines littered with print ads, not to mention blatent product placement in our favorite movies and shows. As a gamer myself i was shocked and suprised when i saw my first advertisement in a videogame, but now it seems the practice has become commonplace. Gamers must learn to deal with ads in their games the same way that movie buffs cope with product placements. It remains to be seen if in game advertisements have any real lasting impact, but for now, it seems the ads are here to stay.

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