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.