I love games. If I had invested every dollar I turned into “4 quarters” I spent on video games between the ages of 10 and 18 in Bill Gate’s grand vision at the time, I would probably have a cool quarter-mill working hard for me right now. But that’s the past. Then again, I loved every eye jerking, pulse pumping, heart pounding, sweaty palm moment of it; so there.
In-game advertising, while in its infancy seems on the surface to have a whole lot of potential. As I mentioned in my previous post Consumers Want Permission Based Behavioral Targeting, advertising and the Gen-Ys are wrapped tight. Advertising is so much a part of their world that to separate the two would be like removing the birth mark from the head of Mikhail Gorbachev. Neither one would ever be the same; the birth mark or Mikhail...
To get an idea of the potential of in-game advertising, one has to look no farther than the top 10 2005 video game titles as per The NDP Group. They are outlined below. I have placed comments next to each game of the top 10 that has advertising potential.
Notice that every single title has a comment? That’s because they all have advertising potential. Some more than others, but they all can offer a certain amount of “ad spend” value to an advertiser wanting to reach the specific audience that each game attracts.
The Demographics?
Jupiter research reported that the majority of game console owners are adults, the number of high-intensity users is set to grow 40% by 2007 and that the median age is 23.
"An older more usage-intense audience is a powerful change for game companies who struggle to adapt hardware and games for profitability in a highly competitive market. As the audience ages, the content will need to mature as well," said Michael Gartenberg, Research Director for Jupiter Research.
An already Gen Y hooked audience, tied together with a very strong young adult audience makes for lots of current opportunities and future opportunities.
What Types of Creative are Available?
The standard types of creative options available to advertisers are:
• Billboards
• Banners
• Signs
• 2D
• Full Motion Video
• Audio
• 3D Advertising
Of all the options available, the one that intrigues me the most is 3D Advertising. It allows the advertiser’s product or service to be placed in the game in such a way as to allow user interaction. Now were talking. If you are going to advertise to gamers who are inherently engrossed in their explosive experience, then true gamer interaction is the only way to go. Billboards, banners, signs, 2D, audio and general-motion are all passive; 3D is active.
For example, during a Grand Theft Auto session the gamer could come by a 3D interactive ad for 20” tires. Clicking on the ad could pause the game, then save it and launch the gamer into the ad. The gamer could then choose from different styles, manufacturers, mock-ups, sizes etc, and click “shout-out”, which then sends an email with the information requested to the user (and friends if desired). This would be made possible by use of an email address field that is filled out at first game run and stored on the console or taken from outlook or the game console as part of a general setup. The game then resumes once the interaction is complete.
Taking it further, the interaction could incorporate point-of-sale functions and allow for actual transactions, complete with emailing a receipt and shipping the product to the door.
Is it Accountable?
Accountability is a critical factor when deciding on what type of advertising vehicle to use to get your message across. It is equally, if not more so for gaming. Its fledgling status requires it to be able to prove itself to the market before it is able to reach the next plateau.
Double Fusion says this on its website about accountability:
“Is in-game advertising effective? Accountable?
Absolutely. No medium is more effective, and there are multiple brand studies to prove it. All Double Fusion campaigns provide detailed campaign reporting for full accountability, and, unlike other media, advertisers only pay for the time their ads are seen…unlike TV, unlike the web, and unlike print. No medium is more accountable and measurable in terms of the actual time spent with advertising.” - Source: Double Fusion
I am not so sure about the “unlike the web” portion of the statement. After all the basic notion of charging advertisers per impression is also paying them for the time the ad is seen (all things being equal), isn’t it? I think this portion was deliberately left vague to allow for arguments either way. Nevertheless, I very much agree with the TV and Print portions. Turning on a channel or buying a magazine doesn’t guarantee the advertiser anything. But being able to track how often a gamer interacts, clicks or views an ad is extremely valuable, even more so when you connect that action with the demographics you may have about the user and are able to fully interact.
To answer the question of how effective is in-game advertising? I would have to say that it could be very effective; far more effective on a case by case basis then television or print. Now if cable got up off its rump and went interactive, perhaps my opinion would change; perhaps.
This is John Brock for the OMAnalyst Network.
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