In-game advertising

In-game advertising is about the use of computer and video games to deliver an advertising message. Statistics has it that in 2005, spending on in-game advertising was US $ 56million and this figure is estimated to grow to a staggering US$ 1 Billion by 2014!

In-game advertising is seen as an idea way of targeting the younger demographic – age 20 to 35. This group is viewed as showing a preference for computer and video games over TV. There have been complaints of in-game advertising being invasive, sometimes calling in-game advertising software as spyware. The potential of this form of advertising has been recognized with Neilsen Media Research having a new video games rating service.

There are primarily two types of in-game advertising –

Static, and,

Dynamic

Static in-game advertising

In this form of in-game advertising, the advertisement was placed into the game by programmers. Once it was place, it couldn’t be moved. The first such ad was seen in the 1978 computer game Adventureland by Scott Adams, who inserted an ad for his forthcoming game Pirate Adventure .

Dyanmic in-game advertising

With the growth of the internet and availability of increased bandwidth, it has been possible for dynamic in-game advertising to find a place in the in-game advertising arena. In this method, the ad can be dynamically altered by the advertising agency. Ads can be modified according to Geographic Location, time of the day etc. A most recent example of dynamic in-game advertising was an ad featuring the then Presidential hopeful Barack Obama in the game Burnout Paradise.

The advertising industry’s reaction to in-game advertising has been, not surprisingly, positive. In-game advertising is seen as a very effective way of reaching the 20 -35 demographic. This is especially relevant in context of the falling TV viewer numbers.

The games industry has no gripes either, as it represents a new revenue stream. Industry figures suggest that in-game advertisements contribute extra 20% – 33 % profit per game sold. Game publishers see this as a key contribution to cover their game development costs.

The next time we play a video or computer game watch out for that in-game advertisement!