Advergaming, using games to advertise or promote a product, is thought by large advertisers to perform much better than TV advertising, according to a new report from The Bridge.
The report says that large advertisers like automobile manufacturers believe that advergames perform better than TV advertising because game companies give advertisers extra control compared to TV placements and game companies treat the advertisers like private equity investors, not an invader of creative space.
Meanwhile, Nielsen Entertainment is predicting that ad spend on brand placement in games will grow from $75 million in 2005 to as much as $1 billion by 2010.
Nielsen Entertainment has also begun measuring the impact of in-game product placement, with The Bridge report pointing out that in the Activision game American Wasteland, Jeep knows that players were shown 3-D images of their vehicles an average of 23 times in 20 minutes.
In addition, 96% of those who recalled seeing the Jeep said that the vehicle fit in well with the game, 51% said that they would recommend Jeep to a friend, and 65% said that they would consider buying one.
The Bridge also notes that with the ability to quantify the video game audience for advertisers, game makers are looking to establish a system where advertisers buy ads in a cost-per-thousand formula similar to the way they buy TV spots.
| US Videogame Revenue |
| |
2000 |
2004 |
2008 |
Change* |
| Console |
$4.1B |
$5.89B |
$8.04B |
7% |
| PC Games |
$1.99B |
$1.25B |
$1.04B |
-3% |
| Online |
$57M |
662M |
$3.38B |
52% |
| Wireless |
0 |
$301M |
$2.84B |
82% |
| Total |
$6.2B |
$8.1B |
$15.3B |
15% |
| *Compounded average growth rate 2004-2008 |
|
|
|
|
Source: PricewaterhouseCoopers
Meanwhile, a recent report from DFC Intelligence said that the global video game and interactive industry could grow from about $29 billion in 2005 to as much as $44 billion in 2011 (see Video Game Market Could Reach $44 Billion By 2011).
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