Placing adverts in video games is increasing in popularity, with a new deal between Midway Games Inc and Double Fusion signalling the rising demand and potential for advertisers.
The agreement will see dynamic adverts placed in online video games that will play on next-generation consoles such as Microsoft’s Xbox 360 and Sony’s Playstation 3.
According to Informa Telecoms, broadband games will make up 12.4% of the total gaming sector in 2010, up from 5.4% in 2005 (see Games Consoles Face Lull In 2006).
Adverts can be integrated into games in two ways, ‘Advergaming,’ where games are designed around a product to promote it, and in-game advertising, which sees products placed in games in the background, in the hands of characters, or elsewhere (see Advertisers Devise Ways To Cash In On Games Industry).
The in-game advertising market looks set to increase in popularity, with research from the Yankee group projecting the channel to total $562.5 million by 2009, up from $34 million in ad revenues in 2005, compared to $83.6 million in 2004.
Despite this expected growth, a recent survey of attendees to the recent AD:TECH conference, found that in-game advertising was low on the list of advertising tactics that marketers will be investing in.
However, the same marketers claimed that they anticipate a dramatic increase in video game ad spending by the end of the year and into early 2007.
The games industry as a whole is expected to enjoy strong growth over the coming years, with Kagen Research forecasting US game sales to increase to $16 billion by 2007, up from $10 billion in 2004, a rise of 16% (see Gaming Revenues To Rise 5.3% In 2005).
Related Links
