Post by: Bloodworth on October 18, 2004, 05:23:43 PM
Video Games Will Generate Nearly $260 Million in Advertising Revenue by 2008, Says Yankee Group; $92 Million Will Come from In-Game Advertisements and $168 Million from Advergaming
BOSTON--(BUSINESS WIRE)--Oct. 18, 2004--Marketers are looking to new advertising vehicles to reach fickle consumers. According to the Yankee group report, Marketers Look to Video Games to Drive Their Messages Home, one such platform--video games--represents significant potential. The video game industry is already a mass market comprising more than 108 million gamers 13 years and older in the United States who spent $7.4 billion on video games in 2003. By 2008, this market will grow to more than 126 million gamers 13 years or older, generating in excess of $8.3 billion in revenue.
"Surprisingly, given the size of this market, video games have largely been ignored as a platform for advertising," says Michael Goodman, Media & Entertainment Strategies senior analyst. "In 2003, marketers spent a paltry $79 million on in-game ads and advergaming. Even if we add in the $450 million to $550 million spent advertising on game-related web sites, this pales in comparison to $42.4 billion on broadcast TV advertising."
"That is about to change as advertisers realize video games are effective platforms for reaching consumers with their marketing messages. In this report, we examined video games as a marketing vehicle and how advertisers can take advantage of this opportunity," says Goodman.
While traditional advertising media is losing its effectiveness, new opportunities such as video games are presenting themselves to advertisers. With more than 108 million U.S. gamers 13 years and older, video games represent a significant opportunity to reach consumers. Further, gamers tend to be receptive toward advertising.
Post by: Mario on October 18, 2004, 05:37:22 PM
Post by: Cheat Freak on October 18, 2004, 06:07:32 PM
and that is if they make enough with the adds to bring down the cost
i would but more new games if they where 40 or less
Post by: Bill Aurion on October 18, 2004, 06:11:47 PM
Post by: Ian Sane on October 18, 2004, 07:26:36 PM
Still it's rather selfish for me to only think about what affects me directly. As a whole ads in games are a BAD idea. There's a reason I tolerate ads in TV: television is for the most part free. I pay for games so I don't want any damn commercials in them.
Plus once you start having advertisers paying you you have to start altering your game to meet their requirements. Corporate influence is always a restriction on creativity.
Post by: NinGurl69 *huggles on October 18, 2004, 07:33:56 PM
OMG NO!!!!!!!!!!!!!!!!!!!!!!!!!1
Post by: Caillan on October 18, 2004, 10:54:34 PM
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Surprisingly, given the size of this market, video games have largely been ignored as a platform for advertising
My theory: the stupider people are, the more they will put up with bullshit advertising. Books don't have advertising in them, because most people who read them aren't idiots. Movies, which place much less strain on the intellect will use advertising much more - few will going to leave the cinema because there' too much crap in the movie (the exception being maybe iRobot.) Until recently, contray to popular belief, videogames have generally been played by people who are pretty intelligent; but as the audience grows, stupuder and stupider people will continue to play, and hence become the arget audience. This can clearly be seen when you look at the explosion of idiots into the gaming community (see the CS folks, or most of the big forums.) The success NFSU, that actually bastardises its gameplay for the sake of its sponsors, shows even more how much gaming, and perhaps just as importantly its demographic, has changed since, say, the first Need for Speed.
I must confess that I've always hoped gaming would move closer to the paradigm of liturature than it would to movies. Unfortuantly, it looks like it's on path to become something worse than either of them: the comic strip. Comics are a perfectly reasonable and effective form of communication, but can be seen as an example of what can happen when such a limited range of genres and a percieved audience control too much of the content. Not that this is directly related to advertising or anything, I just needed a good old rant.
Post by: KDR_11k on October 18, 2004, 11:51:27 PM
As for ads in games, if that gets the price of the new highly anticipated game down to 30 I'll greet it if it doesn't get too bad but a full price game with advertising in it just screams "We're money hungry a####les that don't care a bit about you! Now CONSUME!!". I'm perfectly able to boycott crap like that though I fear many others aren't.
Post by: Tunnelvision456 on October 19, 2004, 12:16:19 AM
Post by: ruby_onix on October 19, 2004, 12:32:56 AM
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I don't want timeless gaming experiences to be cemented into one moment of time...
Hey, I liked watching Back to the Future somewhat recently and seeing the old-school "Pepsi Free" product placements.
I think ads in videogames can really work, if they're done right.
Post by: RABicle on October 19, 2004, 02:45:07 AM
Seriously I couldn't care, and if it means what would be subscription games can be free I'm all for it.
Post by: Infernal Monkey on October 19, 2004, 03:55:41 AM
We hit four buses and lept over a building to get there, I threw coins at him in excitement.
Post by: Spak-Spang on October 19, 2004, 04:32:56 AM
For instance:
Football or any sports games:
There are timeless companies that are always going to advertise on billboards around the stadium. Those companies should be represented. Why not approach the company for ad support within the game, or atleast permission to use their logos.
Racing Games:
Billboards are everywhere. Once again, if you are racing down a street in America you will come across billboards. The trick is to once again get timeless companies that always advertise on billboards.
Grand Theft Auto: You know in these games that take place in real cities or cities designed close to others, then billboards also make some sense when used modestly, and can help design mental place markers in the enviroment.
In the end, within certain games it works and makes sense. In other games, it is the worst sort of corporate invasion. However, I don't think we are going to be seeing ads pop in the truly artistic creations like Mario,Halo,Zelda,ICO, or others.
Post by: InfinitysEnd on October 19, 2004, 04:53:34 AM
Post by: KDR_11k on October 19, 2004, 06:49:24 AM
Some other things that might work would be assigning company names to different game objects. Suddently that starship isn't just a starship, it's the new Lockheed Martin Spaceblaster 22! Blast demons with a Smith & Wesson BFG9000 or go with your trusty Heckler & koch plasma cannon! Your implanted computer system was made by IBM with software provided by Sun. And you fly to work in the Volkswagen Hovercar... Imaginary products but real companies. Though I guess you wouldn't fiund a company to play the role of the Liandri Corp. in the Unreal series...
Post by: Ian Sane on October 19, 2004, 08:08:48 AM
Oh dear God no! That's the sort of abuse I was thinking of. I don't even like it at PGC. The only reason I still go here is I really like the site and the staff and it's free so I'll deal with those ads (though I intentionally ignore all internet ads except for non-intrusive banner ads; if it's in flash and covering up the text I ain't buying it).
I can totally see it happening though and I would the first one publicly boycotting it. Again though it probably would do no good. I already boycott EA and THAT doesn't do sh!t. I can also ads during loading screen or showing up when you pause.
We need some seperation between the mainstream and real gamers. As big as the industry is it's still too small to have enough alternatives like you'll find with music or books and to some extent movies.
Post by: couchmonkey on October 19, 2004, 10:21:14 AM
Post by: joshnickerson on October 19, 2004, 11:05:51 AM
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Originally posted by: Caillan
Unfortuantly, it looks like it's on path to become something worse than either of them: the comic strip.
As an aspiring cartoonist, I take offense to that.
Post by: BlackNMild2k1 on October 19, 2004, 02:27:12 PM
Post by: dafunkk12 on October 19, 2004, 06:48:35 PM
Quote::ahem:: Actually, Sonic wears Soaps brand shoes with the grind-plates. Yes, product placement, but a logical one since it was tied in with an actual gameplay mechanic.
Originally posted by: Tunnelvision456
I can see it now, Heart Pieces in LOZ replaced by Coke cans. The Next Mario RPG will have you retrieving the seven Wal-Mart smilies, Nike swooshes on Sonics shoes, Samus' ship will be a Volkswagen. *shivers*
Post by: Caillan on October 19, 2004, 09:10:09 PM
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As an aspiring cartoonist, I take offense to that.
I apoligise for muddling my language. What I meant to say is that comic strips are often unfairly represented in society as something for kids or something insignificant. Movies or books are considered a much "higher" form of art, whereas the comic strip, which has just as much potential as either of them is disregarded. I have helped plan a few comics myself, and I respect the medium greatly. This was the classic example from 10 years ago, but with the recent and massive growth of webcomics, I can see how it's sort of lost its relevance.
Post by: Renny on October 20, 2004, 10:01:12 AM
I play games to get away from this crap--and have fun, of course. That's why I barely watch TV or listen to commercial radio. I guess the definition of "gamer" has changed, if there ever was one.... I still respect the eternal desire for more revenue, but there are limits with ingame advertising that are already being crossed by EA. How much worse will it get next generation? And as much as I love Pikmin 2, I don't think I can take more than a couple of those in 5 years.
Post by: King Bowser Koopa on October 20, 2004, 10:19:18 PM
I guess that it does depend on the games and, more importantly, the type of commercial.
Say, for example, the game's options menu has a preview for another title coming soon or recently released. Luigi's Mansion had one such ad for Pikmin, and it was a nice little addition. You didn't have to watch it if you didn't want to, but if you were curious it was there for the taking.
Commercials that aren't intrusive will still get people interested. That kind of advertising isn't pushy and doesn't shove the item down your throat.
When games start featuring commercials for food products or clothing brands that pop up before the game starts running, can't be skipped and possibly even adds to the loading times, that is when people need to say no.
If the corporate jerks out there simply can't survive without forcing gamers to put up with their rubbish, then games should be released with extra discs containing the commercials, and maybe a demo or something to get people to put the disc into their machine.
That way there's noone forcing gamers to watch them. There might be a demo or a bonus feature if they run the disc and put up with all the commercials, or they could just throw it out, no harm done.
Post by: odifiend on October 21, 2004, 06:44:48 AM
Post by: cubiot on October 21, 2004, 08:06:36 AM
Bowser is replaced with boozer.
Mario then wisks her away via Sun jet vacations on a delta owned boeing 747
looks like it will work out fine
