Why advertise in video games?

With so much buzz about branded entertainment and the extraordinary growth of the video gaming industry, it is important that marketers consider the great benefits that videogames can provide as an advertising channel.

There are more 100 million video gamers in the United States and this number continues to grow [1]. The recent release of next-generation gaming consoles and the fast adoption of high-speed internet among U.S. households have turned videogames into very attractive and promising advertising channels.

Advertising in videogames, also known as “in-game advertising”, is a relatively new field and although we might find several instances of in-game advertising in the past, the in-game advertising field really did not gained significant ground until the last couple of years.

There seems to be different attitudes about in-game advertising and its future. Its main proponents argue that in-game advertising provides a superior advertising medium that is both interactive and engaging. Some of these proponents have predict that in-game advertising will reach a global revenue of $2 Billion USD by the year 2010 [2]. Some of its skeptics argue that even though this medium offers great interactivity and engagement, its exposure is limited and it will never reach the level of exposure attained by mainstream advertising channels such as TV, Print and the Internet. One thing that everyone seems to agree is that in-game advertising is here to stay.

Source: [1] www.theesa.com, [2] www.adweek.com

In-Game Advertising Terminology

Here are some of terms used in the field of in-game advertising:

In-Game Advertising – advertising in a videogame by brand integration and/or product placement in a videogame. The integration would take place in the primary videogame screen area, where actual gameplay takes place.

Advergames - Advergames are free branded casual games. They are typically distributed online or via a CD-ROM. These casual games are fully sponsored videogames that incorporate advertisement to promote the sponsor's brand. The primary objective of an advergame is to serve as an advertising medium.

Around-Game Advertising - advertising in a videogame by brand integration and/or product placement inside the videogame environment, but outside of the primary game screen area. Typically, video games dedicate a portion of the game screen to statistics, scores, and other game elements that provide perfect placeholders for advertising.

Out-of-Game Advertising- advertising in external elements or assets of a videogame production, but not in the videogame environment itself. Example: Integrating ads in assets such as: instruction manual, retail box, and videogame promotional events.

Static In-Game Advertising – In this type of in-game advertisement strategy, the advertisement is hard-coded in the videogame by game developer before the videogame is released. The advertisement typically cannot be updated or changed.

Dynamic In-Game Advertising – In this type of in-game advertisement strategy, the ad is not integrated into the videogame until after the videogame is released. This is possible by game developer by integrating placeholders in the videogame such as: billboards, walls, and other elements that will display a future advertisement. After the videogame is released, the advertisement is “dynamically served” into the videogame by utilizing internet connectivity and an ad server.

In-Game Advertising Media Platform

There are three main media platforms to choose from when implementing an in-game advertising campaign. These media platforms are unrelated to hardware platforms, but rather the advertising vehicle where your advertisement will be taking place. Here are the three main in-game advertisement media platforms:

1) Traditional Video Games – this category includes any videogame, independently of its hardware platform, that was developed with the goal of being a stand alone videogame. These videogames are not developed with the mere goal of advertising. Advertising can complement this game and generate additional revenue for the videogame publisher, but advertisement is not its primary purpose.

2) Advergames – Advergames are typically casual games, which is to say that there gameplay is short and its complexity limited. An advergame is fully funded by its sponsoring brand or brands. This means that the company sponsoring the development of the game has major control over its design and ad placement. Advergames are stand alone games, but rather advertisement vehicles. They are generally free and its primary purpose is to promote and brand or a product.

3) Virtual Worlds – Virtual Worlds are slightly different than videogames. Virtual Worlds are virtual online communities where residents are primarily interested in collaborative and social activities instead of competitive ones. Virtual world users create avatars that often resemble their real-life appearance and characteristics. Virtual Worlds provide an additional platform for in-game advertising. The brand or product integration would take place in a similar fashion to traditional video games, however, marketers need to be aware of the unique aspects of a virtual world and its audience to effectively advertise in such a medium. When done correctly, advertising in virtual worlds should generate an emotional connection between advertised brand and the virtual world audience.

Creating a Successful In-Game Advertising Campaign

When pursuing an in-game advertising initiative, it is important to keep a few things in mind to ensure its success.

Video game first, Advertisement Second

When utilizing videogames as an advertising channel, it is important that the end product has all the qualities of a good videogame. The videogame should have the following characteristics:

• It must be fun to play

• It must be easy to learn

• It must have replay value

Audience Matching

An additional important aspect about integrating ads in a videogame is ensuring that the integrated advertisement or product matches the demographic of the videogame itself. There are certain types of videogames that appeal to different audience based on gender, age and other factors Marketers should ensure that the integrated ad targets the same demographic as the videogame itself.

Contextual

One of the critical areas of in-game advertising is that it needs to be contextual. Simply splashing an advertisement or a virtual billboard inside a video game does not constitute an effective in-game advertising strategy. The advertiser’s brand and product should not only match the target demographic of the videogame, but it should also be relevant within the video game environment and storyline.

About the Author

Roberto Alberdeston is the president of Game Diamond an in-game advertising agency. Game Diamond works with videogame publishers and advergame developers to promote products and brands through videogaming technologies. For more information about video game marketing and in-game advertising you can contact:

Roberto Alberdeston

Game Diamond

A in-game marketing agency

1210 Pinar Drive

Orlando, Fl 32825

www.gamediamond.com