Author Topic: In-Game Advertising Shows High Growth Potential  (Read 7642 times)

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Offline Bloodworth

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In-Game Advertising Shows High Growth Potential
« on: October 18, 2004, 05:23:43 PM »
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.

Daniel Bloodworth
Managing Editor
GameTrailers

Offline Mario

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RE: In-Game Advertising Shows High Growth Potential
« Reply #1 on: October 18, 2004, 05:37:22 PM »
What the hell? I don't want timeless gaming experiences to be cemented into one moment of time where Fifa 2006 may or may not be the hottest new release. Burnout 3 is bad enough...

Offline Cheat Freak

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RE: In-Game Advertising Shows High Growth Potential
« Reply #2 on: October 18, 2004, 06:07:32 PM »
there is only ONE way this could be good
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
someday...

Offline Bill Aurion

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RE: In-Game Advertising Shows High Growth Potential
« Reply #3 on: October 18, 2004, 06:11:47 PM »
No, ads in games isn't good at all...That's like saying you'd buy a priceless painting if someone tore off a piece, thus decreasing its value so you could buy it... ;___;
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Offline Ian Sane

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RE: In-Game Advertising Shows High Growth Potential
« Reply #4 on: October 18, 2004, 07:26:36 PM »
On one hand I see ads in gaming as a horrible idea just waited to be raped and abused by corporate assh0les who doen't give a sh!t about art or quality.  On the other hand do I really have to be worried?  The companies that would use this would be sell-outs like THQ or EA.  Publishers I actually buy games from like Nintendo or Capcom probably wouldn't have abusive ads.

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.

Offline NinGurl69 *huggles

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RE: In-Game Advertising Shows High Growth Potential
« Reply #5 on: October 18, 2004, 07:33:56 PM »
in-game pop-up ads

OMG NO!!!!!!!!!!!!!!!!!!!!!!!!!1
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Offline Caillan

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RE: In-Game Advertising Shows High Growth Potential
« Reply #6 on: October 18, 2004, 10:54:34 PM »
Quote

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.

Offline KDR_11k

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RE: In-Game Advertising Shows High Growth Potential
« Reply #7 on: October 18, 2004, 11:51:27 PM »
Books have a little advertising on the last few pages, but that's not intrusive.

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.

Offline Tunnelvision456

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RE:In-Game Advertising Shows High Growth Potential
« Reply #8 on: October 19, 2004, 12:16:19 AM »
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*

Offline ruby_onix

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RE: In-Game Advertising Shows High Growth Potential
« Reply #9 on: October 19, 2004, 12:32:56 AM »
Quote

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.
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Offline RABicle

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RE: In-Game Advertising Shows High Growth Potential
« Reply #10 on: October 19, 2004, 02:45:07 AM »
Here's your way to pay for online gaming Nintendo.
Seriously I couldn't care, and if it means what would be subscription games can be free I'm all for it.
Pietriots  - Post ironic gaming log.

Offline Infernal Monkey

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RE: In-Game Advertising Shows High Growth Potential
« Reply #11 on: October 19, 2004, 03:55:41 AM »
Crazy Taxi made advertising work. After I played Crazy Taxi, I pinned down the only taxi around that was being driven by a green haired punk and requested he crash me into KFC.

We hit four buses and lept over a building to get there, I threw coins at him in excitement.

Offline Spak-Spang

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RE:In-Game Advertising Shows High Growth Potential
« Reply #12 on: October 19, 2004, 04:32:56 AM »
The way I see it.  Advertising in games really depends on the experience you are having in the game.  Some games it adds to realism within the gaming enviroment.  

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.  

Offline InfinitysEnd

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RE:In-Game Advertising Shows High Growth Potential
« Reply #13 on: October 19, 2004, 04:53:34 AM »
I'm not going to say this is a good thing, but there are ways in which people can advertise in games and make it actualy apart of the gaming experience, so therefore it is accepted quicker.  Someone mentioned Crazy Taxi, which is a great example of this.  Didn't they also have Coke machines you could shoot in Duke Nukem 3D?  Another more recent example of this is Pikmin 2.  You pick up all sorts of "official" things with real company labels on them like Kiwi Shoe Polish, Dr. Pepper and RC Cola bottle caps (old school), Carmex Lip Balm, and many many others.  I'm sure Nintendo asked these companies if they could put them in the game, and I'm sure they all said yes or maybe even gave them some money to do so.  And it WORKS.  You see a real-life item in the game and you immediately relate to it, as though you are really in the real world in the game.  Now stuff like NFSU where there's a billboard every couple feet can get ridiculous, and when they start playing commercials before games start (like they do now before movies) that's when I'm going to pull the game out of the system and fling it across the room.  I think there's a place for ads in games, just as long as their either unobtrustive or are apart of the game experience.

Offline KDR_11k

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RE: In-Game Advertising Shows High Growth Potential
« Reply #14 on: October 19, 2004, 06:49:24 AM »
I think ad companies think what we don't want them to think. You know what happens once every 24 hours when you visit PGC? Now imagine your game doing that. The advertisers would love it, the gamers would cry for blood.

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...

Offline Ian Sane

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RE: In-Game Advertising Shows High Growth Potential
« Reply #15 on: October 19, 2004, 08:08:48 AM »
"I think ad companies think what we don't want them to think. You know what happens once every 24 hours when you visit PGC? Now imagine your game doing that. The advertisers would love it, the gamers would cry for blood."

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.

Offline couchmonkey

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RE:In-Game Advertising Shows High Growth Potential
« Reply #16 on: October 19, 2004, 10:21:14 AM »
Maybe we should start right now...a site campaigning for people to boycott games with excessive advertising in them.  Let people know which games have this type of content before they play them.  I'm so tempted...but I just gave up a bunch of old websites that I had no time for.
That's my opinion, not yours.
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Offline joshnickerson

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RE:In-Game Advertising Shows High Growth Potential
« Reply #17 on: October 19, 2004, 11:05:51 AM »
Quote

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.


Offline BlackNMild2k1

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RE:In-Game Advertising Shows High Growth Potential
« Reply #18 on: October 19, 2004, 02:27:12 PM »
I think as long as it doesn't detract from the gameplay and add a sense of realism(for those games requiring it), I don't see the harm.  According to lots of reports, games are becoming mor and more expensive to make and even harder to profit from, so if advertisers can find an appropiate place to advertise in a game and relieve developers of developing cost, I say go for it.

Offline dafunkk12

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RE:In-Game Advertising Shows High Growth Potential
« Reply #19 on: October 19, 2004, 06:48:35 PM »
Quote

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*
::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.


Offline Caillan

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RE: In-Game Advertising Shows High Growth Potential
« Reply #20 on: October 19, 2004, 09:10:09 PM »
Quote

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.

Offline Renny

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RE:In-Game Advertising Shows High Growth Potential
« Reply #21 on: October 20, 2004, 10:01:12 AM »
...gamers tend to be receptive toward advertising.

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.
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Offline King Bowser Koopa

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RE:In-Game Advertising Shows High Growth Potential
« Reply #22 on: October 20, 2004, 10:19:18 PM »
I agree for the most part that it's a bad idea and will generally degrade viodegames from an art form to just another source of media tripe.
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.
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Offline odifiend

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RE: In-Game Advertising Shows High Growth Potential
« Reply #23 on: October 21, 2004, 06:44:48 AM »
Well, I'm not saying I'd be thrilled about more ads in games, but it will probably happen in more force eventually.  Video gaming now is a huge market and the perfect opportunity to advertise.  I'm with King B. Koopa hoping that ads in games will be limited to previews and ads of upcoming titles.  Unfortunately, I know that is pretty unrealistic.  A large benefit to this however, is that smaller game developers may have a means to enter the market and stay in the market if they sell over their soul to Pepsi Cola.  Sponsoring could be the answer to rising development costs and maybe even help subsidize the cost for gaming online.  Still, even with a sponsor system, I see companies like EA being invested in over and over again... ;___;  Market crash is imminent.
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Offline cubiot

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RE: In-Game Advertising Shows High Growth Potential
« Reply #24 on: October 21, 2004, 08:06:36 AM »
Mario rescues peach from the coors light castle.
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