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Joystiq

Analysts expect in-game ad spending to reach $1 billion

by Jason Dobson on May 26th 2009 8:40AM

Analysts at Screen Digest estimate we'll be seeing a lot more virtual billboards as companies throw greater sums of money at in-game advertising. A lot more. The UK-based firm suggests that spending on in-game ads will push beyond a $1 billion by 2014, accounting for about one and a half percent of total global advertising dollars spent.

This is despite what the firm refers to as "short term softness" of in-game ad spending so far in 2009. In fact, the company believes in its gilded heart that virtual billboards are here to stay, as they help reach groups of people who are "increasingly hard to reach via other media." So, listen rookie, those bullets the enemy are using are very real, so keep your head down behind that fallen Pepsi billboard over there and bring me a soda.

Source

Tags: advertising, in-game-advertising, screen-digest

Reader Comments (25)

All I can say is that if ad's begin to take over our games they better lower the price.
Freaking 70$ for a game loaded with 7-11 and Enterprise Rent a Car ads isnt very fair.
(Sounds Expensive! Pickups free mom)

The only game I know to date that implements a lot of ads is Midnight Club: Los Angeles. Heck, even some of their trophy/achievements were sponsored by T-mobile and Jordan

What I don't get is why don't they lower the prices of games for real. Think about it;
Sell the games for 40 instead of 60 and you'll sell alot more games, so you get more exposure for your ads.

Sounds logical to me.

You also lose a significant portion of revenue for each game. If a game sells 1 million copies at $60, the same game will have to sell 1.5 million to reach the same amount of revenue. I think the lower price + ads model really makes sense for games that are distributed online only. In this case, the savings in shipping and packaging would mostly offset the lowered revenue and the ads can just generate more money.

I don't think companies should be getting greedy, but with all the shops closing down, it seems like devs should consider less risky models that investing millions into a game only to have it sell poorly and bankrupt the company.

All I can say is atleast it gives me the opportunity to take my rage out on brands I really don't like....

Take that ShamWoW!

The Shamwow guy got arrested for biting a prositutes tongue.
We might not be seeing Vince for awhile

I know. But I still see those commercials. Vince getting arrested totally boosted his star power. That and the rapchop parody circling YouTube.

no the prostitute bit his tongue, and he beat her up

the best youtube one was the TF2 Scout advertising the slapchop

I definately have to look that up. My fiancee had her bridal shower Sunday....she got a slapchop.

I think this is one of the many situations where I can reference Wayne's World.

http://www.youtube.com/watch?v=XaSLTb7njVE&feature=related

Are there really 'many' situations?

No. .....And monkeys will fly out of my butt!

That shit makes me sad.

Honestly I wouldn't mind if they used the ad-money to make better games/dlc or lowered the price point on games. So long as the ads are placed intelligently and fit well into the already created atmosphere/universe of the game, go for it. I think games like Mass Effect, inFamous, and a few others already have a nice setup for ads.

ME could have them along the walls of the main station and even an ad or two in the ship, and inFamous has tons of unique buildings that could have Los Angelos-style ads. They could even rotate the ads on a regular basis so it doesn't become too stale. Say once or twice a week they bounce between two different billboard ads.

It seems these days there is more money in advertising than there is to be had in the actual product for sell.

In short: Ads can be good if done correctly, otherwise forget it.

it's okay with infamous since it's modern times, but ME, would it fit to be advertising Futureweapons on Discovery at 8 or Gillete Fusion when we use way more advanced weapons in the game and probably have lazor shavers?

Perhaps not, but the setup is right.

I know there are some games that use fake ads to seem more realistic. It just seems like these are the same types of games that would benefit from real ads.

I've a question for you Wayne. Why would you need a Gillete Fusion? Don't you have some magic tube that automatically dresses you and gets you ready each day, like they do in the Jetsons? I mean, you do have all that money after all. Why not invest in some future tech? Then you could market it inside of games like Mass Effect!

I'm pretty much with you on this point. Any game set in modern times becomes more realistic with legit billboards. Burnout Paradise has shown us a great example of how in-game ads can help lower prices and increase DLC support for games. I'd like to see more game companies follow that model, because I'd much rather pay $10 to add a cool feature to a game I already like, than to pay $60 for the next iteration of that title that has the feature added.

Well, while I agree that ads are most effective in a context that is relevant to the product (ie, a present day razor would seem out of place in ME) I do still think there is a good opportunity for the company to generate interest and brand recognition even though they may not be advertising a real product.

Even though it may reduce the value of the ad (because there is no real product to buy) imagine if Gillete advertised a lazer bladed auto shaver. It would be appropriate to the context of the setting. It would also be far more interesting than an ad for a regular razor, so in that sense, it could be even more affective.

that'd be a pretty sweet idea, "Introducing new nike thruster boots, just boost it" Haha

I actually enjoy ads in some games, at least the modern day setting ones. Driving around LA in Midnight Club seeing billboards for real products instead of made up ones made it feel more like a real LA, even Saints Row did it with ads for Spike TV and it gave me a good laugh

personally, ads in games like burnout paradise or crackdown dont bother me, as they fit in and arent a terrible eyesore. adds in games like gears, cod, or halo would really piss me off.

They said there were ads in Battlefield 2142 but I swear to god I haven't seen a single one. I think it had something to do with me being too busy trying to play the game or that they put the ads too high up in the air and I was always looking more toward the ground or something.

I don't mind in game ads until some jackass puts up super bright red orange or blue ads. If they look like honest to god ads in real life and lower the price of the game okay, otherwise I don't want to see them.

Can you image your gameplay being interrupted every ten minutes with a flippin' three minute infomercial? I shudder at the thought.

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Breaking News

Analysts expect in-game ad spending to reach $1 billion

Reader Comments (25)

Posted: May 26th 2009 8:45AM Brodo said

Posted: May 26th 2009 8:51AM (Unverified) said

Posted: May 26th 2009 9:09AM MystileArmor said

Posted: May 26th 2009 10:14AM nandokun said

Posted: May 26th 2009 8:46AM StormEagle said

Posted: May 26th 2009 8:50AM Brodo said

Posted: May 26th 2009 8:52AM StormEagle said

Posted: May 26th 2009 9:34AM TheDarkWayne said

Posted: May 26th 2009 9:37AM TheDarkWayne said

Posted: May 26th 2009 9:39AM StormEagle said

Posted: May 26th 2009 8:58AM The Blank Mage Returns said

Posted: May 26th 2009 10:16AM nandokun said

Posted: May 26th 2009 1:18PM The Blank Mage Returns said

Posted: May 26th 2009 9:15AM hey buddy said

Posted: May 26th 2009 9:17AM sonicspike41 said

Posted: May 26th 2009 9:38AM TheDarkWayne said

Posted: May 26th 2009 9:47AM sonicspike41 said

Posted: May 26th 2009 10:03AM CtrlBurn said

Posted: May 26th 2009 10:23AM nandokun said

Posted: May 26th 2009 11:24AM TheDarkWayne said

Posted: May 26th 2009 11:26AM TheDarkWayne said

Posted: May 26th 2009 10:51AM Rhamsey said

Posted: May 26th 2009 10:55AM (Unverified) said

Posted: May 26th 2009 12:16PM Antipilor said

Posted: May 27th 2009 7:10PM dak808 said

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