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.
blog comments powered by Disqus
Game Screens
Conference Day at E3 2014

Showfloor images from E3 2011

Showfloor images from E3 2015

E3 Day 2 images

There is currently 1 member and 46 guests on the website right now.
Who's On?
Activity in the past 10 minutes:
Best News this Month
Lego Dimensions launches
A mash-up of numerous worlds in one game

Posted 10 days ago
Free PlayStation Plus games for October 2015
An otherworldly adventure and a punishing platformer
6 days ago
Rainbow Six Siege Closed Beta this week
The multiplayer testing event will kick off tomorrow
14 days ago
Driveclub: PlayStation Plus Edition being removed next week
Sony decides to remove the PS+ version from download
6 days ago
Skylanders SuperChargers now available
Vehicles appear in the franchise for the first time
17 days ago
Latest Comments
DiRT Rally adds Finland update
Oct 4, 2015 by Tim Reid
sounds like this is coming along nicely, good to see...
Sniper Elite franchise reaches 10 million copies...
Oct 2, 2015 by Clamp
I mean Sniper Ghost Warrior 3 not Sniper Elite v4:)
Sniper Elite franchise reaches 10 million copies...
Oct 2, 2015 by JamesJay
third part? you mean 4th
Sniper Elite franchise reaches 10 million copies...
Oct 1, 2015 by Clamp
Good series and a good result. 3 interesting games that...
Call of Duty: Black Ops 3 - Story Trailer Video
Oct 1, 2015 by Cylon
awesoem... Chris MEloni from Law and Order, Katee...
New Game Network NGN Facebook NGN Twitter NGN Youtube NGN RSS