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.