I never really questioned why a certain song played in a movie would seem appropriate for the tone and theme of a scene. Now I know! It is known as defining an ‘audio personality’. It requires selecting not only the correct, but the best possible match between a song and a movie scene. Did you know that this is also what happens in video games? The electronic arts business is quiet, but it is huge. I have previously touched on how big of a hit in-game advertising has become. But the world seems to offer endless opportunities. Electronic Arts (EA) Games, the world’s largest video game company, has delved into making the virtual world as comfortable for players as possible. Taking it as far as compiling research on the listenership profile and game-player profile and matching that up with a sound! How incredible! In a marketing sense, the marketer takes into account many aspects of an individual – race; age; gender; income, etc. However, couldn’t we learn a few lessons from the guys at EA, such as take more than the obvious into account?

“I remember reading a Stephen King novel a few years back, and getting to a point where one of the characters in the book grabbed a coke to quench his thirst. There was no reason to mention a brand name in the story – it didn’t add to the plot, it didn’t make the story seem more realistic, and it felt like the novelist only included the brand name of the soft drink because he may have been paid to do so. I have no idea whether or not that’s actually the case, but it really lessened my appreciation of the novel.” said Bill Slawski, on Google Measuring Impressions of In-Game Advertising.

Two weeks ago, my classmates Aaron and Megat tapped on the of in-game advertising.

In-game advertising (IGA) refers to the use of computer and video games as a medium in which to deliver advertising. In 2005, spending on in-game advertising was US $56 million, and this figure is estimated to grow to $1.0 billion by 2014 according to Massive Incorporated.

We took quite a bit of time to get to the online game that they wanted us to try but we got there anyway. It was a game called Autobot Stronghold on www.y8.com. Well at first, it looked like a typical warfare game that boys play.

But after attempting it for a few minutes, I started noticing that throughout the game, its sponsor, LG’s logos are shown during the game.

Autobot Stronghold was a game designed to advertise LG’s brand new plasma television, hoping that while people play the game they will spot the LG logos.

During the start of the game, it showed a video for the LG plasma television and the sound system.

The LG logo always appears at the top left and on the buildings in the game as well. The train that passes by at the top, promotes the benefits of the new LG plasma television while players enjoy the game.

While playing the game, players can choose to upgrade their machines (as seen in the pink and blue bars on the bottom left). They can upgrade its speed, response, range and damage level. However, that is not really the main point. The main point about upgrading is that each upgrade is a feature of the LG television. For example, speed is the 200Hx TruMotion of the television and range is how energy-saving it is.

Other games also do in-game advertising. Below are some of the examples:

There are a number of advertisers that do provide the opportunity to present ads during gameplay, and even an Obama for President billboard was seen last year in an XBox game.

I personally believe it is pretty effective especially for games like Second Life and Sims. Advertisements and product placements are very often seen in these two games. It makes more sense to put them in games like these as they are mimicking reality. For example, billboards by the roads, electronic banners on buildings, brands on items that their character wishes to purchase. It makes the game more realistic. Unlike showing brands out of nowhere with absolutely no relation at all, I feel it works better for virtual world games.

(FIFA soccer’s banners at the perimeter of the field are also mimicking real-life soccer games at stadiums as well.)

What do you think? Are you annoyed by the advertisements or product placements shown during games? Or are you fine with them appearing like the examples above?

A research partnership between Massive Inc., a wholly owned subsidiary of Microsoft Corp., and researcher comScore will allow advertisers to know how in-game ads motivate gamers to visit Web sites, conduct brand-related search queries, and engage in other online actions. 

Ad Effx Action Lift for Gaming measures effectiveness of in-game advertising on online consumer behavior.

“We know from 80-plus independently verified post-campaign studies that in-game advertising increases brand engagement,” said JJ Richards, general manager of Massive Inc.

Ad Effx Action Lift for Gaming matches in-game console ad serving data from Massive with comScore’s third-party, post-campaign panel data to track and measure in-game advertising effectiveness.

It combines Microsoft’s proprietary, non-personally identifying Anonymous ID data, which is common across Xbox LIVE and Microsoft Web properties (known as Windows Live IDs), with user data from comScore’s panel of two million Internet users worldwide, says comScore.

Then comScore can determine if panelists who saw in-game advertising subsequently visited a brand’s Web site, searched brand-related terms, or engaged in other online behaviors important to advertisers.

The methodology, according to comScore, is similar to the ad tracking and measurement standards currently accepted for other forms of digital advertising, and maintains consumer privacy and anonymity in the process.

Preliminary research conducted by comScore using the new methodology on recent Massive in-game campaigns showed that people exposed to in-game ads demonstrated the following online behaviors when compared to a control group of people who were not exposed to the ads:

• 280% increase in visits to a TV channel’s Web site; 
• 125% increase in search queries for a movie rental brand and 57% spike in visits to its Web site; and 
• 17% increase in visits to entertainment sites after seeing ads for a particular movie. 

“We believe Ad Effx Action Lift for Gaming puts in-game advertising campaign measurement on a level playing field with comparable digital media,” said Mike Hurt, senior vice president, comScore.

Massive and comScore have submitted this new methodology to the Advertising Research Foundation for validation.

The announcement coincides with the second annual Microsoft Advertising Gaming Upfront event in New York City. The event showcases new video game titles from leading game publishers to enable advertisers to connect and engage audiences on the Massive in-game advertising network.

It’s really creeping up on the advertising world. In-game advertising has steadily risen and is bringing in millions in profits. The beauty of this offering is the array of avenues that are available.

Advertisers can place ads in the game through labeling their products; by showing ads while a game is uploading; and also through the exposure when a game is converted into a movie. Music bands; advertisers; and pretty much anything visible in a game has the potential to catch the attention of millions of active viewers. This is positive for the industry, which is seeing a decline in TV viewership, as viewers are steadily shifting to the gaming space. This is certainly an area for advertisers to seriously consider.

FoneGigsBlog list of In-Game Ad Networks

This directory provides a list of in-game advertising networks along with their profile, contact information, reach and partners and more. This directory will be updated frequently. Please let me know if you wish to recommend an in-game ad network not covered here or update certain information that is listed. Email Eric at Eric@smartdigitalspending.com.

Download the list of Mobile Ad Networks here.

In the 1950s and 1960s it was all so easy. Mad Men placed cigarette adverts on TV and nationwide the populous soaked it up. The hypodermic syringe model of advertising was working. Keep pumping the message into the audience, and eventually their response to your product with be akin to a pavlovian dog. Great empires were built around the creation, direction and execution of advertising.

Then somewhere between the 1950s and today it all went wrong. The glut of ads got so great that they went from being a novelty to an annoyance and people started to stop listening. TV remote controls were a milestone in ad avoidance, as channel surfing provided a temporary opt out.  As single channels became less effective the agencies started to integrate and plan and create multi-channel campaigns. They integrated press, radio, TV and any other channel that it could lay their hands on.

The leakage of the audience continued unabated and the advertising industries hit a wall around 2000. That wall was the internet and like so many industries the hugely disruptive force of the net, splintered the advertising industry. This was the classic flip from push to pull and suddenly a silicon valleys based start up was leading the audience to the brands rather than the advertising agencies leading the brands to the audience. Google still has a frosty relationship with many global media and advertising agencies. The reason? Google represent a threat to the core of their businesses. Google was a symptom and not the cause of disruptive power of the internet, the evolution of Google was born out of a necessity to search the web effectively. Conversely for the agencies, the better the search the better the ad avoidance. They needed to find another new channel.

Ad-funding is not a new idea, it has been around for decades but away from straight ahead advertising it was almost invisible, with product placement being covert not overt. The net provided a new transparency, a highly targeted route to the consumer. When online you are being watched, and this means that your tastes and habits can be observed and used for geo location, gender, age and numerous other analytic variables. Music was the first to try and employ the model of give away the product, and offset with advertising revenue. To date none of the primary ad-funded music services like We7 or Spotify have started to turn a profit so it seems that even when the audience is given the bait and switch proposition of free music in exchange for ears and eyeballs, that the reluctance to absorb ads is apparent to both audience and advertiser. Online game services like Pogo work on a similar model, where browser based games provide a platform for ad-serving and the games bring in the audience.

In game advertising represents quite a different proposition. Here, the audience have already paid the entrance fee, in most cases £40 (in the UK).  In terms of entertainment media games represent the higher end of the cost scale. In addition to that (in the case of Xbox at least) there is a monthly fee to be able to play games online. There are two primary methods of in game advertising, those included in the on disc game (that can often be static) that approximates to traditional advertising/product placement and those games that have ads served into them once they enter the online environment (Dynamic). The first advertising hoardings within games with real world ads started to appear in 1994 in the EA title FIFA international soccer.

The challenge for these static ads was that they were not measurable like online ad serving. Like any other connected platform ads are piped into the environment. Thus far this has met with varying degrees of apathy and outrage. Some gamers have been outraged and have decreed the ads to be invasive.  In the case of Wipeout HD, the ad-serving proved to be disastrous, with load times greatly increased and an incensed audience. Sony backed down and the ad serving was cancelled. A similar furore broke out around the EA title Battlefield 2142, these ads were served by IGA worldwide.

This was a short term victory for the audience as the introduction of ads is inevitable. Massive have predicted that in game advertising will reach $1.8 Billion in 2010, and it is seen as a way for games developers to offset the increasing costs of game development.  Some publishers see this as a way to make an additional $1 to $2 for each unit sold. The inevitable wave of analytics measure are already being put in place by traditional firms such as Nielsen, through Nielsen Media Research. Nielsen call it Gameplay Metrics and it has been created to serve in-game advertisers.

Visit the Massive website and you will see a very convincing argument for the dynamic in game advertising case. Impressions are counted by actual instances of the ad in clear line of sight of the player, and they are counted by the second. As an advertiser I can be assured that my audience is looking, or at least looking in the general direction of the ad. This varies greatly from online ad serving as impressions do not indicate any accurate level of engagement. Connected consoles provide exceptional analytic feedback about the level of interaction with the ad including viewing angle. These are metrics that outdoor, online or TV simply cannot provide.

If the serving of the ad can be accurately defined the question therefore is are the audience looking and listening? The suitability of in-game ads has to be based upon context. If they add to the experience and are not intrusive, then it seems counterintuitive as a gamer to register a complaint.

Prototype made it explicit on the back of the box, but when you play the game the presence of the ads is far from intrusive. The game is set in New York so the inclusion of ads makes perfect sense. Indeed they add to the experience. The content of the ads is secondary to context, as from memory I am finding it difficult to recall the actual ads within the game. There has been a long standing tradition of the inclusion of marques of car which represents another more oblique form of in-game advertising. Perhaps the most pervasive and least perceived form of in-game branding is the use of real-world gun names such as AK47, M16 and MAC-11. These are all products and whilst not consumer brands, I am sure that most ardent FPS gamers would be able to recall these with almost total clarity. In both of these cases the use of brand name would wholeheartedly be defended in the name of realism.

Advertisers are drawn to in-game advertising as it presents a new channel to reach the 18-34 year old males who had drifted away from traditional TV advertising. The other benefit is that these games are played on the TV, so are not a huge leap away from the communication methods of the past. The fundamental difference is that the TV represents that delivery method and not the platform itself.

Three years ago, I’d been game-free since the days of playing ‘Gods’ on the arcade simulator engine on my sleek, superfast Acorn A7000.  That’s quite a while, for those of you who have no idea what an Acorn A7000 is.  It’s not quite as long ago as the days of playing ‘Cavern’ on my family’s Sinclair QL, but it’s still a Long Time Ago.

Having been free of the lure of the digital realm for so long, I didn’t have much time for computer games.  I mean, Scorched Earth was fun to play when I was 17, but Doom was awful – I could never tell what was wall and what was monster.

But graphics have moved on, and now we have this cool thing called ‘anti-aliasing’ and game graphics are WICKED cool.  They’re so compelling in fact, that I found myself drawn back into the world of gaming, and took up First Person Shooters (or FPS for short) as a hobby.

Not for me those nasty online viruses known as MMORPGs (Massive Multi-player Online blah-fests) – no, I found that if you put a gun (or two) in my virtual hands and aimed me at the enemy, I’d happily trot from room to room shooting endless screeds of AI and scary little girls (that’s the plot to F.E.A.R, its expansion packs and F.E.A.R 2, by the way), marvelling at the graphics and the funky ways you get to kill everyone else around you.

That renewed interest has slowly grown into a fascination with gaming technology, the engines, physics and graphics… and now the sociology of gaming.  Specifically using it as a marketing medium.

According to Wikipedia , In Game Advertising (or IGA as it’s known), earned gaming companies an estimated US $52 million in 2005, and has been estimated to grow to 1.8 BILLION by 2010.

The adverts are often displayed on ‘billboards’ within the game where you might expect to see advertising, and the most prevalent advertiser in the games I play and see played around me is Coke.  Giant, flashing, neon billboards, placed in the city scenes or on billboards beside the road, and they feel very natural and very much add to the realism of the game.

In-game advert

I personally think this is ingenious.  These adverts are aimed at a group that is increasingly less and less interested in television.  It’s not that they don’t watch TV programmes, they just don’t watch them on TV.  With high-speed internet connections and a JB HiFi around the corner, the average geek (largely male, but some of us are also female, aged between 18-34), spends his or her time watching cult programmes on their computers, their big-screen LCDs, their PSP or their iphones, and you can be sure they don’t download the adverts.

And of course, many of them play PC or video games.  So – how do you reach them?  Well, you go to the virtual world where they hang out, and you sell to them there.  You’re like a hot-dog vendor at a rugby game, offering products this age group likes, in an entertainment setting.

I (personally) don’t resent this kind of advertising at all.  I don’t find it invasive – not like television adverts, which are the primary reason we’ve all turned away from TV.

Of course, the games need to chose the products they allow pretty carefully – if games start becoming cluttered with irrelevant messages the way the rest of our media-centric lives are, they won’t fulfill their role of being an escape anymore.

But if you’re a softdrink company whose IGA comprises vending machines being secreted liberally about the 437 rooms that make up a first-person-shooter, or you’re a computer company whose IGA is a logo on the machines that harbour the secret messages the lead character needs to figure out exactly WHY they’re still running through these endless rooms, then I think you’re a smart advertising company, and I applaud you.

I will be watching IGA with fascination over the next few years to see how it’s managed, and to see how imaginative it can get – without crossing the line to being annoying.

I recently got myself into the ludicrous, very feminine position of convincing my wife that buying Sims 3 is a better idea than propping up our garden with new goodies from the nursery.

I know… very manly of me. But I’ve been fascinated with The Sims ever since the game was conceptualised and discussed on the pages of some 90s computer magazine. And this time they’ve taken it a step further by introducing advertising into the actual game play, which is fed to the game via an internet connection. According to an old article by AdAge, in-game advertising will take the form of billboards and posters, as well as the possibility of outdoor executions.

I can already see the hundreds and thousands of people complaining about this notion: “no more advertising in The Sims 3!” And who can blame anyone for feeling like that? When you play a game, the last thing you’d want to see is an advert for Bio Slim or some arbitrary product that has absolutely no relation to you. Also, aren’t we exposed to ads enough already?

Initially, I was excited to hear about the fact that in-game advertising will be emphasized, especially when considering the possibilities. Personally, I feel that unless a so-called in-game billboard or poster runs in conjunction with say a product launch where Sims can actually try out the product, wear it, etc., those billboards and posters will have the same effect (or should that be ineffect?) as a banner ad on Facebook. Yes thousands will see it, but most will have no relation to it whatsoever and in the end it impacts negatively on the Sims 3 game.

Product-orientated brands such as clothing and other usable items can definitely add value to a player’s experience of the game, but I think it would be important for Maxis or EA (or whoever is running in-game advertising) to approve advertisers at their discretion; not just chase the possibility of an additional revenue stream. I saw that the Toyota Prius is on promotion at the Sims 3 Exchange, and you can download it and make sure that the rest of your neighbourhood stays green.

Of course, whenever advertising is introduced on a website, social network or in a game especially, it constitutes co-branding at a certain level. As a player, being able to get your hands on the latest iPod touch would be awesome, but conversely if you only have the option of getting in touch with a JNC SSFT-4200BK , my personal view is that it would reflect negatively on The Sims brand. This, however, could just be because I’m in marketing and tend to overanalyse things…

It’s not the first time advertising has been used in the Sims. H&M previously introduced an expansion pack that included all the latest fashions from the department store, and an Ikea expansion help Sims players out with some nice furnishings for their simulated homes.

I’ll post updates as they come a long, after I finished constructing a nice log cabin for Venter van Staden.

Screen Digest, GroupM: In 2008 advertisers spent roughly $55 million on dynamic in-game advertising; http://tr.im/mAJL

Welcome to another discussion here at leetgamerblog.com, a discussion concerning flaws of gaming life.

There always will be an ad everywhere you look. No matter where you go, you just can’t hide from these buggers. First, there was the basic newspaper ad. Then, human kind has developed a higher intellectual level, and thought about putting ad panels on the streets ! Then, of course, when the TV was invented, the golden age of advertisements has begun.

30 minutes of the show you’re watching, then 30 minute commercials… If you could imagine how much a company would pay to get a spot in TV advertisements at your local channel broadcasting station… They pay very much for it. 60% of the spectators, however, don’t consider all the commercials, and usually go and have a loo break.

More recent, however, games started having in-game advertising as well. Looks like we didn’t get rid of them in the virtual world either, eh ?

Most gamers, including myself, consider this an act of greed. However, in-game advertising is way more expensive than normal publicity. So companies with less revenue can’t ask game developing companies to post their name in the game.

However, companies such as McDonald’s do have the possibility to do this. And they already have !

You’re lovin’ it, aye ? Well we’re not. In fact, I hate in-game ads. In my opinion, gaming is a way to escape the real world, to forget about all the problems you have in it.  It’s like a slice of heaven. Not only are these acts of greed, but it also devoids this concept of nostalgia and melancholy.

Companies that do this to us are surely companies that act for it’s best interest. Gaming companies that make deals with such companies, are companies that don’t deserve our respect !

Lets be serious and talk about MochiAds.com today, because I want their url icon off my desktop already. I have a bad habit of dragging URL’s to my desktop if I think I might mention them here on the blog, and I’m in bad desktop mood this morning. It’s cluttered and must be purged. Like Lost-style, dumped in a mass grave.

 So what’s up with Mochi Ads?? They simply give you  code to run an ad before your users get to play the Flash game you’ve made. Like Adsense for Flash games. Obviously you need tons of traffic (like Adsense) to make any real money. But since many of you are Flash developers,  they’ve got some serious cash to give away VERY soon for making a decent Flash game. Like April 3 soon.

1rst place is $5000, 2nd is $3000, and 3rd is $2000. Plus another 5k prize from FreeSpin3D if your game uses their 3D in it Here’s the full details… http://www.mochiads.com/contest/jan09  …so make it a productive weekend. Or not. I mean, who really needs 5000 bucks right? Seriously, this is a contest ANY of you could win. This isn’t like those HGTV dream home contests my mom enters, where she and every other housewife submit an entry a day, so there’s millions of entries.  There aren’t that many Flash developers out there. And only a small percentage of them have probably ever heard of this site. 

So go for it!

Nice homepage graphic, right

Psst. Also, there’s some Flash gaming tutorials here.

With all of this despairing talk of recession and cutbacks, I am starting to believe that I may be the only optimist left. I know this is not true but unfortunately there is an over-abundance of ‘Negative Nelly’s’ spewing negativity into the public arena. The consumers have not left the market, just a disproportionate amount of their money and along with it their spending. These consumers still need to be entertained, know about the latest fads, products, public service announcements and world-causes, despite the state of the economy. These consumers will seek out the information one way or another, so why not cater to them? Which communication method will you choose to deliver your message to a vast group of people with varying education levels, ethnic make-ups and socioeconomic circumstances? I place my money on the Internet, more specifically, podcasting and in-game advertising, as a means to deliver the message consumers.

It has been estimated that there are roughly 6,710,029,070 (estimate from 2008) in this world. Of this overwhelming number, 1,581,571,589 people use or have used the Internet. While that figure is not half of the world’s population, it is almost one-quarter of the world’s population and a substantial number none-the-less. Lately, we have been hearing of massive layoffs in the media industry from industry leaders (i.e.: Clear Channel or ABC), not just from Mom n’ Pop television, radio or media companies. Advertisers are cutting spending on all levels and cable television is a notoriously expensive medium to purchase. Does the price of advertising through these more expensive mediums translate into employee lay-offs? Perhaps that is the case, however, I am not here to unearth that mystery but instead offer an alternative to pricier advertising channels. I offer as my opinion, which I will continue to develop and expand upon over the coming weeks, Podcasting and In-Game Advertising as an alternative to traditional media for advertising.

Is anyone completely familiar with Podcasting? I cannot give you a technical definition but from how I understand it to work, this is a very unique and customizable medium.

What is Podcasting-(description borrowed from the Podcasting Tools website)

“Podcasting is online audio content that is delivered via an RSS feed. Many people liken podcasting to radio on demand. However, in reality, podcasting gives far more options in terms of content and programming than radio does. In addition, with Podcasting, listeners can determine the time and place, meaning they decide what programming they want to receive and when they want to listen to it.”

I do not presume that this is a cheap medium but cheaper than some alternatives. The content is already provided and an advertiser’s commercial or message is just being inserted into an audio broadcast. Globally, it has been estimated that by 2012, there will be 245 million MP3 players in circulation amongst the Earth’s inhabitants. This provides many opportunities for media companies to create entertainment for these media players and opportunities for advertisers to create brand-strengthening messages for the owner’s of these devices to hear. Listeners download the broadcast to their portable MP3 player, I-Pod, I-Phone, cell phone or computer and can listen to the audio program at their own leisure. An advertiser has the opportunity to reach their target consumer on different levels and several different times because their message was heard in the original broadcast (via: radio or streaming audio online) and then, downloaded via podcasting for the listener to listen to again. If an advertiser chooses to advertise in a specific on-air program, then they already know whom they are targeting and who will be receiving their message.

Another medium that I am intrigued with is In-Game Advertising. In-Game Advertising in some respect, kind of works like product placements in television shows. I would not be surprised to see not only a sponsorship for a company like Froot Loops, but also product placement during the game on a children’s video website like Nickelodeon and perhaps, even a mini-break during the game for a short Froot-Loop ad to play. If you are targeting consumers via In-Game Advertising then you are looking for very specific persons. This medium will not reach everyone (because not everyone plays online games) but it still has the opportunity to reach a large amount of people. Online games are diverse from mind stimulating games like Sudoko to football or even bowling. Any advertiser would see results using this medium because there is such a diverse group of games with a diverse group of users. Marketers could target consumers according to their gaming preferences.

Check out this example from CNBC: “In Game Advertising”

Google has even gotten into the game. The Google AdSense program will place content specific ads on your website and insert video games with ads onto your website (along with AdSense for RSS Feeds, Web searches and Mobile devices) for profit.

Check out this demo from Google: “Google AdSense for Games: In-Game Advertising”

Both podcasting and in-game advertising provide customizable and unique opportunities for advertisers. These two marketing tools are valuable because they take much of the guess work out of figuring out if you reached your specific market because the elements that makeup these tools have been created to reach select types of people. Luckily, there are millions of games and audio broadcasts out there to reach and appeal to the millions of Internet users with millions of opinions and millions of personal interests.

This is a topic I have been meaning to write about for a while. As revenue models are changing throughout all industries, in particular, the video game industry seems to be very successful at finding new ways to generate the dough. The rise of DLC and microtransactions signals that companies are aware that no longer does the opportunity for increased revenue stop when a a product goes gold and is shipped out. Similarly, with the surge in popularity of online gaming on consoles, it has become easy for a company to release new content for purchase (and even easier for consumers to download).

While I am torn in my feelings on “DLC” and “microtransactions” (from a business perspective, it is genius.. from a consumer perspective, why should I pay for something that should have been included in the original game or released for free in a patch), one form of revenue that I am not opposed to is in-game advertising. Sure, if I am playing Fallout 3, I might not want to see a blown-up “Pepsi” machine as I am trying to take down some Super Mutants in the D.C. area. But in-game advertising is effective in other genres, and in particular, in sports video games.

Do I mind seeing a replay in Madden brought to me by “Subway $5 footlongs” (mmm. Subway…I digress). Absolutely not! If I were watching an NFL game on TV, I would be expecting to see sponsors everywhere. On billboards, on the field signage, before commercial breaks.. hell, I wouldn’t be shocked if Mr. Ocho Cinco himself chomped down on a footlong after scoring a touchdown (if he ever gets into the endzone again).. the point is advertising is everywhere in professional sports. The fact that it is now included in sports video games only makes the sports video gaming experience that much more authentic.

If I am playing Fifa, I love seeing signage along the borders of the field. Similarly, seeing “NBA – Where Amazing Happens” along the benches of players in NBA 2K9 (shout out to NBA Creative Services!) is nothing short of the experience I expect from watching the game on television or attending it live. In-game advertising just works. In addition, it is a great way for sponsors to become aligned both with sports brands and video game brands. See, everybody wins!

As much as President Obama (don’t worry, I am not going to get political.. although one of my life goals is to get into a pickup game with the Presidential baller) continually tells parents to “have children put down the video games”, even he recognized the potential in in-game advertising. If you played Burnout Paradise during Obama’s campaign, you probably sped down the highway and caught a glimpse of Barack on a billboard or two.

So, in conclusion… keep the ads coming. They are effective in many ways. And now I am going to go grab some Subway (rough economy, $5 is a great deal).

This is going to be a long one, guys. Be warned!

First of all, let’s clear some things up. Before I go on and on about what I think, I just want you all to know the written down definition difference between the three because, as far as my research goes, most people on the Internet use the terms interchangeably when they shouldn’t. Just adding to the confusion, people!

Subliminal Advertising: messages that are received subconsciously, below a person’s perceptual threshold, causing a desired response.

In-Game Advertising: refers to the use of computer and video games as a medium in which to deliver advertising.

Product Placement: 1) Visibly featuring branded products or brand names in a movie or television program. 2) Paid verbal or visual brand exposure in entertainment programming

Great, now that that’s out of the way, lemme start talkin’!

Subliminal advertising and messaging first became popular in 1957 when market researcher, James Vicary, claimed he increased the sales of Coca-Cola and popcorn in a movie theater by inserting into the theater’s film the phrases “Drink Coke” and “Eat popcorn” every five seconds, but only for a fraction of a second so people didn’t know they had seen it. This idea wowed the advertising world but because Vicary refused to disclose details of his study, people doubted him and the idea of subliminal marketing faded away. Then, in the 1970s, Wilson Bryan Key wrote a book entitled Subliminal Seductions: Ad Media’s Manipulation of a Not So Innocent America. Researchers dismissed the book since it lacked empirical evidence. Over time it has been concluded that subliminal messaging is not a viable marketing communications tool because there is absolutely no proof that it actually works. In 2000, however, an “accidental” (they claim it was an accident but…) subliminal ad ran and had to be removed from television. A commercial for Republican nominee George W. Bush had a brief discussion of the Democratic Party and the word “RATS” was briefly flashed. The producer said it was an accident from the cutting of a frame that included the word “bureaucrats” and that they were not attempting to use subliminal advertising. Accident? He was elected, after all. Coincidence?

In-game advertising is on the rise. In 2005, $56 million was spent on in-game advertising and Massive Incorporated, a company that deals with in-game advertising, estimates this amount to grow to $1.8 million by 2010. Although there has been gamer backlash against in-game advertising in the past, it hasn’t stopped advertisers from incorporating their brand names or their messages. In fact, Nielsen Media Research has announced a new video games ratings service called GamePlay Metrics to serve in-game advertisers. I guess it’s pretty serious.

Throughout my research I also found out there are a few different kinds of in-game advertising and not all of it is for the sole purpose of getting you off your butt and into a Footlocker. “Incidental in-game advertising” is incorporated into video games through billboard-like advertisements or blatant product placement in order to create a more realistic gaming environment. The gaming company has to get permission to use the logos, their use inside the game does not serve to raise awareness so they are technically not advertising; they’re just making the game more life-like. Many sports games include billboards around their playing fields to make the game experience more like what is seen in person or on television. A lot of games also include brand-name products as a status symbol within the game: the Grand Theft Auto series includes guns such as the ColtM1911, Micro Uzi, AK-47, and M16, all recognizable, and expensive, weaponry. Racing games often opt to use Lexus or Lamborghini to up their status as well.

Then there’s something called “dynamic in-game advertising.” This is used to create awareness and entice a player to buy, watch, or become interested in something. Growing Internet game activity has led to a growth of this type of advertising because the ads themselves can be altered by an agency for geographical regions, time of day, and more. Information about the ad can also be sent back from the player regarding advertisement performance or effectiveness. Data such as time viewing the ad, viewing angle, the type of ad it was, is all sent back to the agency and they can determine how to better suit their ads to their gamer clientelle. Games such as Second Life actually sell their virtual real estate to companies in order to advertise their name or, if they are a new company, get feedback on their prospective clients. In October 2008 a billboard ad was put into the game Burnout Paradise that featured Barack Obama and reminded gamers to go out and vote early. Electronic Arts, the game’s publisher, confirmed that the Obama campagin paid for the ad and that it marked the first time a US presidential candidate has used in-game advertising!

Researcher Michelle Nelson found that in-game advertising can be called effective because the gamer is “actively involved in the game and the products appear as a part of the background scenario. As long as they don’t interfere with the game, they will likely be considered simply ‘a part of the game.’” She also mentions that advertising via video games is successful by just looking at the numbers of people playing the games. “The potential reach for advertisers is enormous, with an estimated 145 million Americans admitting to playing games.” A 2005 Nielson study has actually found the in-game advertisements to be effective, resulting “in a 60 percent increase in awareness for a new product and that animated 3-D ads achieved twice the recall of static billboards.”

One gamer blogged  that advertisements within certain racing games are almost becoming subliminal messaging since they zoom by the player so quickly. Did I just see an ad for Puma or was that my imagination? Either way…I really want a track jacket…

Has product placement gone too far? Are viewers used to it? Is it, much like incidental in-game advertising, just there to make us feel more involved in the television show or movie we’re watching? I’m sure we all remember the 90s classic Wayne’s World and it’s mockery of product placement, but how does it work, and is it becoming too much?

One Washington Post article  writes that although product placement has been going on since the start of visual media it has gained in popularity in the past recent years “in part because TV networks are looking for more ways to make up for declining ad revenue and a rapidly fragmenting audience that is finding entertainment on the Internet and on mobile devices.” Media research firm PQ Media released a study in 2005 that found “64 percent of products placed in films or TV shows are not paid for, but rather arranged through some kind of barter in which the show provides exposure in exchange for products or services.”

One example of a company not starving for spotlight in movies and television shows is Apple. In Sex and the City what does Carrie Bradshaw do all of her work on, all the while having the logo prominently displayed?

In The Office, wasn’t it an iPod that boss Michael Scott got to wow his coworkers at the Christmas party? “It’s not an accident,” says Tim Bajarin, principal analyst at Creative Strategies, a high-tech research and consulting firm. “Apple was one of the first technology companies to hire someone in Lost Angeles to get Mac products prominently displayed in hot TV shows and movies…This is something Apple works at.”

Is it getting excessive? A USA Today article  explains that in order to “hype the [2006] fall TV season, CBS plastered pictures of its shows’ stars on postage stamps and across the insides of elevator doors. It laser-coated its eye logo on more than 35 million eggs, and carved the name of a new program…into a 40-acre Kansas cornfield.” The article suggests that “ad-zapping devices—and a decrease in consumer attention spans—have created doubts about the effectiveness of traditional TV, radio and print ads.” In order to counter this, marketers are becoming more invasive and more in the face of their viewers. “Advertising is so ubiquitous that it’s turning people off,” Rance Crain, editor-in-chief of Advertising Age said. “It’s desensitizing people to the message.”

Some suggest marketing is getting too loud, too in your face, citing that, according to PQ Media, marketers spent 71% more–$941 million—to integrate brands into TV shows in 2005 versus 2004.

So, what’s the deal? What’s it all about? Are you aggravated by all this promotion? Do you find it sneaky or more about creating a real-life environment in non-real-life entertainment? Seriously guys, I’ve given you the info, now gimme your thoughts!

PS: Here’s one article that discusses product placement objections. Take a look and let me know what your thoughts are!

While consumers continue to cut back on spending during this economic downturn, there’s one area where we’re not so willing to concede: video games.

According to eMarketer, U.S. Internet users will reduce the amount of money spent on dining out by 57% while only 35% of respondents to the survey – which was conducted by NPD Group – said they’d give up game time.

That’s good news for video game sponsors and in-game advertisers when you consider that more than 80% of American adults ages 18 to 29 are gamers, according to Pew Internet & American Life Project.

Now … if only the Wii knew how to work an oven.

On december 13, i made a presentation on in-game advertising, very hot topic, i remember being “booed” during a presentation to some “experts” when i said it would be the most effective medium for the 18-34 demographic (that was  back in early 2002 ( i guess i was very young back then, thus not looked at seriously, why is age so important when it comes to insights and ideas?) Anyway, the presentation is summarized here for you.

Presentation Summary

Why video games? (Video Gaming shifts (trends)

In the recent years there’s been a shift in behavior towards video gaming. It is a more accepted hobby that the non-nerdy type doesn’t feel ashamed of engaging in anymore.

The fastest growing category of video gamer is the casual gamer. This rapid ascension is mostly related to the emergence of mainstream titles such as Guitar Hero, SingStar, Wii sports and Rock Band.  Casual gamers constitute a group of video gamers that     most often don’t consider themselves as gamers, but put in the right context or given the opportunity, they will partake in the activity.

The success of the Wii comes from the brilliant decision from Nintendo to only target the casual gamer. That position explains why the console didn’t put an emphasis on the quality of the graphics but rather the playability, and the interactivity between the games and the gamers.  Most of the games in the Wii’s line up facilitate social gaming, (also known as party games) where video gamers can play together in numbers.

Another recent trend is the expanding array of video gaming platforms.  Games can now be enjoyed anywhere and anytime. The original portable video game system were created by SEGA and Nintendo, who where the early innovators. Now, the portable gaming segment includes: Cell phones, PDAs, Laptops, iPods and more.

The new iPod touch and iPhone are emerging as serious competition for the other portable consoles. One can argue that Apple’s success was modeled after the Sony PSP that successfully combined portable media (music, movies, pictures) with video games. But the key element that Apple products have is pricing: $.99–$7.99 for a game. Another advantage is the touch-screen, and motion sensor compatibility with some of the games. Interaction with certain games (bowling, racing games) mimics the Wii’s popular and unique gameplay.

It is also important to note that user generated content is the latest video gaming frenzy. When Halo 3 came out, there was 30% more uploads of user generated content (machinima, maps, etc) than YouTube videos in the first month. Then there’s little big planet, where you can create your own levels, share them online, and now monetize them.

As a result of all those shifts in the video gaming segment, the gender demographic and the age demographic is quickly changing.  Today the average age of a video gamer is 32 yrs old. Video gaming is not a male dominated market anymore, with 40% of the population being female gamers.

Why In-game advertising? (Tips, steps and potential)

In-game advertising is a very promising medium that a lot of people are sleeping on. The potential of this particular medium is “endless” as provides room for unique and groundbreaking campaigns.  Here’s a selection of tips and steps to observe for a successful campaign:
•    Know your brand: that includes understanding who you target audience is and what medium are they receptive the most. Very important step, as it will determine what genre of game you should advertise in.
•    Set clear goals for you brand. In-game advertising much more like online advertising is highly measurable.  By setting goals you can then easily track them and see what’s working or not working in your campaign.
•    Produce in-game creative instead of trying to use preexisting creative from other medium.
•    Create campaigns which tie-in other media. That will allow more interaction between your product and the audience. (Transmedia branding). For example you could start a campaign within a game, then complete it with an online registration (email) and text messaging updates (innovative sweepstake scheme).
•    User generated content: gift and curse. It will give the opportunity to observe what the audience creates based on your brand. Unfortunately no control can be exercise over the light in which it would be displayed. One thing for certain, it will generated a lot of buzz around your product as more content is generated.

Overall, the opportunity made within the video gaming in recent years has greatly improved and facilitated the implementation of coherent advertising campaigns. It is true that video gamers have been complaining about the “clutter” it creates, but in the end they’re willing to cope with it, as long as it keeps the cost of games down. Creativity, and interactivity are key factors to a successful campaign. With a well thought of plan, there’s no reason not to get in the game.

By the way,I’m still looking for an effective way of putting my slides up (i don’t believe in slides or ppt or whatever, i think they kill the flow of a presentation, but some people still like it, so i have them) any ideas, suggestions let me know.

ok ok ok, i said i would be posting on a timely manner but it didn’t really happen…sorry about that. Before i go any further…

Merry Xmas to you and your families, Many blessings for this holiday season.

Now,

i’ve been doing a lot of research and presentation on the topic of In-game advertising( my next post is going to be a summary of one my latest presentation on the topic) also, i’ve been looking into that advertising $+Consumer+recession picture (a summary of that in the next post too) i’m curious to find out what people think, especially that the new year is coming. As a strategist, it’s important for me to know what people think of the topic.

Also i just got signed up as a writer for a japanese TV show(weird couldn’t get anything when i was there but now…) hum…speaking of Japan, i also got this gig here writing, producing, costume designing and art directing these plays for a Japanese group. I’m working on a t-shirt design concept for the group(identity work) very excited about it. I’m going viral with the campaign, we just shot some videos and that should be up soon (my time soon…lol) oh well good things going i think.

With a recession stifling business activity across the globe, what economy is expected to generate growth in 2009?  The virtual world economy, of course!  I believe that with consumers affording less these days, they’ll naturally spend an increasing amount of time online (in social networks and virtual worlds) and in video games.  Consider the following chart from Linden Lab:

Monthly User Hours from Second Life residents is at an all-time high.  Linden Labs’ data also shows that User to User Transactions had strong growth in 2H 2008 totalling over $100MM in Q3 2008 alone.  Strong growth should continue through 2009 for Second Life and other virtual worlds.  The virtual world platforms will benefit both from new member sign-ups, as well as increased activity from existing members.  We should see a network effect take place, where new users sign up via encouragement from their in-world friends.

Sale of virtual goods will also see strong growth.  Jeremy Liew of Lightspeed Venture Partners estimates that Facebook is generating virtual goods sales at a clip of $35MM per year.  That’s pretty good – and I expect that virtual worlds platforms can benefit from similar volume/revenue.  After all, virtual worlds are a natural venue to exchange virtual goods.  Linden Labs tracks user to user transactions and I think a trend in 2009 will be user to merchant transactions, in Second Life and elsewhere.

Another area of interest is in video games, where in-game advertising and commerce seem to be a natural fit.  I believe that gamers are more engaged in their activity compared to virtual worlds users or social networkers.  And while that may result in sensitivity to advertising, I think that relevant and useful ads can receive significant response rates and that in-game commerce can be huge.  We’ll want to watch this area in 2009 and beyond.

In April we launched in-game advertising with Google and in July, we launched in-game transactions with Paypal. Today, we’re proud to announce the launch of a premium campaign with Procter & Gamble and Herbal Essences  inside our Geo Challenge game in the UK.

We’re big believers in a game play model where the core of the game play is free and players can choose to pay for enhanced game play or by engaging with ads in the game. In addition to our in-game video  ad model, we’ve today teamed up with Herbal Essences to provide an entirely new game mode in Geo Challenge, called ‘The Great Escape Edition’ – giving something fresh to our players and a fun way to communicate the new Herbal Essences range from Procter and Gamble.

We hope you’ll like it! Those of you in the UK can try  Geo Challenge ‘The Great Escape Edition’ by clicking here. Everyone else can check out the video above.

Let us know what you think – we’d love to hear your thoughts on the updated game.

jakiś czas temu podpisaliśmy kontrakt z IGA Worldwide i jesteśmy wyłącznym przedstawicielem wspomnianej sieci na Polskę. Dla tych których nie wiedzą – jest to sieć reklamowa w grach komputerowych dzięki której możemy wyświetlać w takich tytułach jak Counter Strike, Colin McRae, Tracmkania, Guitar Hero i inne wysoko budżetowe gry. Tak jak napisałem w tytule w IGA Worldwide liczą się tylko dobre odsłony i aby reklama została zliczona musi spełniać trzy podstawowe warunki:

1) Rozmiar minimum 2% ekranu
2) Czas pojawiania się nie mniej niż 2 sekundy
3) Kąt oglądanianie więcej niż 80 stopni w stosunku do płaszczyzny reklamy (w dowolnym kierunku)