In Game Advertising

In-game Advertising

Bünyamin Güler, Cem Yücesan, Sercan Sert July 08, SRH Hochschule

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Introduction Market Why In-game Advertising work? (Graphs)

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Introduction  

What is In-game Advertising? Types of IGA

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

What is In-game Advertising? 

“In-game advertising is a creative advertising alternative to traditional television and radio commercials in which computer and video games are used as an advertising tool.”

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Types of IGA 

Static IGA

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Dynamic IGA

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Static IGA 

The first examples of in-game advertising

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Consisting of virtual billboards or in-game product placements

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Directly placed into the game, fixed and unchangeable

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adidas billboard is displayed in the FIFA International Soccer 94

First example in 1978 “Adventureland” Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Dynamic IGA 

First appearance in mid 2000s

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Changeable to geographical location or time of day

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Ads can be tracked and evaluated

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Ads can be altered remotely by the advertising agency

A poster campaign for Tripping the Rift can be found in the 2005 computer game SWAT 4

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Dynamic IGA

Gamer sees billboard with “Click to Unveil” prompt, encouraging gamer interaction with the brand message.

Gamer clicks on billboard which unveils additional imagery.

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

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Introduction Market Why in-game ads work? (Graphs)

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Market    

Who is the Intended Target Group? How is the Market Development? Existing firms Strategies of firms

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Who is the Intended Target Group?

http://www.massiveincorporated.com/ Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

How is the Market Development?

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

How is the Market Development?

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

How is the Market Development? 

Game industry expectations • Increase profits per game by $1-2 – Current profits of $5-6 per game • Compensate escalating development costs – $20m per new game project • Introduce new revenue models – “Free” mobile games, casual games, etc.

http://onetoone.blogs.com/engagement/MITX_OTO_InGameAd_Engagement_1.pdf Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Existing Firms 

Massive Incorporation (microsoft)

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leading company, was purchased by microsoft for approximately $300 million, more than 40 costumers, over 100 committed ads

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IGA worldwide

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Currently 23 firms in portfolio Contract with sony to put a series of ads in games for PLAYSTATION®3

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Double fusion

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works with leading game publishers such as: 2K, Rockstar, THQ, Eidos, Midway, Ubisoft, and others.

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Engage advertising

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More than 15 costumers 22 comitted ads

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Sources: Official websites of all four companies above Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Strategies 

Many companies include: IGA worldwide, Massive interactive, Engage Inc.

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Strategy is to asses demographic What they are selling, and who they are selling to

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Figure out how to place product well Calculate maximum time for seeing ad, while not being instrusive

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Very difficult to figure out product income from in game ad Need to be careful with investing money in game

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Underdeveloped strategy at present

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Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

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Introduction Market Why In-game Advertising work? (Graphs)

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Why In-game Advertising Work?

89% Of Americans watch primetime TV Of Americans watch a movie in a theater Of Americans play some kind of a computer/ videogame

4%

58%

Source: Frank N. Magid Associates, Inc. Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Do you play games online ? There are currently over 83 million gamers online 63.6 55.9 44.1

58.8 52.6 47.4

58.2 50.4 49.6

57.4

53.3 46.7 42.6

41.8

41.2 36.4

Yes

No

Total

Male

Female 13-17

18-24

25-34

35-44

45+

Source: Nielsen Interactive Entertainment 2006 Active Gamer Benchmark Study & Media Metrix, July 2006 Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Average Hours Playing Online Per Week •Active Gamers spend on average 11 hours per week playing online 13

•Active Gamers males spend 12 hours per week playing online

13

12 11 10 9

9 8

•Not surprisingly, teens are tied for the most time spent playing online per week (13 hours) •Active Gamers 45+ match teens with their time spent playing online per week (13 hours)

Total

Male Female 13-17 18-24

25-34

35-44

45+

Source: Nielsen Interactive Entertainment 2006 Active Gamer Benchmark Study; Base: Active Gamers who say they play online

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

How could in-game ads be effective?

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Examples

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Conclusion 

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Companies spend and earn a lot of money from their video game advertising. As a prediction in game ads and online will be more developed and in-game ads market will be more popular.

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin

Thank you for your ATTENTION!!!!

Güler, Yücesan, Sert, July 08,

SRH Hochschule Berlin