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Video games have evolved dramatically since the days of Pong and Space Invaders, as has the advertising contained within the formats. Kieron Matthews, head of marketing at the Internet Advertising Bureau, examines the rise of the media and its potentially massive benefits for advertisers…
Video games have come of age in the past 10 years. Many of us remember playing Pac-Man or Asteroids in the 1980s and although we may not have the time or the inclination to spend an evening with Battle Stations or FIFA 07, such titles are not only at the cutting-edge of gaming but also advertising, as they offer marketers a compelling route to distinct target audiences.
In-game advertising is not new, I remember playing Peter Shilton’s Handball Maradonna and Pitstop in the 1980s, which both featured their publishers own billboard house ads, while the 1985 hit Action Biker went a stage further with its KP Skips sponsorship.
Latterly video game ads have aped product placements in movies and TV shows, with messages appearing on pizza boxes, fizzy drink cans, billboards and shops. The number of items displayed is limited only by the advertisers’ imagination… Cars, clothes, consumer electronics items and FMCG being obvious selections.
In-game is probably one of the oldest forms of digital advertising, it’s surprising how long it’s taken for the industry to mature and get excited about the possibilities. Gaming is the fastest growing arm of entertainment and the expansion of online gaming is a powder keg of opportunities waiting for the fuse to be lit – real time ad serving to millions of people with the added sophistication of format selection and frequency capping.
Gone are the days of having to create ads prior to the game production process, or the inability to change an ad once it hits retail shelves, with dynamic, online-enabled, in-game advertising (DIGA) the rules of engagement have evolved into a two-way conversation between marketer and gamer.
Today’s ads are so sophisticated thanks to targeting based on a plot, a storyline or a player’s performance. Ads also can be served up following all kinds of triggers such as hitting a particular score or completing a move, sometimes followed up with SMS or email interaction.
As with all new formats there’s a danger of advertisers jumping on the bandwagon and not understanding the culture. Therefore, blindly booking ads that detract from the gaming experience and create negative rather than positive impressions will inevitably result in gamer discontent – remember the early days of online pop-ups?
For best results marketers should utilise the new breed of dedicated specialist agencies that understand the need for advertisers to focus on the player experience, relevancy and context of the game vs. the ad. We are not talking about streaming a 30-sec spot or transposing a six-sheet into a game – the creative needs to be bespoke. Good in-game ads are effective because players have no choice but to see them, but they don’t interrupt the experience.
But just how big is the market? Broadband and gaming market research firm Parks Associates estimates in-game ads generated $80 million in global revenue in 2005 and expects this to grow to $400 million worldwide in 2009.
According to researchers GameVision Europe, there are estimated to be 37 million gamers in UK, France, Germany and Spain racking up 11 hours of play each per week.
And it’s not just stereotypical 18 to 34-year-old men playing with their joysticks, women now account for around a third of UK gamers. Thirty-something women are the first generation to have grown up with video games. While boys may be obsessed with speed, soccer and shoot ’em ups, research by gaming firm Electronic Arts’ found that 40% of teenage girls also play video games. Separate research showed a disproportionate number of women playing bestsellers such as the Sims.
While many companies are clearly entering this marketplace, one of its biggest barriers to growth is the lack of third-party measurement – just how effective is it? A lot of models are being tried, but none has yet emerged as the best one. What we do know is that in-game is in a unique place joining the dots between above and below-the-line marketing. Although being digital in origin it’s actually closer to TV and outdoor in its execution, and that’s something we can all understand.