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Game Advertising Expanding, Becoming Dynamic?

Thanks to Business Week Online for its feature discussing the rise of videogame advertising, as it charts "spending on in-game advertising, currently estimated at around $200 million a year today worldwide, [and which] could reach $1 billion by 2008." As well as kid-oriented gaming sites such as Neopets.com, where "a player might stop by a Disney theater where he can play a Walt Disney movie-related game to earn Neopoints - good for buying shop space and land in the game", the article mentions Massive Inc., an "in-game advertising specialist" which is now signing up advertisers for "campaign-based advertising" in forthcoming titles from Ubisoft and Atari, explaining the innovation by describing a possible scenario: "The gamer goes online to play a racing game, for example, and a batch of ads is served. When a gamer plays offline, Massive continues to serve ads. The ads are integrated into billboards, posters, and even into the plotline of the game, and they change in real-time."

17 of 39 comments (clear)

  1. Cheaper? by PhuckH34D · · Score: 2, Insightful

    So... Does this mean that games will be cheaper (or free) in the future?
    Probably not I guess, but they should be IMHO.

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    1. Re:Cheaper? by abandonment · · Score: 2, Insightful

      no, probably littered with spyware as a result of the ad-monitoring that goes on - why should games be able to track our every action and provide ads but not online? is this not spyware?

    2. Re:Cheaper? by MarkPNeyer · · Score: 2, Informative

      A game "should" be cheaper if there is a fluctuation in market supply or demand - the price of an object "should" have nothing to do with the cost of production, aside from being higher. If these new ads lead to a decrease in the demand for games, then in a true market situation the price of games would fall; unfortunately the economics of video game distribution have always been screwed up. Otherwise, if demand for the games is unchanged by the ads, and supply stays the same, then the price shouldn't change, even though the producer is getting more revenue from the ads.

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    3. Re:Cheaper? by anon*127.0.0.1 · · Score: 2, Interesting

      The other scenario which could cause game prices to fall would occur if the in-game ads turned out to be extraordinarily effective. Then the game publisher might drop the price of the game to get more viewers for the ads, offsetting the lower profit from game sales with higher advertising revenue.

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  2. I'm not so sure people will bite... by chrispyman · · Score: 2, Insightful

    Considering the fact that you have to pay $50 for the latest title, I don't think too many people would enjoy playing a game littered with advertisements. For the most part I find them distracting but I suppose that if the games themselves were free (advertisement subsidized) I suppose I could live with 'em.

    1. Re:I'm not so sure people will bite... by Unordained · · Score: 3, Insightful

      Do you think most people would put up with the in-between "cheaper, but not free" step? Seems like they'd have to jump from gamer money to ad money, or people might feel they're not getting a good enough deal in the transition period.

      What I fail to understand though is how advertising does -anything- anymore. Too much of it. Targetted ads don't help me either -- if I want something, I generally already know I want it, and will do my own searching for the best product and price. If I don't, telling me about it doesn't help either -- I just don't care.

    2. Re:I'm not so sure people will bite... by nacturation · · Score: 4, Insightful

      Considering the fact that you have to pay $50 for the latest title, I don't think too many people would enjoy playing a game littered with advertisements.

      People happily fork over $50 for a Nike shirt which has a huge Nike advertisement plastered on the front -- the swoosh logo. Why people pay a premium effectively to advertise company logos is beyond me, but I honestly don't see the average consumer caring. If it distracts from the gameplay, then people will take notice. However, for games which integrate advertising in a real-life way (eg: billboards along a city street, ads along the boards in a hockey rink, Smith & Wesson shotguns in Doom...) I think people will happily accept it because it's what they're accustomed to.

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    3. Re:I'm not so sure people will bite... by DigitumDei · · Score: 2, Insightful

      Advertising is about brand recognition. Thats why it works, not because it makes people go out and buy stuff NOW, but because when they decide to buy something, they associate it with that brand.

      Now a company that doesn't adevertise in games is going to have much less brand recognition with the game playing public and the company that does. Some people will do their research and buy whats best for them, the rest will buy the brand they recognise.

  3. Great! by obeythefist · · Score: 4, Funny

    So at first I imagine it will just be product placement in games, like the vending machines are all Coke or whatever. You see that today in some games.

    Then maybe some banner ads.

    Then before you know it, you crash your car in Need for Speed because you couldn't see the road because a huge popup was in your way.

    And the flashing "shock the monkey and win your free ipod" ads are all over the place.

    Then we can expect rogue advertisers to get into the swing of things. So in splinter cell, before you can steal the secret plans from the briefcase, you have to read this letter from president mugabe's uncle that says he has TEN MILLION US DOLLARS hidden in geneva that he trusts in complete confidence for you to send your bank account details to him so he can give you the money because of political strife.

    Hopefully we will see some good members of the modding community hack the ads out of PC versions of games. Console gamers are doomed tho.

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  4. Sounds like a bad dream by Datasage · · Score: 3, Interesting

    But its not going to go away.

    You pay $50 for a game, it shoulndt have advertisments so people are going to go for games with this. Well... look at cable TV People pay $50-100 per month for channels that have more commercials. But there is content on cable that you cant get anywhere else. Making a game compelling enough for people to purchase, well, and they maybe wont notice the ads.

    But then, games themselves have been made strickly for marketing. Look at any game based on a movie licence. Ok, they are not selling other unrelated products, but they are selling a movie.

    But there is a good thing in all this, not all game worlds are really compatible with advertised products. Your probably not going to be finding a +1 magic pepsi anytime soon. If you dont like advertising, dont play the games that use it. Just like you dont have to watch movies with product placement(with is about every major hollywood movie).

    I could go on about creating art for profit as opposed to creating art for art, but i need sleep.

    later

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    1. Re:Sounds like a bad dream by bobgoatcheese · · Score: 2, Interesting
      Your probably not going to be finding a +1 magic pepsi anytime soon.
      Oh, is that so?
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  5. Appropriate quote by Spuffin · · Score: 2, Insightful

    "No one ever went broke underestimating the intelligence of the American public."
    --HL Mencken

  6. When done poorly... by wheresdrew · · Score: 2, Interesting
    ..it's crap. Run Like Hell, anybody? The game that had Bawls drinks for powerups and health. POOR

    The Jet Moto series always did it well, though. They tied in the appropriate "eXtrEmE" products whose image (and real world advertising campaigns) matched the game's attitude - Mt. Dew, Doritos, etc.

    Odds are we'll see more RLH-type ads than Jet Moto ones.

    1. Re:When done poorly... by hal2814 · · Score: 2, Interesting

      I agree that Jet Moto was a shining example of how to do in-game advertisement, but Jet Moto is a sports title and sports titles will always have easier times figuring out produce placement and advertisement becasue the real live sport (or sports in Jet Moto's case) that inspires such a game has already worked out advertising logistics.

      Figuring out where to place products and advertisements in something like a new Alone in the Dark game or an Everquest game will probably be significantly harder. I can see those types of games taking the easy way out and resorting to commercials for advertising money.

  7. Ads as part of the experience by neglige · · Score: 2, Interesting

    IMHO there are severaly ways to integrate ads into games, not all of them necessarily bad. I think one of the first games to introduce some advertising was "Theme Park", where from time to time you could see a banner of a UK bank (IIRC the first few screens and the accounting screens). That didn't bother me much.

    Another point is that advertising can make a game more real, e.g. in sports games. In a typical soccer/ice-hockey/... stadium there is perimeter advertising. Using this space for real, in-game advertising creates a more realistic atmosphere. Sure, the banners could all read "ACME Rockets Inc.", but it just wouldn't be the same. Racing cars would also look a bit different :)

    All in all, if in-game advertising is subtle and does not interrupt or deteriorate my gaming experience, I (personally) don't mind it. And this definetely rules out commercial breaks in a FPS :)

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  8. It's not like this is a new concept by Argon+Sloth · · Score: 2, Interesting

    In-game ads have been around for at least 15 years. I'm sure many of the readers here remember seeing Pizza hut signs and logos in the Teenage Muntant Ninja Turtles Arcade/NES game. But out of all the adverts I've seen within games most have been background noise. From the banners lining a stadium in something like Madden to popular music being sneaked in. Other times they're blatent and obvious, like many of Namco's shameless plugs in their games. Most notably the e-mails your character may recieve in Xenosaga about Soul Calibur II. As mentioned in another post (referring to Jet Set Radio) the ad's are chosen to match the content of the game. Sometimes this happens more for the sake of realism, take the Gran Turismo series as an example. One may look at it as if it's nothing more than an interactive car commercial. Another may see it as a very realistic racing game. The type of advertising mentioned by the article goes back to the days of radio and television. When coprorations would produce radio and television shows so that they could advertise their products nearly exclusively. For one reason or another this practice was pretty much phased out in television.Although it's unlikely that we'll see something like "Jolt Cola presents Slashdot the game" in which text would blur as your caffiene levels dropped while sifting through the trolls, flamebait and longwinded posts to earn your mod points. Don't act so surpised when you see Laura Croft driving a jeep as an interlude to the jump-jiggle-shoot that's made Tomb Raider so popular. Lets face it. Comercial entities may not be paying for the production of the whole game/tv show/radio programme anymore. Yet this doesn't mean they don't offer some funds for development in exchage for some product face time.

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  9. Marketing department: by CarrionBird · · Score: 2, Funny

    Definition: A bunch of mindless jerks who were first against the wall when the revolution came.

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