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In-Game Advertising Poised for Explosive Growth

bart_scriv writes "A new study from Yankee Group predicts a fivefold increase in the in-game advertising market over the next four years. The market, which grew from $34 million in 2004 to $56 million in 2005, is expected to reach $732 million by 2010. Although in-game advertising is currently controlled by a small number of independent networks (IGA, Massive, etc.), the study suggests that the larger game companies will eventually dominate the market by bringing ad serving in-house."

65 comments

  1. So how would an in-game ad-blocker work? by Paul+Bristow · · Score: 2, Funny

    Inquiring minds want to know!

    --
    - Paul
  2. Which is it? by cpirate · · Score: 2
    So which is it 732 million or 2 billion?

    http://games.slashdot.org/article.pl?sid=06/04/14/ 1510238

  3. I can see it now.... by Ugly+American · · Score: 5, Funny

    "This headshot brought to you by Barrett Rifles."

    --
    For sale: one sig space, gently used. Inquire for details.
    1. Re:I can see it now.... by Guppy06 · · Score: 1

      "Another headshot, you're pretty good at that. Have you considered the Marine Corps?"

  4. So who actually thinks this is a good idea? by JWallyR · · Score: 3, Insightful

    I'm too lazy to look up and link, but I'm sure lots of other regulars around here have read about the horrible failures of most modern advertising to really do anything other than annoy and frustrate the "target audience". I'm not a big fan of the GTA series, but I've been around people who were, and listening to the parodies of actual radio advertisement and seeing the parodies of billboards was a clever and fun way to make the game world more interesting. On the other hand, basically every "real world" advertisement put into a game is hideously overdone. I remember somebody commenting on the spammed billboards for some company or other in a recent racing game, and the "dnL" vs 7up thing is just ridiculous.

    The way that things look to me is that two things will end up happening:

    1. The only advertisement that will really continue to flourish are the sorts of things that make it to the Super Bowl commercials, which is to say that they'll actually be entertaining.

    2. "Advertising" as an industry will basically keel over and die, because products will eventually reach a point at which they will stand or fall on their own merits. The internet means that the exchange of information is certainly possible; all that remains is for people to realize that 99% of advertisement has nothing to do with the product and everything to do with making as much noise to get as much attention (negative OR positive) as possible.

    I really don't care about the advertising industry; I'm not the sort to know or care what's in fashion, I just buy what I want (or need) and any advertisement aimed at me beyond the introduction of new products is doomed to failure.

    1. Re:So who actually thinks this is a good idea? by MobileTatsu-NJG · · Score: 4, Insightful

      " I'm not a big fan of the GTA series, but I've been around people who were, and listening to the parodies of actual radio advertisement and seeing the parodies of billboards was a clever and fun way to make the game world more interesting. "

      Funny you should mention that because one of the most lauded features of Vice City was the use of real songs in the sound track. One of the other laudable features was just how similar to the cities they were portraying the levels were. GTA is one of those games that I think would have benefitted from in-game advertising. Just another step closer to being in the game. Then again, I'm talking about the soda machines advertising Sprite, not CJ stopping to pump up his Reebok shoes.

      "1. The only advertisement that will really continue to flourish are the sorts of things that make it to the Super Bowl commercials, which is to say that they'll actually be entertaining."

      This is a diverse market. One has to be careful about using the word 'only' when making generalizations like this. It's difficult to picture something like Google's text ads going anywhere any-time soon for the simple reason that they're relevent and the message is short and clear.

      "2. "Advertising" as an industry will basically keel over and die, because products will eventually reach a point at which they will stand or fall on their own merits. The internet means that the exchange of information is certainly possible; all that remains is for people to realize that 99% of advertisement has nothing to do with the product and everything to do with making as much noise to get as much attention (negative OR positive) as possible."

      VERY unlikely. Sure, you can go looking for stuff on the internet. Sure, you can go find it and read reviews. Fine, great, perfect. The problem is that there is SO MUCH STUFF to go out and buy that there will ALWAYS be a market for advertising. All an advertisement has to do is make you aware that a product exists. That's it. The work is done. When it's time for you to solve a problem that a particular product can solve, you'll remember it and look it up. This will not go away.

      "I just buy what I want (or need) and any advertisement aimed at me beyond the introduction of new products is doomed to failure."

      I find that rather unlikely. It is inevitable that you are going to find yourself with a problem that a commercial product can solve. Maybe it's a clogged drain. Maybe it's a new video card. Maybe it's dinner time. You're going to call up a list of solutions, and gee golly gosh, an advertised product is going to pop into your mind. Sure you'll do your omework on it. Sure you'll read 'honest' reviews. Sure you'll search for the best deal, as opposed to buying it at Circuit City where it was advertised. Doesn't matter. Advertising still made you aware of it.

      Advertising isn't going anywhere. As long as there are products to sell, there'll be advertisements backing them up. The mode of advertisement might change (i.e. pop-ups, pop-unders, pop-reacharounds...), but the industry isn't doomed to death.

      In other news, I'm going to put on my Nostradamus hat and predict that with the explosion in blogging lately, we'll see more companies offering referall rewards to people who write reviews of their products. I also see the demise of that system happening a year or two later.

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    2. Re:So who actually thinks this is a good idea? by Oldsmobile · · Score: 2, Interesting

      2. "Advertising" as an industry will basically keel over and die, because products will eventually reach a point at which they will stand or fall on their own merits. The internet means that the exchange of information is certainly possible; all that remains is for people to realize that 99% of advertisement has nothing to do with the product and everything to do with making as much noise to get as much attention (negative OR positive) as possible.

      This I think is an interesting point, as there is a Spanish clothing retailer called Zara that is a huge success story and is continuing to grow and make tons of money. The interesting part? Zara has never run an ad-campaign!

      So is advertising dead? Perhaps not completely, we still need people to design and manage brands, those brands probably won't lean on traditional advertising as much tho. Last bit was just my uninformed opinion.

      --
      Some say he is made with ascii, others that he is eyeballed daily by millions. All we know is, he is known as the Sig
    3. Re:So who actually thinks this is a good idea? by Lord_Dweomer · · Score: 1
      As an advertising exec (and a huge geek and longtime Slashdotter)...I must say this has to be one of the most ignorant and naive posts I've read in a long time....lets start with your 1st point...

      "1. The only advertisement that will really continue to flourish are the sorts of things that make it to the Super Bowl commercials, which is to say that they'll actually be entertaining."

      Right, because there is no advertising that is creative and witty that is not shown during the superbowl commercials where it costs 2.4 mil per :30 spot. News flash, I HIGHLY recommend you check out The Cannes Advertising Festival. You will see some of the truly great advertising out there that does not necessarily get played during big spend events. In addition, how in the hell do you explain the ridiculously explosive growth of viral advertising? I'm sure you can't, but I'd love to see you try. However I do agree with your point that truly effective advertising will continue to be forced to be more entertaining in the future as audiences in any medium now have an unprecedented level of control over their media. Don't like an ad on TV? Fast forward it with TiVo. Don't like an ad on the net? Use ad blockers. We are developing highly effective methods of getting rid of advertising so the only advertising that will ultimately get through is that which is entertaining enough to actually make people seek it out. And of course there's your average American who will still be affected by run-of-the-mill advertising because they don't know what an ad blocker or TiVo are.

      "2. "Advertising" as an industry will basically keel over and die, because products will eventually reach a point at which they will stand or fall on their own merits. The internet means that the exchange of information is certainly possible; all that remains is for people to realize that 99% of advertisement has nothing to do with the product and everything to do with making as much noise to get as much attention (negative OR positive) as possible. "

      I had to take a moment to pick myself up from the floor from laughing so hard at this. If you think advertising is going to die...well...I have a bridge I'd like to sell you. As another poster pointed out, sometimes making noise is all thats needed. That is called generating buzz, and when people are talking about your ads or your product, word gets around and people will have that brand name stuck in their heads whether they like it or not. It is true that the industry is going through some MASSIVE changes as all the ancient giant holding companies like Publicis and Omnicom etc. are fast learning that large agencies like BBDO and Foote Cone & Belding and DDB and Saatchi etc. are nowhere near as agile as they need to be in this rapidly changing mediascape. They simply can't react fast enough to changes in the market which is why we are seeing a huge surge in tiny "boutique" ad shops, particularly for viral and guerilla advertising. But that just means the money is being spread differently, ad spending has actually increased in many areas...few of them traditional.

      "I really don't care about the advertising industry; I'm not the sort to know or care what's in fashion, I just buy what I want (or need) and any advertisement aimed at me beyond the introduction of new products is doomed to failure."

      I honestly don't believe this for a second, despite how anti-advertising you claim to be. As a fellow geek who thoroughly researches every purchase I make, ads be damned, I have to say there have been plenty of times when an amazing ad has swayed my purchasing decision and when I immediately realize it I get very angry at myself since I do this for a living and know better than most how they affect people. However I am not ignorant enough to think that all advertising is bad...otherwise how do you find out about sales and other ways you can save money? Yeah, most "special offers" are utter crap and make m

      --
      Buy Steampunk Clothing Online!
    4. Re:So who actually thinks this is a good idea? by Anonymous Coward · · Score: 0

      I think this is a GREAT idea. If the gaming company is making all that money from in-game advertising, as far as I am concerned the game is already paid for, so I will go download the game and play guilt free. I'm still paying with the attention I must pay to the intrusive ads, but at least I'm not going to fork out $60.

  5. More realistic by cl191 · · Score: 4, Informative

    I actually like seeing real life ads in games, games like SWAT4 with real movie posters or real coke machine makes it much more realistic IMO. But then of course it will get annoying if it's too intrusive, like flyers/posters everywhere on the wall and floor. On another note, I found it interesting that in SWAT4, most of the computers in the game are destructible, while the one with ads on the screen are indestructible.

    1. Re:More realistic by Anonymous Coward · · Score: 0

      Yes, because realistic = better. ... wait.

    2. Re:More realistic by Anonymous Coward · · Score: 0

      Of course it will be intrusive. How are they supposed to know which ads to show without sending a list of every website you visit and every media file on your computer to the company to help "target" the ads (and sell that information to anyone who is willing to pay for it).

    3. Re:More realistic by Ruprecht+the+Monkeyb · · Score: 1

      Which, if you think about it, is stupid. You'd be far more likely to remember what was on the screen if you took the time to aim and shoot at it. Otherwise, you just learn to tune out the 'red glow' monitors cause they don't show anything important and you can't blow em up.

    4. Re:More realistic by Anonymous+Monkey · · Score: 1

      Fake adds in games are cool as well. Did you ever play Sim Copter? The radio adds in that game still make me crack up.

      --
      We are the Borg...
    5. Re:More realistic by Ahnteis · · Score: 1

      Probably so they don't get blow up in the crossfire BEFORE you get a chance to see the ads.

  6. if game makers make money on advertising... by masterpenguin · · Score: 2, Interesting

    Whats the chance that they'll make more money on the advertising and just give the game away. I think this would be a great method of product placement. Worked great when the US Armed Services gave away 'america's army'. They could also update the ads either on a regular basis over the internet, or through patchs.

    Heck, why not include some form of google ad sence that ties in with your brousing and PRESTO your new faverate video game not only sells you products but products specificly marketed to you.

    Although I wouldn't play a game like this for free, people will soon be PAYING to be sold advertisements. Like when you sit and watch the newest pop film in the theater.

    1. Re:if game makers make money on advertising... by zoward · · Score: 1
      Whats the chance that they'll make more money on the advertising and just give the game away.

      ...about the same chance that cable companies would have made cable free once they accepted advertising on almost all of their channels. Why replace one revenue stream with another if you can keep both?

      --
      "Can't you see that everyone is buying station wagons?"
    2. Re:if game makers make money on advertising... by Anonymous Coward · · Score: 0

      It's not paying to see ads, but paying less for the actual product because of few silly ads. Which I think is good. I'd gladly take free games and with no problem ignore the product logos behind menus and during loading pauses etc.

    3. Re:if game makers make money on advertising... by grimwell · · Score: 1

      Whats the chance that they'll make more money on the advertising and just give the game away.

      See Anarchy Online. You can play their "base" game for free, in exchange you get in-game ads. If you want to play the expansion packs, you need pay the monthly fee.

      The in-game ads aren't all bad. The ones in town aren't too distracting and I've even stopped to watch the full motion(ie. video) ones. The annoying ads are the posters in the missions(dungeons). But for free it ain't all bad.

      --
      If the govt becomes a lawbreaker, it breeds contempt for law, it invites man to become his own law, it invites anarchy
    4. Re:if game makers make money on advertising... by ergo98 · · Score: 1

      ...about the same chance that cable companies would have made cable free once they accepted advertising on almost all of their channels. Why replace one revenue stream with another if you can keep both?

      The cable company neither creates the content, or embeds the advertisements. Both of those are by the source originator. Companies like ABC, NBC, CBS, and so on that exist 100% by advertiser support. They existed actually before cable companies.

      Cable companies thus had to find a different revenue stream. If they were allowed to overlay their own ads, I'm sure you would see free cable.

    5. Re:if game makers make money on advertising... by ergo98 · · Score: 1

      Whats the chance that they'll make more money on the advertising and just give the game away?

      Most high circulation magazines, and even newspapers, actually make very little money by their subscription fees, and instead rely largely upon advertisers as their business model.

      Why do they charge a subscription fee, then? They charge because it gives advertisers faith that the paying customer base actually wants, and probably utilizes, the magazine, and probably assigns it some value. Thus the advertisers pay more to be in a pay product, even if the circulation would be much higher if they gave it away for free.

    6. Re:if game makers make money on advertising... by Anonymous Coward · · Score: 0

      AO will probably turn out to be the exception rather than the rule.

    7. Re:if game makers make money on advertising... by pinkfloyd89 · · Score: 1

      So comcast isn't overlaying all those comcast adds and local adds on my national cable?

    8. Re:if game makers make money on advertising... by ergo98 · · Score: 1

      So comcast isn't overlaying all those comcast adds and local adds on my national cable?

      No, they aren't. Your local NBC/ABC/CBS affiliate is, or the source network is when they provide specific feeds for specific areas. Comcast pays NBC/CBS/ABC/etc. just like everyone else to get their ads on their.

    9. Re:if game makers make money on advertising... by Tetsujin28 · · Score: 1
      So comcast isn't overlaying all those comcast adds and local adds on my national cable?

      No, they aren't.

      Yes they are. For many (most?) national cable channels, part of the deal under which the cable company carries the channel is that the cable company gets a certain number of minutes per hour in which to run their own ads. This is why you might see a commercial for your local, just-down-the-block used car dealer on a national channel like Food Network.

      --
      - - - -
      The real Tetsujin 28 is a giant robot.
    10. Re:if game makers make money on advertising... by nahdude812 · · Score: 1

      Such as National Geographic?

      I got into this discussion once before with someone else here on Slashdot. I subscribe excusively to advertisement-free publications. Pennsylvania Magazine, Birds & Blooms, Backyard Living, to name a few. These publications are small ones, hence their production overhead is more significant to their bottom line, yet they can survive free of advertising. The National Geographic model (which typically includes only one car advertisment on the inside cover or something; I don't actually subscribe to this one) says to me that magazines are sustainable sans-advertising, or at least with much less advertising, and that it's pure greed that puts most advertisements in these periodicals.

      National Geographic has much higher production costs than most fluff magazines (such as Reader's Digest), since they do things like foot multiple-year expeditions to the rain forest, and generally produce a much higher quality, and longer (thicker) digest, but yet still turn a profit with only one ad.

  7. So what about non-modern games? by AndyTheSayer · · Score: 5, Insightful

    It'd be interesting to see them try to sneak an ad for Coca-Cola or whatever into something like Oblivion. ;) I don't see how they could advertise many products in a fantasy setting. It'd ruin the immersion. Unless they have Ye Olde Coca-Cola ale for sale in a tavern or something... But even then, someone would doubtless quickly mod the game to replace it with something non fourth-wall breaking.

    1. Re:So what about non-modern games? by Anonymous Coward · · Score: 1, Insightful

      If ads do become a significant source of revenue for publishers, they're going to start mandating it in all games they publish. Games like Oblivion will either be ruined by the advertising, or they will simply never be made, and the resources saved will go towards producing another twenty or so thinly disguised ads for Coke.

      You can pretty much say goodbye to immersion, any games set in a non-modern setting, or both.

    2. Re:So what about non-modern games? by Cyrgo · · Score: 1

      Coca-Cola in Oblivion? Mmmm... what if an alchemist sends you on a herb gathering quest and when he finally mixes the potion he asks you how you would call it?... guess what could be the only dialog choice?

    3. Re:So what about non-modern games? by tabby · · Score: 1

      Isn't this what happened to westerns on TV? Couldn't do product placement... so no dollars, no funding, no shows.

      --
      I've experiments to run, there is research to be done on the people who are still alive.
    4. Re:So what about non-modern games? by Salgak1 · · Score: 1
      Coming to EverQuest 3:

      ISpellbook: Cast Differently

      (with Jobs in a robe and pointy hat, and a little winged demon on his shoulder that looks REMARKABLY like Bill Gates. . . )

  8. Insiders view by korpique · · Score: 2, Interesting

    It's really nice to be able to support a user base of millions very few of whom ever choose to put any money into the game. At least in our platform, however, the advertisers have to be hand-picked to fit our "world", and the advertisement method and material have to be tailored by hand. It's hard to see what the role of a mediator would be in this kind of setting. Maybe consultant, but probably only before our platform is chosen as the channel.

    --
    I was the real korpiq until I woke up clowned.
  9. Great just what we need by masterpenguin · · Score: 1

    Gun companies advertising in FPS games, like the video game industry needs more "links" to violence and violent behavior.

  10. As long as its done right by Brianech · · Score: 1

    If it brings down the price of games (doubtful) it would be nice.
    But really I dont mind current advertising in games at all, like mentioned by others it adds a little realism to a game. Real ads on the boards in hockey games doesn't affect the gameplay, and the only times your really going to notice them are during cut scenes. Billboards on racing games also do little to detract from gameplay. I think the type of advertising that should be a non-issue is product placement in limited QUANTITY (no office I know of has 100 Coke/Pepsi machines, 1 in each hallway).
    While more intrusive, as long as game prices are affected I wouldn't mind load screen advertising. As long as there aren't minimum length load times for people with faster computers.
    What I don't think I could stand for are ads at the start of a game. For example to enter the game there are a couple 30second commercials that are not skipable. Unless the game was free or dirt cheap it would be enough to turn me off. The reason I rarely go to theatres now is because there is almost 15minutes of ads at the start for something I pay a pretty hefty price for already. I enjoy games that you can play for a few mins between classes, not games that take 10minutes to setup/load/watch cutscenes and play.

    1. Re:As long as its done right by Digital+Vomit · · Score: 1
      If it brings down the price of games (doubtful) it would be nice.

      If the entire history of the Western capitalistic market is any indicator, BWAHAHAHAHAHAAAA!!

      --
      Modern copyright is theft of culture from everyone and it retards the progress of the useful arts and sciences.
  11. Deja vu? by Aceticon · · Score: 1

    Hasn't In-Game Advertising been "Poised for Explosive Growth" for the last couple of years?

    For sure there was an article here on /. a couple of months ago about how in-game advertising was going to grow (sorry, i'm too lazy to look up the reference). I'm still waiting to hear the bang.

    Been seing in-game avertising for years now (just about any F1 game of the last 5 years has it) and yet it in-game advertising revenue remains a very (very, very) small part of the total advertising revenue.

    With the notable exception of games whose setting is in the present, real world, most other games do not have any visible advertising on them. The few that have tried (example, Planetside) saw a backslash from consumers as a result.

    In fact, it's very hard to work real adverts into any games set in a fantasy/futuristic environment without them being "in your face" to the level of insult ("Sword of the Mighty *-Cola").

    Maybe the predicted 5x growth is just going from miniscule to punny.

    In other news, in a few minutes there is going to be an explosive growth (100x times) on the amount of cofee in my used cofee cup - all the way from the 2 drops left over from the last time to a full cup.

    [ time to go make it so ]

  12. Wait and see by caffeination · · Score: 4, Insightful
    We're all talking about it as if it'll definitely remain in the same form as it's in now: ads merged into the environment in the form of textures.

    I think "explosive growth" means logos and adverts during loading times and the like. If there's one thing we can count on, it's corporate greed.

    1. Re:Wait and see by cluke · · Score: 1

      I can think of even worse than that.

      Unskippable advert start scenes - at the start of every level. Or hell, why not mid-level?
      Constant overlaid onscreen ad graphics (a la TV station logos)
      Product placement in cut scenes (already happening, see Splinter Cell:PT in which the hero practically fellates his Sony Ericsson cell phone)
      Exclusive unlockable content, only available by buying a certain product and keying in personal activiation codes (bet this had been done already too)

      The fact is, advertising doesn't work so well anymore, people have got too used to ignoring them. The industry's response is to make them as intrusive as possible.

  13. No kidding. by PhrostyMcByte · · Score: 3, Insightful

    I hope this "explosive growth" will be tasteful.

    I don't mind seeing a Burger King sign in a racing game if it's in a place you'd usually see them like on a highway.
    I don't want to come across a bard in the next Neverwinter Nights telling me how he got his iPod accessories at his local Best Buy.

  14. so? by Anonymous Coward · · Score: 0

    who cares? as long as the ads dont interrupt the games.

  15. So.... by jasen666 · · Score: 3, Funny

    Since the game will now generate ad revunue, that means they can sell them a little cheaper right?

    *cue game company execs staring idly at the ceiling tiles

    er, pay the hardworking programmers and developers a bit more?

    *more tile counting

    Oh, line executive coffers and retirment plans?

    *CEO and CFO highfive

    1. Re:So.... by Bungleman · · Score: 1

      Your comment is funny, but it raises a point... what do we get out of this? Of course the answer is nothing...

      So we put up with these ads, whether they're built into the game using textures of put up on a splash screen when we login, but we don't get any benefit from them. The games will NEVER go down in price. Sure some mmorpg companies (like Funcom with Anarchy Online) have provided their games free of monthly fees if you have the ads, but I don't think we'll ever see a mainstream game disk go for $40 because of advertiser funding.

      It's like my satellite ISP that made me buy my own satellite equipment then sign a one year contract with them. They get to have their cake and eat it too...

    2. Re:So.... by brkello · · Score: 1

      You are modded funny...but seriously, it should be insightful with how spot on this is. I mean...how about movie theatres? Now when I go there I have to watch commercial after commercial if I show up early. Have ticket prices decreased? Nope, they have gone up. Really makes me not want to go see a movie anymore.

      --
      Support a great indie game: http://www.abaddon360.com
  16. What ads? by RoboRay · · Score: 1

    I will continue to insert dynamic ad-server domains into my HOSTS file as rapidly as they establish them. Seeing the blank billboards in games like PlanetSide is actually beginning to amuse me.

  17. Ads in games by ofcourseyouare · · Score: 2, Interesting

    The advertising industry in a state of panicked paralysis. Lots of smart guys who've had a great ride for 30 years are terrified that it's going to end. Product placement, whether on TV, in films or in ads, is one solution they cling to, like Leo di Caprio clutching that bit of wood at the end of Titanic. Didn't do him much good, and it won't do them much good either...

    Key issues include:
    * does the user pay for the content? If not, as on TV, and users perceive that they are getting good content for nothing because it;s paid for by ads, then users will put up with it, as on TV; they may skip the ads, but they don't necessarily complain about it too much.
    * is the user getting the content for less because of the ad? Again, if so, then users will put up with it - and a lot of the slashdot posts reflect this.
    * does the ad make the content more real? e.g. ads on the side of football pitches; don't think many people would object.


    * BUT - if the user IS paying for the contect, and its price is not coming down because of the the ad, and it's not adding to the realism of the content - then you have a situation where users will start increasingly to rebel at being forced to watch ads, and cease buying products because of them.
    * another poster wisely commented that corproate greed will win - but not necessarily in the ad's favour. As I recall, someone from EA (I think in an IV in Edge magazine) pointed out that their revenue from ads is under 2% of their total revenue. They are not going to risk failing to sell Halo X for $XXX because they want to squeeze in a couple of ads which will generate a tiny amount of extra revenue.
    * Stories about product placement's huge future are generally fuelled by people in the ad industry who need it, to save their industry. That does not mean it's going to happen.

  18. This could be a good thing by szembek · · Score: 1

    I for one would support this, if it meant not having to pay a monthly fee to play that $50 game I just bought online. I've got enough bills, I don't need one for playing a game too.

    --
    nothing
  19. No. by keyne9 · · Score: 1

    I repeat, to advertisers: Stay the fuck out of my game.

  20. No explosion, just creeping. by Rob+T+Firefly · · Score: 1
    In-game ads have been slowly creeping up on us for ages. There's no explosion, just a general slow creeping toward ad saturation. We've all seen it happen before on cable TV and satellite radio, and very quickly on the WWW.

    I remember one or another of the old "Teenage Mutant Ninja Turtles" games for NES, where every so often you'd walk past a Pizza Hut ad. That wasn't so annoying, pizza was part of their schtick, whatever. I think they even gave you a coupon for a free pizza or something with the game. Fast-forward a decade or so, and I'm playing one of my favorite PS1 games, "Parasite Eve II," which would be my all-time favorite except for the fact that the ultimate life-replenishing power-up in that game was a can of Coca-Cola. It really takes away from the whole sci-fi survival horror thing when you're forced to be on a constant lookout for a damn Coke machine, or when vanquished monsters drop cans of Coke for you to drink.

    There are more than enough situations in games where ads can be non-intrusive, and even add to the realism. Racecars, ballparks, and city settings wouldn't look as authentic if not plastered with the same insane amount of ads as their real-life counterparts. If you're in a virtual Times Square, New York, as with the genuine article it would actually look lame without all the billboards and neon. Of course, I reserve the right to ignore those virtual ads just as much as I do the real ones.

    One more thing, from TFA: "Although the in-game advertising market is still relatively untapped, its promising business model will lead to swift market development," commented Yankee Group senior analyst Michael Goodman. "Effectively competing in the interactive gaming market for the video game and advertising communities requires careful attention to the intricacies of the industry."

    It's not video games that make me violent. It's people who talk like this that make me violent.

    1. Re:No explosion, just creeping. by Opportunist · · Score: 1

      The question this rises, though, is whether the game world needs more ads or the real world needs fewer.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:No explosion, just creeping. by ufoot · · Score: 0

      > In-game ads have been slowly creeping up on us for ages.
      Yes, I totally agree. I'd even add that games are themselves marketting objects. I mean, whenever you buy a "Harry Potter" game, who's making advertisement? Is the brand "Harry Potter" used to sell the game, or is the game a way to help selling the book? Both in fact.
      > Video Games Are the Next Frontier for Advertisers
      Great. So video games are the next victims of those "I mess up with everything I touch" specialists. They'll cash in for some years then every one will be fed up with it, add will have no more effects than a light cigarette on a hard-drugs addict, and well, everything will be rotten as hell, including the advertising business itself (if it's not done yet...).
      Note that it's a general tendency to put advertisements everywhere trying to divert citizens so that they don't expect it to be advertisements.

    3. Re:No explosion, just creeping. by Rob+T+Firefly · · Score: 1
      That is an excellent point, and one sure to make people on either side of the spectrum cringe. I'd mod you up, but I have no power here.

      I'd be happiest in a word without ads, real or virtual, but I'm dubious that it'll be allowed to happen. I remember my dad, an early adopter of cable TV, being majorly pissed off decades ago when ads started to infiltrate the service he was already paying for. Nowadays in the age of QVC and all-night infomercials, people don't even notice that they're paying premiums for the privilege of watching those ads. I can only imagine how the modern Internet looks to the old-timers from the 1970s who were enjoying email and Usenet without spam or ads of any kind, but the average Joe doesn't remember things being any different.

  21. In other news... by Anonymous Coward · · Score: 0

    Games industry poised for explosive collapse as advertising takes off...

  22. Wait and see-I'll take adverts for the block. by Anonymous Coward · · Score: 0

    "I think "explosive growth" means logos and adverts during loading times and the like. If there's one thing we can count on, it's corporate greed."

    As opposed to? Seeing as to how "we" block/skip everything. It looks like they don't have much choice. You may see that as greed? I see it as simply "no choice". Now you may see advertising as evil, and the world would be a better place without it. However I'd recommend you think that stance through to it's logical conclusion before throwing the baby away. You'd have as much to lose as they would.

    1. Re:Wait and see-I'll take adverts for the block. by Anonymous Coward · · Score: 0

      Feel free to repost this in a way that makes some sense.

  23. Advertising = Bad Thing by MaWeiTao · · Score: 3, Insightful

    These companies want advertising in games to make extra money above and beyond what they make now. There's no way in hell they're going to lower prices because they've crammed a game full of ads. If they did that they might as well not have advertising in the game at all.

    The last time I checked cable and satellite television is getting more expensive despite more advertising than ever before. The same goes for movies, which have absurd amounts of product placement despite ever increasing ticket cost.

    These companies don't care about preserving immersion, they care about making a few extra bucks. GTA Vice City took place in the 80s, San Andreas took place in the 90s. If they put in real ads rest assured they wouldn't be advertising from each game's respective time period. We'd see big flaming ads for Dell XPS computers, Subway sandwiches, bad ringtones, some new SUV and lord knows what else. And then the best part is when they throw these ads in a player's face and force them to watch it. We'll have a game with completely destructable environments except for advertisements. And entire town will be obliterated but all the billboards will be pristine.

    And for every one creative, well-designed ad there are 10,000 awful ones. This entire venture is about making money. These jerks aren't going to spend on anything if they don't need to which means we're going to see low quality garbage everywhere. Look for high quality advertising in the style of lowermybill.com.

    I never liked advertising and I never will.

    1. Re:Advertising = Bad Thing by cliffski · · Score: 1

      I agree 100%. Ive worked in 'triple A' game dev putting billboards in a game where they did not belong. Ive implemented at gunpoint that unskippable startup screen with the 'runs best on intel' bullshit that the company were paid to include. I hate it more than anyone.
      If you really want to make a difference with this, you need to vote with your wallet and just not buy a game thats packed with ads. It annoys me that reviewers dont mention the number of unskippable ads or product placements in games. I wouldnt be surprised if 'review copies' didnt have any in though.
      Its another good reason to buy indie games though, Im so annoyed by ads I place the pledge that my games are ad-free right on the top of my homepage.

      --
      DRM-free indie games for the PC and Mac: Positech Games
  24. Deja Vu: Online Gaming by Anonymous Coward · · Score: 0

    Don't forget that through out the 90s "Analysts" were predicting an explosive growth in online gaming and gaming revinues; their reasoning was based off of the fact that in a short time frame (2 or 3 years) the number of online games had doubled and this meant that (at this rate) every game would be online by 2005. The truth is that "Analysts" don't really know what they are talking about most of the time.

    The simple fact is that in game advertizing is a symptom of what is wrong with the gaming industry today; game budgets (on average) are hitting points where they require the game to be highly successful in order for the company to break even and make another game; when you're paying $20 Million - $40 Million to develop a game you need to sell 2 Million - 4 Million copies to break even (before you consider the costs associated with marketing your game).

    In game advertizing, episodal content, and micro payments provide the end user (the gamer) with almost nothing; well they provide you with a $2 quest that only lasts 10 minutes, a $2 horse and (potentially) annoying product placement or un-necessary cut scenes.

    Don't get me wrong, I have said in the past that I'd be willing to watch a 30 second to 1 minute comercial every time I logged into a MMORPG to get the connection for free; or in an offline game if the game was free. I am just completely unwilling to be bombarded with advertizing (or Nickeled and dimed) in a product that I spent $60 for because someone thought that the HD-era was a good thing.

  25. Fantasy games by Lord_Dweomer · · Score: 2, Insightful
    While ads certainly have their place in games like GTA, The Matrix Online, even CoH...I have to say I am DYING to see what attempts will be made to breach the ad market with fantasy games. Because honestly there is no clean, natural and non-disruptive way to do so without completely borking the setting.

    Of course what that means is we will start seeing less ads in the actual game world, and more ads in the interface, similar to the whole "ordering pizza through the command line" deal. Or possibly showing spots during zone loads. Of course then you have angry players who would rightly be suspicious that their uberfast connection and computer should load the zone quicker and that they are delaying the zone loading process just to show ads.

    And lets face it...since the most popular (for the moment) game online is WoW...you KNOW someone will attempt it. Whether Blizzard will bite or not is another question. Would you object to seeing a food vendor selling chicken suspiciously labeled "K'ntuckee Fried Chicken"? I actually think that is one option advertisers have...parodying their brands. People can easily make the connection and see the joke, it would definitely be fitting in the setting...AND people would still make the same connection to the brand, and perhaps even appreciate that they didn't try to make a hugely flashing ad that completely broke the theme of the game world.

    --
    Buy Steampunk Clothing Online!
    1. Re:Fantasy games by SatanicPuppy · · Score: 1

      Heh. They already do stuff like that, as a gag. WoW is packed with pop culture references, though I doubt they get money for it.

      --
      ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  26. You have found... by TylerChambers · · Score: 2, Funny

    the Mountain Dew Broadsword of Uleharm. Bonus +5 to stamina, 10% chance to cast Berzerker Rage on self during melee combat. Do the Dew!

  27. In Game Ads with Theater Ads by mackil · · Score: 1

    There is little difference between in game ads and the endless ads they play before a movie at your local theater. You have already paid for the privilege of seeing the movie (or playing the game), but now you have to endure 20 minutes of ads. Have the prices of movie tickets gone down? No they have only gone up. The same thing will happen with game prices.

    And can you think of anyone who likes the ads before a movie? Ever wonder at the decreasing revenue for the film studios? I would say the opinions of the people are clear... for games and movies.

  28. Gamers don't want ads by grumpygrodyguy · · Score: 1

    In-Game Advertising Poised for Explosive Growth

    And gamers are just as poised to 'explode' away from any game with ads in it.

    --
    The government has a defect: it's potentially democratic. Corporations have no defect: they're pure tyrannies. -Chomsky
  29. Expect the anti-measures by Frozen+Void · · Score: 1

    As all ads this will be dealt.
    Perhaps it will require a dedicated crack,it usually works this way.
    In degree of complexity:
    1.hosts IPs can be blocked separately.
    2.textures/objects/generator scripts can be hacked to draw blank/disabled.
    3.If all this is encrypted it will be decompiled.
    4.server side authentication will be logged and reverse engineered.
    5.If all else fails the client will be reverse enginered.(Unlikely and messy solution,but is very effective)
    Its depends just matter if they game popular enough and ads are annoying enough.

  30. Sometimes Advertising Works Well in Games!!! by Swimmin'+Pants · · Score: 2

    Pikmin 2 is full of in-game advertising, and it actually kind of adds to the game's narrative. Modern-day Earth products are lying around everywhere, implying that the game takes place on a post-apocalyptic Earth, after the entire human race got so fed up with ubiquitous advertisements that it killed itself just to get away from it all.

  31. Yes - Tournaments by Anonymous Coward · · Score: 0
    While I understand the sentiment from individuals playing single player games or casual multiplayer games (read: non-competitive) there is a need for this to aid tournaments in securing sponsorship.

    If e-sports is to be taken seriously in the future (and the future is bigger then most other syndicated sports imo) this is a necessary evolution. More game developers should take this seriously.