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."

Comments

So who actually thinks this is a good idea?

[JWallyR]

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.

Re:So who actually thinks this is a good idea?

[MobileTatsu-NJG]

" 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.

So what about non-modern games?

[AndyTheSayer]

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.

Re:So what about non-modern games?

[Anonymous Coward]

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.

Wait and see

[caffeination]

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.

No kidding.

[PhrostyMcByte]

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.

Advertising = Bad Thing

[MaWeiTao]

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.

Fantasy games

[Lord_Dweomer]

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.