Expect to see more deodorant ads on virtual billboards and bus-stops in the years to come.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.