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In-Game Advertising
Summary
All you need to know about In-Game Advertising on just one page, covering definitions, impact on advertising and the current and future market.
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What Is It?
In-game advertising (IGA) refers to the use of computer and video games as a medium in which to deliver advertising.
In-game ads can be simple text links or banners, which can be placed on loading pages (which game players are presented with for a few minutes as they download the game), or as part of the playing area within the game itself. It is also possible to place video ads that play in the background of the game and to use product placement: to integrate
the product in the context of the game.
Current Market
The recent introduction of dynamic (online enabled) in-game advertising (DIGA) has resulted in a flexible, updateable and creative alternative for marketers looking to access multiple niche audiences. Marketers can now serve their ads into a game in real time and select the type of game and placement they require. They can even specify the number of impressions that should be served.
DIGA is thought to be more accountable and measurable than any other medium in terms of the actual time spent with advertising, and can be planned and bought in the same way as any other media.
There has been an industry shift away from advergames towards in-game advertising and sponsorships, or customised
games, like versions of Ciao Bella or Diner Dash that are customised to a particular marketer’s brand.
US in-game advertising spending reached $295 million in 2007, while the number of unique visitors to online gaming sites has reached almost 217 million worldwide – a year-on-year growth of 17% – according to comScore research.
Impact Of Advertising
Integrating dynamic advertisements into video game environments provides brands with a measured lift in overall
consumer awareness and opinion of the products they are exposed to during game play, according to Nielsen BASES and Nielsen Games on behalf of IGA Worldwide. Consumers react positively to in-game ads: 82% felt games were just as enjoyable with ads as without. In addition, there was an average 61% increase in consumers’ favourable opinions of products advertised in-game post-play.
Microsoft’s Massive claims in-game ads have a positive impact on metrics like brand familiarity, ad recall and ad rating – even increasing purchase consideration by an average of 41%. A study from Double Fusion and Interpret showed that 75% of gamers engage with at least one ad per minute across most game types.
Going Forward
Buoyed by a vibrant video game industry that is enjoying unprecedented growth, eMarketer projects that US in-game advertising spending will rise to $650 million by 2012, up 120% on 2007. In Web-based games adspend alone will grow by a massive 133%, while advergaming, console and PC-based games will also contribute to growth.
By 2011, Yankee Group says that worldwide in-game advertising expenditures (fixed product placement/static ads and dynamic ads) will grow to $971.3 million.
Mobile handsets are coming into focus as a promising delivery medium for downloadable and ad-supported games. Juniper Research expects worldwide mobile gaming revenues to reach $16 billion by 2012. Gartner predicts a worldwide forecast of $9.6 billion in mobile gaming revenues for 2011.
Mobile gaming is growing at a faster rate than the console and handheld markets, according to latest research from entertainment analyst firm U&S. Global revenues from mobile gaming are pegged at $3.6 billion this year, and this figure is expected to rise to $6.0 billion by 2011.
The rapid growth of Smartphone adoption in the US has provided a boost for mobile gaming; 34% of those downloading a game in November 2008 did so using a Smartphone. Over the past year, mobile gaming has expanded into a broadening demographic, with strongest growth among teens (who previously eschewed their mobile device in favour of handheld gaming devices), and those aged 35+.
In-game advertising (IGA) refers to the use of computer and video games as a medium in which to deliver advertising.
In-game ads can be simple text links or banners, which can be placed on loading pages (which game players are presented with for a few minutes as they download the game), or as part of the playing area within the game itself. It is also possible to place video ads that play in the background of the game and to use product placement: to integrate
the product in the context of the game.
Current Market
The recent introduction of dynamic (online enabled) in-game advertising (DIGA) has resulted in a flexible, updateable and creative alternative for marketers looking to access multiple niche audiences. Marketers can now serve their ads into a game in real time and select the type of game and placement they require. They can even specify the number of impressions that should be served.
DIGA is thought to be more accountable and measurable than any other medium in terms of the actual time spent with advertising, and can be planned and bought in the same way as any other media.
There has been an industry shift away from advergames towards in-game advertising and sponsorships, or customised
games, like versions of Ciao Bella or Diner Dash that are customised to a particular marketer’s brand.
US in-game advertising spending reached $295 million in 2007, while the number of unique visitors to online gaming sites has reached almost 217 million worldwide – a year-on-year growth of 17% – according to comScore research.
Impact Of Advertising
Integrating dynamic advertisements into video game environments provides brands with a measured lift in overall
consumer awareness and opinion of the products they are exposed to during game play, according to Nielsen BASES and Nielsen Games on behalf of IGA Worldwide. Consumers react positively to in-game ads: 82% felt games were just as enjoyable with ads as without. In addition, there was an average 61% increase in consumers’ favourable opinions of products advertised in-game post-play.
Microsoft’s Massive claims in-game ads have a positive impact on metrics like brand familiarity, ad recall and ad rating – even increasing purchase consideration by an average of 41%. A study from Double Fusion and Interpret showed that 75% of gamers engage with at least one ad per minute across most game types.
Going Forward
Buoyed by a vibrant video game industry that is enjoying unprecedented growth, eMarketer projects that US in-game advertising spending will rise to $650 million by 2012, up 120% on 2007. In Web-based games adspend alone will grow by a massive 133%, while advergaming, console and PC-based games will also contribute to growth.
By 2011, Yankee Group says that worldwide in-game advertising expenditures (fixed product placement/static ads and dynamic ads) will grow to $971.3 million.
Mobile handsets are coming into focus as a promising delivery medium for downloadable and ad-supported games. Juniper Research expects worldwide mobile gaming revenues to reach $16 billion by 2012. Gartner predicts a worldwide forecast of $9.6 billion in mobile gaming revenues for 2011.
Mobile gaming is growing at a faster rate than the console and handheld markets, according to latest research from entertainment analyst firm U&S. Global revenues from mobile gaming are pegged at $3.6 billion this year, and this figure is expected to rise to $6.0 billion by 2011.
The rapid growth of Smartphone adoption in the US has provided a boost for mobile gaming; 34% of those downloading a game in November 2008 did so using a Smartphone. Over the past year, mobile gaming has expanded into a broadening demographic, with strongest growth among teens (who previously eschewed their mobile device in favour of handheld gaming devices), and those aged 35+.