Advergaming to Hit $4 Billion in 2008

Next Generation reports the somewhat disheartening statistic that advergaming is likely to break $4 Billion by 2008. From the article: "TWST points out that gamers are much more receptive to 'advergaming' than other potential consumers who block pop-up Internet ads or mute television commercials because in many cases, ads in games provide realism. However, many gamers would disagree with that notion, saying that ads can often be intrusive." We recently reported on the poorly thought-out Counter-Strike Subway ads. Here's hoping they're more well considered that than those ads.

Comments

It's ok if we reap the benefits too!

[gasmonso]

If the advetising doesn't detract from the game and the revenue reduces the cost of it, then I'm in. If it doesn't than what's the point from a gamers perspective?

http://religiousfreaks.com/

Re:It's ok if we reap the benefits too!

[ryants]

and the revenue reduces the cost of it

I wouldn't hold your breath if I were you.

Not so much receptiveness

[kevmo]

Speaking for myself as a gamer, it is not so much as being receptive to the ads as it is the fact that they are harder to block. Web page ads are easily blocked with adblock, but for an online game with ads, you would need to modify (hack) the client to get rid of them. Such hacking could be detected, and could result in you being banned, so we are just forced to deal with ads in games when they appear.

Re:Not so much receptiveness

[JUSTONEMORELATTE]

...so we are just forced to deal with ads in games when they appear

Or ignore them, or choose a different game.
Today, you are the consumer, paying your money for a game title. If the trend flips to the point where you are a product, being sold to the advertiser, you just need to decide if you want to be sold or not.

Just something to ponder.

Re:NFS Series

[VlartBlart]

"mass-ass-mofo" - that sounds like a wide-bottomed-unsociable-idiot.

What I meant was "MAD-ass-mofo"

sorryandallthat.

I smell a fresh load of bullshit

[SmallFurryCreature]

Why? What is the state of advergaming right now? Almost non-existant yet somehow in a mere two years it will be worth 4 billion? That is fantasy accounting. It probably goes like this, 1st month 1million, 2nd month 2 million wich can only lead you to conclude that in 48 months you must have reach 48 million. It is called making a future prediction with not enough historical data.

Now we just had a story about planetside getting ads. Another MMORPG that I can't remember right has been doing that for over a year now. Nice but I would hardly use their "success" as a way to predict what is going to happen in two years time. The most popular MMORPG's right now are fantasy making it hard to fit ads into them.

I also remember games like Grand Prix Legends that had to jump through hoops to get permission to use the authentic ads in the game of the era. Far from being payed most companies will sue you if you use their ad slogans in your game without permission.

What company would really want to be associated with a GTA San Andreas especially now that it has been shown game makers can't be trusted? What will be in the next version, a hidden level of shooting kittens? A marketing nightmare.

It is the same reason a lot of car companies do not give permission to use their real car names in games with violence or even just realastic damage modelling. You do not want customers of you latest super car to see exactly what remains of the car when you take it to 180 on the open road.

EQ2 pizza deal seems to have been removed. Ad based MMO's are the ones who couldn't hack it as a subscription game. Most companies do not want to be associated with the wrong kind of game.

Sure there will be a market but 4 billion worth? I doubt it. Reminds me of the internet bubble.

Re:I smell a fresh load of bullshit

[kaschei]

That is fantasy accounting. It probably goes like this, 1st month 1million, 2nd month 2 million wich can only lead you to conclude that in 48 months you must have reach 48 million. It is called making a future prediction with not enough historical data.

Close... but you underestimate the power of geometrical progression! If they actually see 1st month = 1mil, 2nd month = 2mil, well obviously the third month will be 4mil and the fourth 8! So in your 48 months' time advergaming will almost definitely* be worth $2.81x10^17 dollars a MONTH! Better get in on the ground floor...
*Technical fiscal prediction term meaning "I can say this with a straight face"

Re:I smell a fresh load of bullshit

[Red Flayer]

"Almost non-existant yet somehow in a mere two years it will be worth 4 billion? "

Yes. Considering that 2006 advertising spending will be over one Trillion USD, as it was in 2005 and 2004, just for media advertising, why not?

TNS report on 2005 1st-half advertising

Add in the fact that the video game industry is now by some methods of calculation now larger than the movie industry, why not?
There is a tone of advertising money out there desperate to find its way into that prime market of young males with disposable income.

Re:NFS Series

[TheLoneDanger]

"But if I'm tromping through Midgard and see a Radio Shack add, I'm going to be annoyed."

The simple decision made by publishing companies will then be to not make any more games where they can't place ads. No "Midgard" means no complaints about the ads not fitting in.

It's most uncool

[Firehed]

I'll tell you, that's the one thing that REALLY pissed me off in Splinter Cell: Chaos Theory. Otherwise, the game was awesome. But when the computer screensavers are showing ads for upcoming movies and restaurants (War of the Worlds comes to mind), it's just not right. I suppose if they can predict what movies are coming out in mid-2007, that's one thing - the context would (almost) work. I don't know too many people who set movie ads for screensavers, but I could deal with billboards, even if I do hate the idea. What really gets me is they do update over time - if that's built into the game, sobeit, but I'd be very surprised if they don't "phone home" for the latest update (unless that's what the patches are really doing). And the cronies that I had to lay to rest talking about how the next Prince of Persia would probably be game of the year... don't get me started. I was happy to let them meet my stealthy KnifeOfDoom.

Someday, companies will realize that advertising is more or less ineffective now (or is certainly losing it's usefullness). Make a product that stands out from the rest, not burn it into our retinas. I never use ads to choose which products to buy, but I constantly decide who NOT to buy from based on their ads. Anyone that tries popups, flashy annoying crap or annoying background music (on the rare occasion I watch TV anymore) instanly goes on my ever-increasing brand shitlist. And unlike a lot of people, I stick to it. I'm almost to the point that anything less subtle than a GoogleAd is too much. Luckily I don't see ads -ever- online, but I stick with it for any advertising form. Places that put out-of-place ads in games are no-nos for me.

Re:If the gamers still play...

[ultranova]

Personally...I'm not throwing my support behind any game that puts in ingame ads. I'll stick with console games if I have to.

Why ? I doubt that console game makers are less likely to turn away extra profit.

I wonder if pirates will start providing no-ad patches, on top of no-cd patches, and therefore increasing their already valuable contribution to the gaming community ?