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
Conference Day at E3 2011

E3 Day 2 images

Conference Day at E3 2014

Showfloor images from E3 2014

Online
There are currently 0 members and 115 guests on the website right now.
Who's On?
Activity in the past 10 minutes:
  • 115 guests
Best News this Month
Disney Infinity: Toy Box Starter Pack 2.0 launches
Disney-themed starter pack and Disney Originals figures now available

Posted 18 days ago
Konami reduces Metal Gear Solid V: Ground Zeroes retail p...
New price of $19.99 for boxed console versions
23 days ago
Pro Evolution Soccer 2015 soundtrack detailed
Popular and upcoming artists provide music for the annual football game
17 days ago
Ubisoft announces system requirements for Assassin’s Cr...
High-end PCs needed to run the next-gen Assassin’s Creed game
29 days ago
Games with Gold for November 2014
Hack-and-slash platformer plus fully destructible open world
22 days ago
Latest Comments
Hero of Many Review
Nov 21, 2014 by Evan Witt
Don't get me wrong: it's not the mechanic or the...
Hero of Many Review
Nov 21, 2014 by JamesJay
I think you've dived too deep in this one (yes that's a...
Rocksmith 2014 Edition out now for new consoles
Nov 16, 2014 by JamesJay
That's strange, are you sure? Ubisoft themselves said it...
Rocksmith 2014 Edition out now for new consoles
Nov 16, 2014 by David Jenkins
DLC purchased for XBOX 360 is NOT compatible with XBOX...
Just Cause 3 announced
Nov 16, 2014 by Tim Reid
Burnout meets Just Cause 2, I am so up for this
New Game Network NGN Facebook NGN Twitter NGN Youtube NGN RSS