RSS Feeds NGN on Facebook NGN on Twitter NGN on YouTube
Welcome, Guest. Login | Register | PW? ]
Header logo
Index » News » All

Report claims in-game advertising to increase rapidly

A growing number of companies said to be developing in-game advertisements

Posted on
With 72 percent of Americans now playing computer and video games, a growing number of companies are developing in-game advertisements and other advertising campaigns to reach this expanding audience, says ESA.

According to a new report from market research firm DFC Intelligence, advertisers spent more than $1 billion using video games to promote their products and services in North America last year, and DFC expects this amount to double by 2014. These totals include in-game advertising, which often consists of billboards or product placements within a game's storyline; around-game advertising, which involves banner and skyscraper ads around online games; and advergames, in which the entire game serves as an advertisement.

A wide variety of companies across a number of sectors use these tools as part of their marketing strategy. Automobile, film, and food and beverage companies in particular reach customers through games. Kia Motors, for example, developed a campaign to promote the launch of the Kia Soul by placing in-game and around-game advertisements on Microsoft's Xbox LIVE dashboard and in games such as Electronic Arts' NBA Live 09 and Skate 2. Film production companies may use these games to promote their films, such as Sony Pictures' release of a nine-week episodic online game to stir audience interest in "Salt" before it debuted in theatres in July 2010. Other companies, including Anheuser-Busch, Inc., Adidas and Gatorade, have also employed in-game advertisements.

The U.S. Air Force is even embracing this strategy. As the Austin American-Statesman recently reported, Austin-based agency GSD&M is currently working with the military branch to develop an advertising campaign surrounding Namco Bandai's upcoming Ace Combat: Assault Horizon title, which will involve sponsoring trailers on game websites and offering downloadable content within the game itself.

While the use of entertainment software as a marketing tool is growing, DFC analyst Michael Goodman notes that advertisers are still not using video games to their fullest potential. "Video games have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population," Goodman said. "Despite this, advertisers continue to underutilize video games as an advertising vehicle."

The report notes that around-game advertising is likely to see the greatest growth in spending in the future, due primarily to the increasing popularity of online game play.
Comments
blog comments powered by Disqus
Game Screens
Showfloor images from E3 2014

GDC Conference

Call of Duty: Ghosts - Multiplayer Reveal Event

Showfloor images from E3 2013

Online
There are currently 0 members and 69 guests on the website right now.
Who's On?
Activity in the past 10 minutes:
  • 69 guests
Best News this Month
Games with Gold for December 2014
Try a classic strategy game reboot, or hit the slopes

Posted 23 days ago
Data Pack 2 Update for PES 2015 released
New Teams, Faces, Stadiums and myClub advancements
3 days ago
Activision claims Advanced Warfare has highest grossing l...
Call of Duty franchise tops $10 billion in sales
28 days ago
Second DLC pack for Borderlands: The Pre-Sequel out this ...
The Ultimate Vault Hunter Upgrade Pack will be released December 16
14 days ago
New DLC adds Challenge Mode to Shadow of Mordor
Play as Lithariel and use a new Epic Rune with free DLC
29 days ago
Latest Comments
What ever happened to the 3D platformer?
Dec 15, 2014 by SortingHat
I actually prefer the Sega VS Nintendo war as there was...
Advanced Warfare and Destiny top US sales for the...
Dec 13, 2014 by JamesJay
Sales aren't breaking records anymore, but I guess still...
Rocksmith 2014 Edition out now for new consoles
Dec 12, 2014 by David Jenkins
Well I have it for 360 and the reason I say is cuz my...
Uncharted 4: A Thief's End - Debut Gameplay Demo...
Dec 10, 2014 by reese
I really like the new animations and Ai seems very clever...
The Witcher 3: Wild Hunt release delayed
Dec 9, 2014 by Tim Reid
This is awesome, now the game comes out on the same day I...
New Game Network NGN Facebook NGN Twitter NGN Youtube NGN RSS