Biz advertising and video games


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Biz advertising and video games

  1. 1. Advertising and Video Games July 2008 © 2008 Media Contacts :: Havas Digital
  2. 2. Lead Contributors Noelle Sadler Project Manager Global Media Investments TS Kelly SVP, Director of Research & Insight, Havas Digital Anthony Rhind Chief Strategy Officer, Havas Digital If you want to receive the MC Insight periodically, please subscribe to © 2008 Media Contacts :: Havas Digital 1
  3. 3. Contents 1. Introduction 3 2. What’s Out There? 5 3. Advertising Models and Tactics 10 4. Planning Your Strategy 17 5. Endnotes 19 6. Glossary 20 7. Contacts 21 © 2008 Media Contacts :: Havas Digital 2
  4. 4. 1. Introduction Video games may conjure up images of teenage boys staring intently at screens, but in recent years, gaming has gone mainstream. Over 40% of U.S. households own a video game console system, and more than 120 million people regularly play video games on their PC or on a console, according to DFC Intelligence. Strategy Analytics predicts the video game console installed base should reach 150 million worldwide by 2010 (Figure 1). Figure 1 Video Game Console Sales, Households and Installed Base Worldwide, 2008-2012 2008 2009 2010 2011 2012 Sales (millions of units) 48.9 42.5 31.5 20.0 11.8 Households (millions) 70.2 97.0 111.6 112.4 102.2 Installed base (millions) 95.0 130.9 150.2 151.2 137.5 Note: excludes handheld gaming devices Marketers have traditionally shied away from gaming: violent themes, paired with the perceived user – teenage boys with minimal purchasing power – don’t do much to make games attractive. But recent advances in animation and in communications technology mean that today’s games offer much more variety – and they appeal to multiple demographics, including men, women and seniors. In fact, the gaming industry now generates more revenue than box office sales, movie rentals, and book and music sales. In 2006, video game revenues soared to $12.6 billion (+19% year to year), compared to U.S. box office receipts at $9.5 billion, flat from 2005. 1 Worldwide, video game and interactive entertainment revenue reached $33 billion in 2006. 2 According to Jupiter Research, the time U.S. teens spend with video games is now on par with radio, mobile devices, and music, and right behind watching television (Figure 2). © 2008 Media Contacts :: Havas Digital 3
  5. 5. Introduction Figure 2 Cumulative Time Spent on Video Games in League with Radio Cell Phones, and Music Mean Median 14 12 12 11 Hours per Week 10 10 9 10 8 8 7 6 6 5 5 4 3 3 2 2 2 0 ll) s io ne ic et TV ie us ad rn (A ho it g M te un R in P es In ed ch m ll am Ce at m rd G Co W o ec eo e R in id nl V O Platform and/or Application Source: JupiterResearch/Ipsos Insight Teen Survey October 2007, U.S. Teens ages 13 to 17 Video Games All = Handheld Consoles, PC Casual, PC Action and Console games Adults play video games at the office, on commuter trains, in coffee shops and in waiting rooms, on PCs and handheld systems. Thanks to Wi-Fi, they can play most games against live opponents – and see targeted, relevant messaging that can be updated every time they log on. In fact, video games have improved so dramatically that Media Contacts believes marketers must give game-related advertising strong consideration for a spot in any digital media mix. In this MC Insight, Media Contacts gives you a close look at video game advertising: successful executions by major brands, ways to conquer the specific challenges of the medium, and ideas that could help your brand hit a whole new level of engagement with consumers. And of course, we’re always interested in your particular business issues and questions, whether you’re already a Media Contacts’ client or just want to know more about this subject. So feel free to get in touch. Contact your Media Contacts account director, the Media Contacts managing director in your country, or an MC Insight author. Phone numbers and e-mail addresses are at the back of this publication and at © 2008 Media Contacts :: Havas Digital 4
  6. 6. 2. What’s Out There? Games, Consoles & Companies The Atari 2600 and the early systems from Nintendo and Sega are the stuff of legends. But today’s options blow the old ones out of the water, for marketers and for players. Consumers today can play at home on a dedicated console, like Sony PlayStation, Microsoft Xbox, or Nintendo Wii; at work on their PCs, using a CD or DVD, or by going online; and anywhere on handheld portable devices, like mobile phones, PDAs, Sony PSP and Nintendo DS. Most games get released on multiple platforms so they reach the maximum number of consumers. Of course, that makes video game advertising a little more complicated than print and TV, where the same ad can easily be adapted for different media. But as development of cross-platform game titles increases, advertising across gaming platforms will likely get easier, too. © 2008 Media Contacts :: Havas Digital 5
  7. 7. What’s Out There? One game – six different formats In fact, it’s to the video game industry’s advantage to make the whole process simpler for everyone: The top two features consumers consider when buying a console are backward compatibility (i.e., the ability to play PlayStation 2 games on PlayStation 3) and the selection of games. The ones to watch in the battle for consumers’ attention are Sony, Microsoft and Nintendo. Two years into the current console cycle, PlayStation 2 is still the most highly penetrated platform. 3 According to Screen Digest, Sony’s PS3 console, which had a slow start in 2007, may be poised for a fast-paced rise in Europe (Figure 3) and worldwide, likely moving ahead of Microsoft’s Xbox 360 and the Nintendo Wii in the next two or three years. Figure 3 Europe: installed base by platform Microsoft Xbob 360 Nitendo Wii Sony Playstation 3 20 15 Installed Base (m) 10 5 0 2005 2006 2007 2008 2009 2010 2011 Source: ScreenDigest, November 2007 So what else drives console sales? Sometimes, a hot game. The mega-popular Grand Theft Auto franchise, a long-term Sony exclusive, helped boost sales of PlayStation 2. The latest edition, Grand Theft Auto IV, was released for both the PlayStation 3 and Xbox 360 in April 2008, ending that exclusivity. © 2008 Media Contacts :: Havas Digital 6
  8. 8. What’s Out There? Microsoft has seen the wildly popular Halo franchise boost worldwide sales of Xbox 360 (currently second behind Nintendo’s newest entry, the surprise hit Wii, gaining more ground all the time among women and seniors). When Halo 3 was released in September 2007, it racked up more than $170 million in U.S. sales on the first day, and $300 million for the entire opening weekend. That’s 5 million copies. About 2.7 million users played it on Xbox Live in the first week, one-third of the Xbox Live subscriber base. 4 Video Games - By the numbers Source:, Global, April 2008 Global growth trend of main three consoles Nov ’06 - April ’08 Source:, Global, April 2008 2007 Console Game Sales (U.S. only) TITLE PLATAFORM PUBLISHER RELEASED COPIES SOLD (millions) 1) Halo 3 Xbox 360 Microsoft September 4.82 2) Wii Play With Remote Wii Nintendo February 4.12 3) Call of Duty 4: Modern Warfare Xbox 360 Activision November 3.04 4) Guitar Hero III: Legends of Rock PS2 Activision October 2.72 5) Super Mario Galaxy Wii Nintendo November 2.52 6) Pokémon Diamond DS Nintendo April 2.48 7) Madden NFL 08 PS2 Electronic Arts August 1.90 8) Guitar Hero 2 PS2 Activision November 2006 1.89 9) Assassin’s Creed Xbox 360 Ubisoft November 1.87 10) Mario Party 8 Wii Nintendo May 1.82 Source: NPD, January 2008, U.S.only © 2008 Media Contacts :: Havas Digital 7
  9. 9. What’s Out There? Core vs. Casual Gaming Those are big, impressive numbers from companies that excel at creating “core” games. Just as impressive is the growing popularity of “casual” games, which reach a more mass-market audience. Each provides opportunities to reach different consumers. For example, core gaming lends itself to in-game advertising, ads that appear organically in the context of the game. Casual gaming is better suited to advergaming – simple, easy-to-play games built around a particular brand. More on that later. First, let’s define core and casual. Core games tend to be highly immersive, and demand ability and skill. They’re developed for a dedicated console or PC. Top games can take 20 hours or more to complete, and some have storylines that allow for continued play even after the major goals of the game have been achieved. Top console games such as Grand Theft Auto IV or Halo 3 are known for excellent graphics and physics (i.e., realistic control of players, vehicles and weapons), high quality audio and music, elaborate storylines, engaging characters, rewards for time spent, and multiple side plots and missions . Meanwhile, a growing segment of core gaming is attracting a more mainstream audience: Web-based massively multiplayer online games, or MMOGs. Popular MMOGs like World of Warcraft and Second Life let thousands of players interact simultaneously in persistent environments with great physics. Some are even free to play. 5 When Second Life launched, it won a frenzy of attention from marketers, and then their scorn in quick succession. The new worlds, some with the backing of major media companies, are more targeted. Club Penguin, owned by Disney, in which kids pay $5.95 a month to play with penguin characters, attracts seven times more traffic than Second Life. Disney is now developing a portfolio of virtual worlds for kids and teens. Habbo Hotel, based in Finland and operating in more than 30 countries, allows its 8 million teen users to use the world for free, but charges them for extras for their avatars and environments. If you want to go deeper into the top virtual worlds, check out the edition of MC Insight called Marketing in Second Life at Casual gaming tends to engage a more mass-market audience than core gaming, partly because users don’t need to spend a lot of time or money. This category includes everything from Solitaire and Tetris to online games downloaded or played for free. These appeal to different consumers than core games do: While 80% of console gamers are men, 60% of casual gamers are women, most over 35 years old, according to the Interactive Advertising Bureau. Casual gaming sites like MSN Games, Yahoo! Games and AOL Games have millions of monthly unique visitors. Miniclip, the largest casual games space in the EU, is growing rapidly in both North America and Asia, thanks to downloadable toolbars and games that tend to be more creative than those on Yahoo! or MSN. © 2008 Media Contacts :: Havas Digital 8
  10. 10. What’s Out There? Console or PC Gamers Skew Young and Male; Casual Gamers Skew Older and Female 100% 8% Percentage of Segment 14% 23% 80% 41% 55% 23% 23% 60% 21% 40% 55% 59% 20% 45% 33% 0% PC or Console Casual Gamers PC or Console Casual Gamers Gamers Gamers Age 18 to 34 Age 35 to 44 Age 45 to 54 Age 55+ Men Women Source: JupiterResearch/Ipsos Insight Consumer Survey, June 2007,U.S. Only Casual gaming has boomed in recent years. In the United States alone, the industry went from almost zero in 2002 to well over $600 million in 2004. Some industry experts say the casual gaming market will surpass $2 billion in 2008. 6 There are several reasons for this. First, an increase in investment by publishers, retailers and developers. Electronic Arts created a casual games publishing label in 2007. Second, consumers are spending more time online, and broadband gives them better access to games. Experts suggest that as games become increasingly available online and elsewhere, consumers will play more and more. Finally, the high cost of console games might have an impact. New console titles like Halo 3 or Grand Theft Auto IV can run US$50 or more and require hours spent learning intricate storylines and game controls. For consumers who just want a few minutes of fun, casual games are the answer. Casual gaming sites use two basic revenue models: ad-supported ( and, where games are free to play, and subscription (, and, where consumers can try before they buy. Casual gamers are increasingly social, sharing games and comparing scores, which in turn encourages more play. The New York Times reported in March 2008 that Scrabulous, which can be played on Facebook, had rocketed to 700,000 players a day, with 3 million registered users. Challenge: Hitting the right demographic. Casual gamers playing word and puzzle games online are not likely the same demographic as core gamers playing Halo 3 on Xbox. Choose your placement with that in mind, so your ad feels organic to the game – and to the players. © 2008 Media Contacts :: Havas Digital 9
  11. 11. 3. Current Advertising Models Advertising in video games can be broken down into two broad categories: advergaming and in-game advertising. Advergames are commissioned or sponsored by a marketer, and designed from scratch around a brand or product. They deliver brand messages, drive web traffic and build awareness. Most can be played for free. It’s a simple value exchange: Users give a brand their attention, and the brand provides an entertaining experience. 7 Advergames are incredibly flexible. They can be developed for IM applications, banner ads, mobile devices, interactive billboards, web sites, Facebook applications, widgets and more. And they can outlast a typical ad execution. In 2006, Reckitt Benckiser launched the Flash-based clearahill advergame (image right) for teen skincare brand Clearasil. Two years later, the game is still popular, drawing traffic to a microsite and links from multiple gaming sites. An Advergame by Orbitz (image left) that originally launched as a series of mini-games in banner ads and pop-ups eventually evolved into its own microsite. The best advergames keep things simple but offer players a real challenge. FreeRice, an advergame that raises money for the U.N. Food Program, is just a multiple-choice vocabulary game that gets harder as you progress. At 10 to 20 grains of rice per correct answer, FreeRice players generated nearly 35 billion grains of rice between October 2007 and May 2008. © 2008 Media Contacts :: Havas Digital 10
  12. 12. Current Advertising Models Here’s another great example of advergaming: the 2006 series of branded Xbox games from Burger King (image below). These games integrated King, a quirky character from BK marketing campaigns, and were an immediate hit. The advergames were sold exclusively in BK restaurants for $4 each with the purchase of a Value Meal. Brand awareness went up, Value Meal sales spiked, and Burger King sold more than 2 million games (US$8 million) in just four weeks, creating an entirely new revenue stream. In-game advertising integrates a brand into a pre-existing narrative. In-game ads can be static, meaning they stay the same every time the game is played, or dynamic, meaning they can be manipulated via an Internet connection to precisely target the player. Static in-game ads are typically hard-coded during development and appear as billboards or props, like vending machines, or on game menus and loading screens. Usually, a player can interact with branded billboards, signs and more to get information he needs to progress in the game. A player fuels up at a Shell-branded station in Test McDonald’s and Coca-Cola in Doom 3. Drive Unlimited by Atari for Xbox 360. And why not? Look at those gas prices! This static in-game ad for Unilever’s AXE in the 2005 Ubisoft game Splinter Cell: Chaos Theory is high impact and extremely realistic, both characteristics of core games. Plus, it kind of makes us feel like we could ride a power line. Now that’s good advertising. © 2008 Media Contacts :: Havas Digital 11
  13. 13. Current Advertising Models Two-thirds of all video game advertising spend in the U.S. will be ‘in-game’ by 2012. 2007 2008 2009 2010 2011 2012 In-game advertising* total $295 $403 $511 $589 $625 $650 Console and PC-based $90 $117 $143 $162 $169 $172 Web-based $205 $286 $368 $427 $456 $478 Advergames $207 $262 $311 $339 $344 $350 Video Game advertising total $502 $665 $822 $928 $969 $1,000 Source: eMarketer, February 2008, U.S.only, excludes mobile game advertising Dynamic in-game ads can be updated every time the game is played, if the PC or console is connected to the Internet. The ad-serving agency factors in the user’s geographic location, the day of the week, time of day, length of play, and any other available user information. Marketers can get data on exposure time and ad type, and agencies can optimize performance. T-Mobile and McDonald’s in EA’s Battlefield 2142. When this game first included dynamic ads in 2004, gamers derided it as spyware – but they still played. This kind of highly targeted advertising is currently available on a wide range of titles for the PC and Xbox 360 (Xbox Live). Sony recently announced it would allow all ad-service companies to reach its PS3 user base (except Microsoft’s Massive, a huge competitor). Nintendo has a no-advertising policy for its consoles. Challenge: International releases. An ad server can deliver specially targeted ads to a gamer in France and a gamer in the U.S., even if they’re playing each other. But static in-game ads are trickier. The right ads have to be placed in each version of the game during development. Red Bull, for instance, is a perfect fit for many game titles, in many countries – but not in Scandinavia, where the stuff is illegal. There, that’s a little beverage trivia for you. © 2008 Media Contacts :: Havas Digital 12
  14. 14. Current Advertising Models Variations on existing advertising methods Now that we have the ground rules established, let’s talk about variations. These work for advergames and in-game advertising: Pre-game, post-game and interstitial ads: These can roll before gameplay even begins – for example, as a loading screen – or after a specific level or time period, or at the end of a game session. In-game interstitial ads by MacDonald’s in the online game Power Soccer (abroad, Power Football). One distinct advantage of video-game sports over real-life sports: no diet restrictions. Sponsorships allow a marketer to own 100% of the territory in and around an existing game. A brand can sponsor a gaming tournament, a zone, or even the release of exclusive content, like unlock codes for special features, hidden items, extra levels and more. 8 Product placement in video games works a lot like placement in movies or television, with opportunities for integrated brand messaging, sponsorship, and use of products or services by the characters. These elements are typically hard-coded into games and can require long lead-times, usually nine to 18 months prior to release. Rising game development costs (now into the millions) sometimes force marketers to make a significant investment upfront. It can be worth it: Your brand could be permanently as- sociated with a high-profile entertainment franchise. In the 2003 film Tomb Raider: The Cradle of Life, Lara Croft (portrayed by Angelina Jolie) traded in her Land Rover from the first film to drive a specially equipped Rubicon edition Jeep Wrangler. The Wrangler Rubicon (image left) was also one of several Jeep vehicles featured in the 2006 Eidos game, Lara Croft Tomb Raider: Legend. © 2008 Media Contacts :: Havas Digital 13
  15. 15. Current Advertising Models Challenge: Long lead-times. Some games take three to five years to produce, well beyond the shelf life of most ad campaigns. Since no one ever knows whether a game will be a hit, a pact upfront is a gamble. You could wait for the sequel – but if the first is a blockbuster, the price of a deal will rise accordingly. Co-branding gathers many of the best elements of video game advertising. For example, Lego announced in May 2008 it was building a subscription-based MMOG for kids, Lego Universe. Players have to spend virtual money to buy bricks, but they’ll earn more just by playing the game. Game skinning lets a brand sponsor display units around game content and includes custom branded integration in the game. This isn’t as expensive as other executions but also doesn’t allow for as much creativity, as it’s akin to recycling an existing game. Challenge: Gamer backlash. This is one of the biggest potential pitfalls. If advertising is too obvious or clunky, or it detracts from the game, you’ll get the opposite of the reaction you’re looking for. Plus, according to Nielsen research, well-placed ads can actually further the plotline of a game and expand the consumer base for a brand. When in doubt, ask whether the player is getting any added value from your ad placement, and whether its placement will strike the player as organic. Yes? You both might win. The Major Players of In-Game Advertising Media Contacts works directly with all of the major technology providers currently in the in-game advertising space. The following is a brief overview of the three largest firms. Marketers should contact their local Media Contacts office to arrange an in-depth briefing on the advantages and challenges of working with many of today’s emerging providers. Massive Incorporated, a wholly owned subsidiary of Microsoft as of 2006, delivers dynamic in-game advertising for more than 40 game publishers. 9 Massive can target users by geography, time, day, session length, and other user information. Massive software codes must be integrated into games during development. Massive’s relationship with Microsoft restricts it to PCs, Xbox and Xbox 360 platforms. On the flip side, marketers who want a piece of Xbox 360 or any Microsoft game must work with Massive, since no other companies are permitted to serve ads in its games. It’s restrictive, but apparently it’s effective. In a 2007 study by Massive and Nielsen Entertainment, 10 in- game ad campaigns in the Massive network got results: Average brand familiarity increased by 64% Average brand rating increased by 37% Average purchase consideration increased by 41% Average ad recall increased by 41% Average ad rating increased by 69% © 2008 Media Contacts :: Havas Digital 14
  16. 16. Current Advertising Models Across major advertising categories, the metrics were just as impressive: Automotive: 69% increase in purchase consideration Consumer packaged goods: 71% increase among those who consider the snack food advertised a “cool brand” Quick service restaurants: 39% rise in the rating of the featured QSR Technology tools: 70% increase in brand rating for the featured tech client In September 2007, Double Fusion announced it would make its “fusion.runtime” ad solution available to publishers and developers. This could have major implications for the industry. The software lets developers build advertising support into their titles even after code development is complete, including back catalog titles. All publishers need is a simple patch. STRATEGIC MOVE – MASSIVE INC. In March 2008, Massive renewed its ongoing relationship with game developer Electronic Arts. The agreement means that popular EA titles such as Madden NFL Football, NBA Live, NHL Hockey and FIFA will be on the Massive ad network for an additional two years, through 2010. Well played, Massive. That means old titles can be re-released and sold at a significant discount (or given away for free), since publishing and distribution costs can be covered via marketing partnerships. And unlike Massive, Double 10 Fusion offers an array of ad solutions: dynamic ads, static in-game advertising, product placement and advergames. STRATEGIC MOVE - DOUBLE FUSION In April 2008, Double Fusion deepened its involvement in virtual worlds by inking a sales agreement for Habbo’s ad inventory in the U.S. Double Fusion has worked with SK Telecom’s Cyworld, a virtual world in South Korea, where nearly everyone has an online presence. Source: Double Fusion company web site IGA Worldwide, Inc. also boasts a proprietary ad-serving network, Radial. It provides strategic consulting services, including integrated product placement and co-promotion, through its wholly owned communications consultancy, Hive. 11 Radial 2.0, announced in January 2007, includes support for Adobe Flash SDK for advertising in Flash- based games, an advanced web-based ad booking system, city-level geotargeting, and encrypted local ad cache to complement existing two-way 1024-bit secure traffic encryption. 12 © 2008 Media Contacts :: Havas Digital 15
  17. 17. Current Advertising Models STRATEGIC MOVE - IGA WORLDWIDE In October 2007, IGA Worldwide announced a deal with NBC Universal Digital Media, in which the NBCU sales team gained access to part of IGA’s premium in-game ad inventory and permission to create customized packages for NBCU clients on the IGA network. Challenge: Tracking. Metrics are still evolving. Nielsen has partnered with Massive to provide tracking and metrics for its network; Nielsen has also announced its own GamePlay Metrics for all in-game ads. As for advergaming, click-through is fairly easy to track and monitor, but the amount of time a player spends with an ad is sometimes more important than the number of impressions. For both categories, there’s a lot of room for improvement. © 2008 Media Contacts :: Havas Digital 16
  18. 18. 4. Planning Your Strategy These days, consumers expect marketing to be creative, engaging and even useful, just like any other digital content. Video game advertising, specifically, is going through such an evolution, offering marketers new methods to reach consumers in ways that make a positive impact. Brands can become part of the storyline in top console games, engage consumers with advergames, and participate in virtual worlds. In addition, the largest game releases such as Grand Theft Auto IV and Halo 3 are of such high quality, they create bigger social events than some of the largest Hollywood blockbusters. In addition, like Hollywood blockbusters, many major games titles are released globally, offering dynamic advertising opportunities as ‘local’ as the marketer desires. All that flexibility means there’s a fit for almost any brand and any demographic, from teens to moms, and from businesspeople to seniors. We hope this introduction to the marketing actions associated with gaming has given you reason to investigate opportunities for your brands. Please do not delay adopting this channel as part of your marketing mix as the number of people interacting with both core & casual games has already reached mass market levels in North and South America, Western Europe, Asia-Pacific and elsewhere. © 2008 Media Contacts :: Havas Digital 17
  19. 19. Planning Your Strategy As detailed in the chart below, there are a number of viable options for both creativity and customization in the video game advertising space. Marketers can choose existing techniques for their brands, or work with Media Contacts to create new solutions to fit their unique advertising needs. In-game static placements In-game dynamic placements Advergaming Ads are hard-coded into the game Ads are placed in game Developed from scratch as part of environment during the dynamically based on time, day, a larger marketing program, both Description development process geographic location, session online and offline to deliver a lenght and user info (if available) specific value proposition to a specific demaographic target Highly immersive environment Immersive with a possible ‘social Either online or downloaded, Marketing typically associated with ‘core’ layer’ based on the connected game environment is typically much environment gamer characteristics state in which ads are served more casual and in shorter bursts compared to in-game delivery All console and PC platforms Xbox 360 via Xbox Live, PC and Typically PC (online and offline), Available PS3 ( forthcoming) PDAs and Mobile handsets platforms Product integration in TV, film and 15 second video ads, genre Loyalty programs, experimental Comparable video specific print, out-of-home marketing, guerilla marketing vehicles Brand awareness, product benefits “Call to action” messaging, On-going source of affinity, Communication immediate response awareness, and social interaction principle Ad-hoc measurement need to Syndicated services (Nielsen,etc) Analytics such as Artemis to measure brand lift and ROI to project reach, limited exposure determine delivery, interaction, Measurement metrics from ad serving entities opt-in rates, and other response metrics Anywhere from 6 months to 2 Real-time delivery 4 to 6 months Development years based on game time development process Publishers: Sega, EA, Ubisoft, Delivery Networks: Massive Game developers: Skyworks, Take-Two, Activition/Blizzard, (Microsoft), IGA Worldwide, Digital Chocolate, Wild Tangent, Key players Konami, THQ, Sci, Vivendi AdScape (Google), Double Fusion Enpocket Source: MPG Research / Media Contacts It’s a challenging – and rapidly evolving – sector, but Media Contacts believes that gaming has a lot to offer marketers right now - high attention environment, low clutter, with the additional benefit of sophisticated ad targeting & tracking in real-time. Brands must get active now, to test, learn, refine ... if you don’t understand & exploit this new mass targetable medium now you can be assured that your competitors most certainly will. If you’d like to talk with us about game-related advertising and your brand, or if you have questions about this MC Insight, feel free to get in touch. Contact your Media Contacts account director, the Media Contacts managing director in your country, or an MC Insight author. Phone numbers and e-mail addresses are located in the back of this publication and at © 2008 Media Contacts :: Havas Digital 18
  20. 20. 5. Endnotes 1. Wedbush Morgan Securities. “Entertainment Software Publishing and Retail Report.” May, 2007. 2. DFC Intelligence. 3. “Teen Audience Benchmark, 2007: Xbox 360 Lead Threatened by Enthusiasm for Wii”, Jupiter 2007 4. “Bad Box Office? Blame ´Halo´”, Advertising Age, October 15, 2007. 5. Wikipedia. 6. IGDA white paper 2006. 7. IDGA White Paper 2006. 8. Interactive Advertising Bureau: Game Advertising Platform Status Report, October 2007. 9. Massive, Inc. company web site. 10. Nielsen / Massive In-Game Advertising study, August 2007. 11. IGA Worldwide company web site. 12. - Product: IGA Worldwide Releases Radial 2.0 Ad Serving Tech, January 16, 2007. © 2008 Media Contacts :: Havas Digital 19
  21. 21. 6. Glossary Advergame – An online or downloadable game where the primary objective of is to deliver advertising messages, drive traffic to web sites, and build brand awareness Casual games – These generally have uncomplicated game controls and require less time to play. Core games – Also known as “traditional” games, these are developed for and delivered on a dedicated game console (set-top or handheld) as well as CD-ROM or DVD. Core games generally have complicated game controls and an overall complexity in terms of gameplay or required investment of time. Dynamic in-game advertising – Advertising placements are served dynamically by a third party and delivered to connected consoles. Ads are delivered based on players’ geographic location, the time of day, and other factors, and can be delivered within weeks of the advertiser’s decision to buy ad space in a game. In-game advertising – Advertising placements within a video game environment. These advertising elements may exist as static or dynamic placements or as brand integration or product placement. MMOG – Massively Multiplayer Online Game, featuring an alternate, persistent world in which thousands of players can interact simultaneously. These include role-playing games (MMORPG), first-person shooters (MMOFPS), games of strategy, and racing games, to name a few. Static in-game advertising – Advertising placements are hard-coded into the game during development and cannot be changed or removed once a game has been released. These may include roadside or courtside banners and billboards, and even jerseys or shoes on athletes. Virtual world – An alternate, persistent world in which thousands of players can interact simultaneously as in an MMOG, but in which there exists no definitive gameplay. Virtual worlds exist as a form of alternate reality; users create avatars (pixel versions of themselves – realistic or otherwise) in order to interact with others. Xbox Live – Online community component of Microsoft’s Xbox offering, wherein users can compete in real time against other players around the world, download games or additional game materials, chat through MSN Messenger, or rent or download movies and television shows. (Sony plans to launch a similar offering for PlayStation with its Sony Home concept). © 2008 Media Contacts :: Havas Digital 20
  22. 22. 7. Contact us We encourage you to contact us directly to discuss, in more details, any concern you may have regarding this MC Insight issue. We will be happy to assist you. GLOBAL OR contact the MEDIA CONTACTS OFFICE MC Amsterdam MC Barcelona Address: Burg. A. Colijnweg 2, Address: Avda. Sarrià, 102-106, 9ª. 1182 AL Amstelveen Netherlands 08017 Barcelona, Spain Phone: +31 0 20 408 90 00 Phone: +34 93 205 87 71 Fax: +31 0 20 408 90 01 Fax: +34 93 280 05 63 Managing Director: Björn Brouwe Managing Director: Gabriel Saenz de Buruaga Email: Email: MC Beijing MC Bilbao Address: Room 2001, 20/F, Tower B, Global Trade Address: Elcano 14, Entreplanta Derecha, Center No.36 Dong San Huan Road, Dongcheng 48008 Bilbao, Spain District, Beijing, 100013, China Phone: +34 94 434 07 56 Phone: +86 10 5923 2923 Fax: +34 94 410 45 37 Fax: +86 10 5825 6173 Managing Director: Gabriel Saenz de Buruaga Managing Director: Leon Lu Email: Email: MC Bogotá MC Boston Address: Carrera 7 No. 71-21 Torre A Piso 12, Address: 101 Huntington Avenue, 16th Fl, Boston MA Edificio Avenida Chile, Bogotá, D.C.Colombia 02199 USA Phone: +57 1 325 8341 Phone: +1 617 425 4100 Fax: +57 1 317 3464 Fax: +1 617 425 4101 Managing Director: Carolina Jaramillo Managing Director: Ed Montes Email: Email: MC Brussels MC Budapest Address: Rue Maurice Charlent, 53 Address: 1117 Budapest, Alíz u.1 Office 1160 Auderghem, Belgium Garden Building 5th Floor (Szerémi; Phone: +32 2 349 1560 u-Hengermalom u.corner), Hungary Fax: +32 2 349 1570 Phone: +36 1 799 1820 Managing Director: Stephanie Radochitzki Fax: +36 1 799 1821 Email: Managing Director: Péter Szeder Email: MC Buenos Aires MC Chicago Address: Talcahuano 833, piso 2B Address: 36 East Grand, 5th Floor, Chicago, C1013AAP, Ciudad Buenos Aires Argentina IL 60611, USA Phone: +54 11 5777 7400 Phone +1 312 337 4400 Fax: +54 11 5777 7401 Fax +1 312 337 3898 Managing director: Lucas Mentasti Managing director: Ed Montes Email: E-mail: © 2008 Media Contacts :: Havas Digital 21
  23. 23. Contact Us MC Copenhagen MC Dubai Address: Jagtvej 169B, DK 2100 Address: Dubai Media City, CNN Building #2, Copenhagen O Denmark Office #511 PO Box 21448 Dubai UAE Phone: +45 7733 4300 Phone: +971 4366 4100 Fax: +45 7733 4433 Fax: +971 4391 8001 Managing Director: Soren Bronee Managing Director: Joe Hanoun Email: Email: MC Frankfurt MC Helsinki Address: Hedderichstrasse 108-110; Address: Arabianranta, 6, Helsinki, 60596 Frankfurt, Germany Finland Phone: +49 69 6091 9134 Phone: +358 4 0746 1441 Fax: +49 69 610462 Managing Director: Ismo Tenkanen Managing Director: Jens Hofmann Email: Email: MC Hyderabad MC Hong Kong Address: 6-3-899/I, Second Floor, R.V.’s Address: 32 Floor, Chinachem Building, Kamala Castle, Somajiguda, Hyderabad Exchange Square, 338 Kings Rd, Northpoint, 500 082 - India Hong Kong, China Phone: +91 40 64563186/66139968 Phone: + 852 2590 1814 Managing Diretor: Kushal Sanghvi Fax: + 852 2516 5411 Email: Managing Director: Sean de Cuirteis Email: MC Kuala Lumpur MC Lima Address: F-39-11, Level 11, The Crest, 3Two Address: Av. Victor Andrés Belaunde 147 Torre Square, No. 2, Jalan 19/1, 46300 Real Uno Oficina902 Centro Petaling Jaya, Selangor Darul Ehsan, Malaysia Empresarial - San Isidro, Lima - Peru Phone: +603 7628 6658 Phone: +511 611 8800 Fax: +603 7628 6777 Fax: +511 611 8803 Managing Director: Rajeev Balasubrahmanya Managing Director: Enrique Agois Email: Email: MC Lisboa MC London Address: Avenida Duque de Ávila, 46 - 5ºAv. Address: 11 Great Newport Street, 1050-083 Lisboa, Portugal WC2H 7JA London, UK Phone: +351 21 791 3388 Phone: +44 0 20 7393 9000 Fax: +351 21 791 3340 Fax: +44 0 20 7393 2525 Managing Director: José Frade Managing Director: John McLoughlin Email: Email: MC Madrid MC Manila Address: Avda. General Perón, 38, 14ª Madrid Address: 38/F Discovery Center 28020, Spain 25 ADB Avenue Ortigas Complex, Pasig City, Phone: +34 91 456 90 50 Philippines Fax: +34 91 770 15 86 Phone: +632 910 6387 Managing Director: Gabriel Saenz de Buruaga Fax: +632 910 6420 Email: Managing Director: Eduardo Mapa Email: MC Milano MC Mumbai Address: Bastioni di Porta Volta, 10 Address: Brady Glady’s Plaza, Unit 1, 20121 Milano, Italy 2nd Floor, Senapati Bapat Marg, Lower Parel, Phone: +39 02 6744 3201 Mumbai-400 013 India Fax: +39 02 6744 3222 Phone: +91 22 30036400/ 33 Managing Director: Georgia Giannattasio Managing Director: Kushal Sanghvi Email: © 2008 Media Contacts :: Havas Digital 22
  24. 24. Contact Us MC Mexico DF MC Melbourne Address: Piso 24 Col. Desarrollo Santa Fe Address: 113 York Street 01376 Mex DF, Mexico. South Melbourne, VIC, 3205 Phone: +52 55 9177 6081 Australia Fax: +52 55 9177 6005 Phone: +61 3 9693 5988 Managing Director: Mauricio Vazquez Fax: +61 3 9690 5706 Email: Managing Director: Nick Behr Email: MC Milano MC New Delhi Address: Bastioni di Porta Volta, 10 Address: 30 Haus Khas Village, 3rd Fl, New Delhi 20121 Milano, Italy 110016 India Phone: +39 02 6744 3201 Phone: +91 11 3984 4400/11 Fax: +39 02 6744 3222 Fax:+91 222 491 5766 Managing Director: Gionata La Torre Managing Director: Kushal Sanghvi Email: MC Paris MC New York Address: 11 Square Leon Blum, Puteaux Address: 195 Broadway, 12th Floor; Cedex F92806, France New York, NY 10007, USA Phone: +33 1 46 93 33 33 Phone: +1 646 587 5000 Fax: +33 1 46 93 35 37 Fax: +1 646 587 5005 Managing Director: Christophe Dané Managing Director: Ed Montes Email: Email: MC Riga MC San Francisco Address: Kr. Barona Street 36-9, LV 1011 Address: 555 Post Street; Riga, Latvia San Francisco, CA 94102, USA Phone: +371 2961 5655 Phone: +1 415 345 7700 Fax: +371 6728 5666 Fax: +1 415 345 6666 Managing Director: Janis Krauklis Managing Director: Ed Montes Email: Email: MC Santiago de Chile MC Sao Paulo Address: Avda. Ricardo Lyon 222, Address: Rua Luigi Galvani 42, 11º Andar; piso 12 of. 1201-B Providencia 7510125 Conj 125; Brooklin 04575-020 Santiago de Chile, Chile São Paulo, Brazil Phone: +56 2 714 8100 Phone: +55 11 6889 5650 Fax: +56 9 865 3083 Fax: +55 11 5506 4753 Managing Director: Gonzalo Parra Managing Director: André Zimmermann Email: Email: MC Shanghai MC Singapore Address: Room 8011-8012, 8/F, Novel Building Address: 3 Anson Road #06-01 No. 887, Huaihai Zhong Road. Springleaf Tower 079909, Singapore Shanghai, China, 200020 Phone: +65 6317 6698 Phone: +86 21 6467 6368 Managing Director: Rajeev Balasubrahmanyam FAX: +86 21 6467 6369 Email: Managing Director: Leon Lu Email: MC Sydney MC Tallinn Address: Level 16, Town Hall House 456 Address: Pärnu mnt 102C, Tallinn, Kent Street, Sydney NSW 2000, Australia Estonia Phone: +61 2 9266 1701 Phone: +372 669 1000 Fax:+61 2 9283 9024 Fax: +372 669 1001 Managing Director: Nick Behr Managing Director: Kaarel Oja Email: Email: © 2008 Media Contacts :: Havas Digital 23
  25. 25. Contact Us MC Toronto MC Valencia Address: 1920 Yonge Street Address: C/ Roger de Lauria, 19-4c, 46002, Toronto Ont M4S3ER, Canada Valencia, Spain Phone: +1 416 480 7965 Phone: +34 96 353 08 74 Fax: +1 416 480 6666 Fax: +34 96 351 15 69 Managing Director: Chris Williams Managing Director: Gabriel Saenz de Buruaga Email: Email: MC Vilnius MC Warszaw Address: Jogailos 4, Vilnius, Address: ul Postepu 13; 02-676 Lithuania Warsaw, Poland Phone: +370 5249 7063 Phone: +48 22 843 66 60 Fax: +370 5269 0100 Fax: +48 22 843 66 61 Managing Director: Vytautas Kubilius Managing Director: Slawek Kornicki Email: Email: © 2008 Media Contacts :: Havas Digital 24