Free Gaming Special Report

the gaming industry / executive summary / p.02 01 / pages 02-03 EXECUTIVE SUMMARY CHAPTERS / A / Video games constitute the fastest-growing market in the entertainment sphere 01 / B / Internet-connected consoles and PCs have opened up new opportunities for brands SUMMARY 02 / C / Dynamically-delivered ad content is increasingly becoming the norm INTRO D / Advergames, MMOs and mobile content are getting more sophisticated 03 / TECHNOLOGY E / The profile of the average gamer is changing; wider age ranges and more women 04 / ADVERTISING 05 / LANDSCAPE 02 / Introduction 04 / The Advertising 06 / Consumer Behaviour 06 / CONSUMERS The relationship between advertisers and video The advent of broadband connectivity for Evidence is mounting to suggest that gaming is games has evolved nearly as much as game play computer systems and consoles has ushered in taking significant chunks out of television viewing 07 / MARKETING itself. PricewaterhouseCoopers recently forecast the next generation of game-specific advertising. time. Usage patterns are also expanding - gamers that the worldwide video game market would Dynamic networks now have the ability to deliver are gaming more, and for larger chunks of time. 08 / become a $46bn industry by 2010. Gaming is user-targeted ads in real time. New technologies The numbers are also skewing to a much older, BUSINESS coming of age as a formidable player alongside in Flash and Shockwave have re-energised more affluent, and more gender-neutral 09 / television, music and film for the timeshare and advergames. Social worlds such as Second Life demographic. Part of that is due to the massive DISRUPTION entertainment dollar spend of the average 18-34 and Habbo Hotel have the potential to provide success of Nintendo's Wii, which combined an 10 / year-old. richer, more meaningful brand interactions. inclusive marketing campaign with a revolutionary FACT gameplay interface. 11 / 03 / The Technology 05 / The Landscape FUTURE Gaming exists across many different devices, and Dynamic in-game networks such as Massive and 07 / Marketing & Promotion 12 / changes accordingly. The dominant platforms are IGA currently dominate the market. They operate Product placement is one of the most desirable CONCLUSION computers, consoles, mobile phones and handheld as virtual media planners of sorts, and act as a forms of integration, but few marketers have cracked 13 / devices. Computers are still the most dominant facilitator and service delivery solution for the case so far. Brands are flocking to Second Life, REFERENCES platform, but seventh generation consoles such as developers and brands. Dynamic in-game banners where the marketing possibilities are endless; the Nintendo Wii, Microsoft Xbox 360 and Sony and video ads are currently the most common form entertainment, autos, banking services, clothing PlayStation 3 have captured the imaginations of of advertising; more integrated forms of product lines all have a voice when life is the name of the gamers worldwide. Handheld units such as placement are set to define the future. game. The question of effectiveness is dominating Nintendo's DS and Sony's PSP are also factors. current industry discourse - are players too immersed in what they're doing to get the message?

the gaming industry / executive summary / p.03 CHAPTERS / 01 / SUMMARY 02 / INTRO 03 / TECHNOLOGY 04 / ADVERTISING 05 / LANDSCAPE 06 / CONSUMERS 07 / MARKETING 08 / Disruption the art of misdirection. The merit of social worlds 11 / Contagious Point of View 08 / Is there a backlash ahead? Gamers only relative to brand and agency investment in them Early adopter brands look set to reap long-term BUSINESS appreciate ads that increase the realism and/or continues to be an industry hot button. benefits from involvement in this area. The trend of 09 / reward them somehow. Gamers' strong and vocal branded utility - the provision of services and DISRUPTION online presence means that an ad that's too 'loud' 10 / The Future View experiences as opposed to marketing messages - 10 / or delivered in the wrong context can have a As the Internet, television and consoles converge, is thrown into sharp relief in the gaming arena. FACT damning and lasting effect. Social communities developers will begin 'the battle for the living room' Respect for the environment and the gamers 11 / such as Second Life may eventually resent an in earnest. Gaming fidelity will improve as always, themselves is key for successful innovation. FUTURE influx of brand involvement; virtual citizen anarchy but the real innovators will focus on the interface. 12 / groups have already been launched as counter Games and gaming IPs will become even more 12 / References, Links, Jargon CONCLUSION measures to excessive branding. inextricably entwined with Hollywood and the Links to references, games, companies and a 13 / mainstream media. In the face of Microsoft's breakdown of jargon. REFERENCES 09 / Fact Or Fantasy purchase of in-game advertising specialists New technology and the public's unquenchable Massive, further synergies between game networks thirst for 'casual' games have the potential to give and developers loom. the advergame genre a much-needed facelift. Many believe that the Second Life phenomenon is a house of cards constructed by PR flaks skilled in

the gaming industry / index / p.04 INDEX / THE GAMING INDUSTRY CHAPTERS / 01 / pages 02-03 08 / pages 37-42 01 / SUMMARY EXECUTIVE SUMMARY THE BUSINESS ANGLE 02 / INTRO 02 / pages 05-06 09 / pages 43-44 03 / INTRODUCTION DISRUPTION & RESISTANCE TO CHANGE TECHNOLOGY 04 / 03 / pages 07-10 10 / page 45 ADVERTISING THE TECHNOLOGY FACT OR FANTASY 05 / LANDSCAPE 06 / 04 / pages 11-22 11 / page 46-47 CONSUMERS THE ADVERTISING THE FUTURE VIEW 07 / MARKETING 05 / pages 23-25 12 / page 48 08 / BUSINESS THE LANDSCAPE CONCLUSION 09 / DISRUPTION 06 / pages 26-31 13 / pages 49-51 10 / CONSUMER BEHAVIOUR REFERENCES / LINKS / JARGON FACT 11 / FUTURE 07 / pages 32-36 12 / MARKETING & PROMOTION CONCLUSION 13 / REFERENCES

the gaming industry / introduction / p.05 02 / pages 05-06 IN THE BEGINNING... CHAPTERS / …there was nothing but black, white, and a single brand 01 / SUMMARY In 1976, a game developer called Midway released a standup arcade game titled, endearingly, Datsun 280 Zzzap. Outside of the 02 / INTRO friendly liberties it took with the spell check function, there was little on the surface to distinguish Datsun 280 Zzzap from its counterparts. An 03 / TECHNOLOGY iteration of the 1976 first person racer Night Driver, it offered a monochromatic graphical interface, clunky gameplay and little-to-no 04 / ADVERTISING replay value. Although it sank out of gamers' consciousness with a quickness, it has since achieved a posthumous notoriety in the world 05 / of advertising. By virtue of its title, the function of a simple contra deal LANDSCAPE with the now-defunct auto brand, Datsun 280 Zzzap is believed to be 06 / one of the earliest examples of advertisers and video game CONSUMERS developers working together. 07 / MARKETING 30 years on, the relationship between both entities has evolved nearly as much as the gameplay itself. PricewaterhouseCoopers 08 / BUSINESS recently forecasted that the worldwide video game market would become a $46bn industry by 2010 (up significantly from 2005's 09 / DISRUPTION reported total of $27bn). Another study from ABI Research had an even more optimistic outlook, predicting the overall market would 10 / FACT balloon to just under $65.9bn by 2011. On its own, the American market posted a robust growth in 2006, accounting for $12.5bn in 11 / FUTURE sales, a $2bn increase over the year prior. Meanwhile, software sales in the UK totaled $2.7bn in 2006, a number likely to increase 12 / dramatically now that the Xbox 360, Nintendo Wii and PlayStation 3 CONCLUSION have entered the market in 2007. So far, the early sales results from 13 / 2007 point to another rapid increase in growth. According to the NPD REFERENCES Group, retail sales of hardware and software increased by 78% year- on-year from January 2007 to January 2006, where it accounted for an impressive $1.25bn. Leading the pack among consoles was the Wii, which, despite shortages, still sold 436,000 units. Rounding out the top four sellers in America for January 2007 was the PlayStation 2 (299,000), the Xbox 360 (294,000) and the PlayStation 3 (244,000).

the gaming industry / introduction / p.06 Because of these numbers as well as the gaming demographic's gradual shift towards an older, more sophisticated and increasingly gender-neutral player base, marketers are beginning to cotton on. Fuelled by CHAPTERS / rapid advancements in the dynamic advertising spheres, the bullish computer game market, and the 01 / online integration of 7th generation consoles such as SUMMARY Microsoft's Xbox 360, Nintendo's Wii and Sony's 02 / PlayStation 3, not to mention a sudden awareness of INTRO gaming as a formidable player alongside television, 03 / music and film for the timeshare and entertainment TECHNOLOGY dollar spend of the average 18-34 year old, advertisers 04 / are officially in full-on gold rush mode. And while most ADVERTISING brands are still behind the curve in trying to find clever, 05 / valuable and seamless ways to integrate themselves LANDSCAPE with the gaming experience, they're catching up quickly. Night Driver / 06 / Between in-game advertising, advergames, product CONSUMERS placement, mobile games, underwritten titles and other 07 / creative integration approaches, marketers have their MARKETING eyes and pocketbooks turned towards the gaming 08 / industry in a way they didn't as recently as two years 280-ZZZAP / BUSINESS ago. So: where is all this all headed? How is the market evolving? What types of games lend themselves best to 09 / DISRUPTION advertising? What kind of advertising lends itself best to games? What is the marketer's ultimate role in the 10 / FACT gaming sphere? And what does the future hold for game developers, advertisers and brands? 11 / FUTURE In the following pages, Contagious will attempt to 12 / answer those questions. But, before we go any further, CONCLUSION let's first outline the most popular gaming platforms and 13 / the most common ways in which advertising and video REFERENCES games have converged. link / www.playstation.com

the gaming industry / what is the technology? / p.07 03 / pages 07-10 WHAT IS THE TECHNOLOGY? CHAPTERS / 03.01 / The Major Platforms 01 / Personal Computers SUMMARY Traditional video game consoles may get most of the attention, but 02 / INTRO don't let the smokescreen fool you: personal computers are still, by far and away, the single most dominant platform in the gaming industry. 03 / TECHNOLOGY While their sheer ubiquity makes it difficult to estimate exactly how many people are using computers for gaming purposes on a global 04 / scale, VP sales for the in-game advertising network Double Fusion ADVERTISING Julie Shumaker says that there were '250m global-connected PC 05 / gamers' in 2006, a number that still tops the combined current global LANDSCAPE sales of the big six consoles: Sony's PlayStation 2 and PlayStation 3; 06 / Microsoft's Xbox and Xbox 360; and Nintendo's Gamecube and Wii. CONSUMERS Despite the larger user base, however, the overall sales of computer 07 / games pale in comparison to those for consoles. In fact, according to MARKETING a report released by the Entertainment Software Association (ESA), 08 / the total dollar sales of computer games in America decreased from BUSINESS $1.1bn dollars in 2004 to $953m dollars in 2005. 09 / DISRUPTION Consoles 10 / While 2006 saw the Xbox 360, PlayStation 3 and Nintendo Wii - FACT known collectively as 'seventh generation consoles' - finally unveiled 11 / to gamers, their predecessors still account for the majority of the FUTURE world's console penetration. Leading the pack is Sony's PlayStation 12 / 2, which, as of last September, had shipped 115m pieces worldwide CONCLUSION (roughly 45m of those in the U.S. and 42m in Europe) and, thanks to 13 / aggressive new price cuts, shows no signs of slowing down. REFERENCES Next up is Microsoft's Xbox with global sales just under 25m, followed by Nintendo's Gamecube with around 21m.

the gaming industry / what is the technology? / p.08 03.02 / Console hardware sales Console hardware sales / Although their staggered release times make them Company Platform Released Sales (Millions) difficult to compare, the quest for seventh generation supremacy appears at this point to be a Sony PlayStation 2 2000 115.36 CHAPTERS / two horse race. The earliest out of the gate (and, Sony PlayStation 1995 102.49 01 / consequently, the current sales leader) is the Xbox SUMMARY 360, which, according to figures released by Nintendo Nintendo Entertainment System 1985 61.9 Microsoft in January, has sold 10.4m consoles Nintendo Super Nintendo Entertainment System 1991 49.1 02 / INTRO worldwide. Next up is Nintendo's Wii, which has Nintendo Nintendo 64 1996 32.93 so far logged roughly 4.5m in global sales and 03 / Sega Sega Mega Drive/Sega Genesis 1988 29 TECHNOLOGY maintains huge consumer demand in the face of worldwide scarcity. Meanwhile, Sony's PlayStation Microsoft Xbox 2001 24 04 / 3 has so far been unable to recreate the levels of Nintendo GameCube 2001 21.52 ADVERTISING consumer demand that defined its predecessor. Sega Sega Master System 1986 13 05 / Hamstrung by a long string of manufacturing Microsoft Xbox 360 2005 10.4 LANDSCAPE delays, the lack of a killer, must-have title, 06 / Sega Dreamcast 1998 8.2 mediocre reviews and an exorbitant price tag (the CONSUMERS low-end version sells in America for a list price of Sega Mega CD 1991 6 07 / $600US), the PS3 has so far only managed to sell Nintendo Wii 2006 4.4 MARKETING about 1.4m units worldwide. In terms of Sega Saturn 1994 1.4 08 / technological specifications, the PS3 is easily the BUSINESS Sony PlayStation 3 2006 1.26 most advanced of the trio, but pundits now 09 / suggest that Sony's preoccupation with graphics DISRUPTION engineers, processor power and other technological 10 / bonuses (such as the inclusion of a pricy Blu-Ray FACT high definition DVD optical drive) have had the 11 / adverse effect of pricing it out of the range of the Handheld device sales / FUTURE average gamer. With this strategy, Sony appears 12 / to have grossly misread the market; as the Company Platform Released Sales (Millions) CONCLUSION breakout success of the Wii is demonstrating, gamers still prize the overall gameplay experience Nintendo Game Boy Advance 2001 78.86m 13 / REFERENCES (ie. the fun factor) over visual and audio fidelity. The Nintendo Game Boy 1989 69.42m Wii is an organic extension of Nintendo's Nintendo Game Boy Color 1998 49.54m philosophy to appeal to lapsed and non-gamers. Nintendo Nintendo DS 2004 35.61m Design plays a big part in this. Where the Nintendo DS handheld console echoed the original orange Sony PlayStation Portable 2005 17.03m Donkey Kong dual screen that makes anyone over Sega Sega Game Gear 1991 8.65m

the gaming industry /what is the technology? / p.09 30 all misty-eyed with nostalgia, the Wii sports a limitations in this area could hinder its continuing futuristic straightforward design. Simplicity is key. adoption. In order for the console to thrive, As Nicola Espindola, account director at Leo Nintendo and third party games publishers need Burnett in London, the agency that handles the to persist in creating innovative titles and inventive CHAPTERS / above-the-line account points out: 'You don't have online services.' to understand how the controller works; anyone 01 / can just pick it up and play.' The graphics don't 03.03 / Mobile/Handheld SUMMARY pretend to come close to those on an Xbox 360, 02 / The resurgence of handheld gaming platforms while the low price tag suggests family fun or an INTRO such as the Nintendo DS/DS Lite and the Sony additional console for a serious gamer. PSP, (not to mention the iPod's coming out as a 03 / TECHNOLOGY second-tier gaming utility) has combined with the Targeting strong-as-ever 3G mobile phone market to give 04 / Saneel Radia, vice president and group girector ADVERTISING handheld gaming its rosiest outlook to date. Since at Play/Denuo, LA, believes targeting in this area is its release in 2004, Nintendo's DS and DS Lite 05 / simpler than it looks. 'In terms of which platform to LANDSCAPE have sold over 34m units worldwide. In that time, start from, gaming is surprisingly segmented in Sony's pricier PSP has also performed decently, 06 / terms of demographics,' Radia told Contagious. CONSUMERS selling close to 25m units worldwide. 'Just knowing who your target consumer is will 07 / drive which platforms are most relevant right off The mobile sphere currently boasts 1.94bn MARKETING the bat. Clearly, a women 35+ is more likely to be users worldwide, carriers and developers are 08 / playing an online casual game than a console heralding 3G networks as the shot in the arm the BUSINESS game and a teen is more likely to be using a mobile gaming industry requires. While network handheld device than their older counterparts.' uptake is inevitable, 3G is still years away from 09 / DISRUPTION becoming the de facto mobile phone protocol. It's important to remember that variables such as According to a study released by Analysys 10 / free firmware fixes, price drops and desirable new FACT Research, 3G penetration is currently at 40% in platform-specific games mean that the next- mobile phone crazy Japan and South Korea, while 11 / generation console war is far from over. In other FUTURE the Forrester Group predicts that the UK will finish words: this one's a marathon, not a race. Chris 2007 with a penetration rate just under 20%. 12 / Khouri, Media and Broadcasting Analyst at CONCLUSION Nonetheless, research groups forecast huge Datamonitor, considers that the Wii's long term gains in 3G penetration rates over the next few 13 / success is not assured. 'There is strong years; last June, ZDNet Research predicted 3G REFERENCES competition from Sony and Microsoft (particularly would enjoy a 60% market share in Western Wii Sports / as price points drop) and the Wii's initial hype Europe by 2010, while mobile research company might fall by the wayside,' he commented. NSR says there will be 1.2billion global 3G users 'Consumers are expected to increasingly use by the same time. video games consoles as portals to access, view and store all forms of media content and the Wii's

the gaming industry / soundbites / p.10 GAMING / SOUNDBITES CHAPTERS / 01 / SUMMARY 'Connectivity takes this industry from a one-time, once ‘Users are using social virtual worlds in very different a year relationship to a 24/7, 365 day relationship with ways than they are using gaming worlds. Gaming 02 / INTRO a consumer, and brings an opportunity for a marketer to worlds can be an escape where you concentrate on participate in a way that they get access to the leveling up. For its users, social virtual worlds are all 03 / consumers they want access to.' about extending their own personality … I've found that TECHNOLOGY Julie Shumaker / VP Sales / Double Fusion lots of users, especially the younger ones, are really 04 / savvy about associating themselves with brands that ADVERTISING 'Videos games are the fastest growing and largest of they identify with in order to communicate something 05 / any entertainment category. It's bigger than film, books, about themselves or at least what they aspire to be. You LANDSCAPE and music, and it's growing at 20-25% compound per might see kids in There or Second Life or Habbo Hotel 06 / annum.' running around with brands in their screen names or CONSUMERS Mitch Davis / former CEO and founder / branded items that convey something about who they 07 / Massive Incorporated aspire to be.' MARKETING Betsy Book / founder of virtualworldsreview.com and 'Gamers aren't one group anymore. Gamers will soon product manager / Makena 08 / BUSINESS become as diverse as the movie-going population and the television-watching population.' 'We're seeing a lot of user-created brands. These 09 / DISRUPTION Sam Bergen / Digital and Emerging Media Strategist / worlds have their own life and the advertising that takes Saatchi and Saatchi, LA place inside them has to account for the fact that this is 10 / FACT not the real world, this is a world in which their 'I think the number one mistake marketers are making is competitors are not the other big retail apparel stores 11 / FUTURE not seeing the individual values of the various in-game but rather some guy who makes shirts that are really advertising opportunities.' popular, and that's a different kid of strategy for a 12 / Julie Shumaker / VP Sales / Double Fusion company to think about.' CONCLUSION Ian Bogost / Georgia Institute of Technology assistant 13 / REFERENCES professor and ad-gaming pundit

the gaming industry / the advertising / p.11 04 / pages 11-22 THE ADVERTISING 04.01 / B.O. vs A.O. (Before Online vs. After Online) CHAPTERS / It's probably most helpful to think about the history of 01 / SUMMARY advertising and video games in two distinct parts: pre- and post- online playability. In the pre- era, advertising in 02 / video games remained static by necessity, and evolved INTRO from models that saw brands such as Purina and 03 / Johnson & Johnson releasing branded games as TECHNOLOGY promotional rewards in the early 80s to the eventual 04 / purchase of ad space within existing games themselves, ADVERTISING such as adidas, Nokia, Coca-Cola, Mastercard and 05 / Gillette did across a variety of EA-branded sports titles LANDSCAPE in the mid-90s. These partnerships would take the form 06 / of ads in sports arenas, such as adidas and Panasonic's CONSUMERS field-level ads in FIFA International Soccer 1994, or 07 / rinkside tags for MasterCard and Coke in the hockey MARKETING title NHL’ 98. While there are other examples of creative 08 / synergies between brands and games from this period, BUSINESS the overwhelming majority of pre-era deals were 09 / relatively unsophisticated from a media buying DISRUPTION perspective, the virtual equivalents of simple sponsorship 10 / contracts and billboard purchases. FACT Although personal computers and dialup access go 11 / back to the late 70s, mass market computer games FUTURE didn't fully embrace the communal properties of the 12 / Internet until the broadband boom of the early CONCLUSION noughties, at which point designers facilitated a sea 13 / change away from single-player offline titles towards REFERENCES games that emphasised a multiplayer, online experience. Led by PC games like World Of Warcraft and console titles like Halo and Gears Of War, multiplayer online games have quickly become the standard for serious gamers. Paired with the decision by hardware developers to embrace online access as a fundamental

the gaming industry / the advertising / p.12 part of gameplay, this massive shift has opened the door change those out in real time so you saw an ad for for newer, far more sophisticated kinds of advertising. Chrysler one day and for Pepsi the next?' So that was 'We're a 25-year-old industry that has spent pretty the idea. I immediately jumped on the Internet to see much 22 years thinking about game consumers in one who was doing it - this was back in 2002 - and, to my way,' says Shumaker. 'Connectivity takes this industry surprise, nobody was.' What a difference five years CHAPTERS / from a one-time, once a year relationship to a 24/7, 365 makes. Emboldened by the positive forecasts, and 01 / day relationship with a consumer, and brings an looking to leverage their software catalogue against a SUMMARY opportunity for a marketer to participate in a way that proven gaming network, Microsoft purchased Massive 02 / they get access to the consumers they want access to.' for somewhere purportedly between $200-400mn last INTRO year. Let's look at some of the most common types of 03 / Second Life / adidas / TECHNOLOGY revenue models for video games and advertising: Caution Advised link / www.secondlife.com 04 / But marketers shouldn't interpret this rosy outlook as ADVERTISING 04.02 / Revenue Models permission to run rampant. Gamers are still extremely 05 / In-game Advertising protective of their gaming environments, and only LANDSCAPE Thanks to its generous trend outlooks, in-game tolerate ads if they're delivered within the appropriate 06 / advertising dominates the video game and advertising context. Saneel Radia of Play comments, 'How a brand CONSUMERS approaches the gaming industry should be directly tied landscape. Last summer, American research 07 / conglomerate the Yankee Group made waves by to their objectives. Some brands simply want an MARKETING additional medium that will help them get in front of projecting the in-game ad market would quintuple in 08 / value to $732m dollars by the end of 2010, while IGA target consumers. That's easy enough these days as BUSINESS networks forecast the market would be worth $1.2bn most game publishers have a team dedicated to 09 / by the same time. In a keynote address delivered during working with brands for integration, or are represented DISRUPTION the Advertising in Games conference in New York last by a third party, such as Double Fusion or IGA. On the Jeep Games / Mountain Madness / 10 / year, Massive Incorporated former CEO and founder other end of the spectrum are those brands that are link / www.jeep.com/games FACT Mitch Davis revealed an even bolder outlook, predicting leveraging games as a communication platform. It's 11 / the overall market would tally $1.8bn by the end of the these brands that tend to approach the industry in the FUTURE decade. Regardless of which view (and whose market most broad-based way. They're looking at the game definition) you subscribe to, massive growth is on the experience well beyond when consumers have a 12 / CONCLUSION horizon. All this upside is for an industry that, according controller (or keyboard) in hand. These are the brands to Davis, didn't even exist five years ago. 'The original that understand that the gaming experience includes 13 / REFERENCES idea for the business actually came when I was playing opportunities well beyond in-game integration. The Grand Theft Auto on a connected console,' he said to wisest of the group are even looking to leverage these us, just a month before leaving Massive to start his own AAA content creators for proprietary brand business. 'There are fake ads in that game; I had experiences.' experience in the media industry and software The general rule for successful integration is as development, and thought, 'Wow, what if we could Wrigly’s Candystand / Dodgeball / follows: in-game advertising should either enhance link / www.candystand.com

the gaming industry / the advertising / p.13 gameplay by adding to the overall realism or somehow deployment strategies. 'One thing that has become reward the gamer (via free bonuses or subsidised more sophisticated is that brands have started to put subscription costs). Anything else has the potential to their games in places where people find games rather backfire. We'll explore those positive and negative than on their websites,' says Georgia Institute of CHAPTERS / uptake factors more in-depth later in the report. Technology assistant professor and ad-gaming pundit Ian Bogost. 'Yahoo Games has this Jeep games 01 / 04.03 / Advergaming channel, for example, that's a very different strategy than SUMMARY In the loosest sense of the word, 'advergame' we saw in the '90s.' Similarly, one of the largest online 02 / encompasses any game experience that is underwritten gaming portals on the Internet is the Wrigley-owned INTRO or initiated by a brand or product. Under the more and branded www.candystand.com, which, with over 03 / modern definition, 'advergame' represents a branded, 80 titles, plays like traditional advergaming on designer Tetris / TECHNOLOGY link / www.tetris.com browser-based game programmed in Shockwave or steroids. 04 / Flash. At their best, these games scratch the 'casual' (as ADVERTISING The term advergaming, as with everything in the new opposed to 'hardcore') gaming itch by virtue of their marketing world, can be applied to a broad range of 05 / simplicity and re-playability. Although traditionally the LANDSCAPE experiences. US stationery retailer Office Max scored a most maligned of the major formats, no doubt as a result hit in December 2006 with a viral campaign entitled 'Elf 06 / of the sheer glut of inferior examples plastered all over Yourself'. Users were encouraged to upload a picture of CONSUMERS the Internet, advergames are nonetheless an increasingly their faces to the site, which was then superimposed 07 / popular component of the gaming marketplace. In a onto a manic dancing elf. Crucially, the elves could then MARKETING separate report issued at the very end of 2004, The forward their Yuletide message on to friends. The 08 / Yankee Group predicted that the then $79m industry campaign received over 36m hits in just five weeks, BUSINESS would become worth over a quarter of a billion dollars by which bested the previous accepted benchmark for 2008. 09 / viral success (Crispin Porter's Subservient Chicken) by DISRUPTION Bejeweled / While many brands and developers have traditionally over 20m. It also contributed to a 20% increase in 10 / been guilty of lazily repackaging known games such as holiday traffic to Office Max's website. FACT Tetris and Bejewelled in branded skins, a new 11 / generation of ad-friendly, game developers are pushing 04.04 / Social Worlds/MMORPGs FUTURE the advergaming model forward. Led by companies like MMORPG stands for 'massively multiplayer online 12 / Boston's Barbarian Group, which has created roleplaying game'. While it's generally used as a catch- CONCLUSION compelling web games for brands like HP, Comcast all for any computer game that relies on a massive 13 / and Red Bull, and Ottawa's Fuel Industries, which has community of players to help drive the action, the most REFERENCES done the same for 20th Century Fox Home interesting and relevant sub-genre as it pertains to Entertainment, Sprite and Mazda, the advergame has brand involvement is the one known as 'social worlds'. slowly become relevant again. Not only have advances Best exemplified by titles like Sims Online, Habbo Hotel in Flash and Shockwave technologies enabled and, most notoriously, Second Life, social worlds house developers to do increasingly complicated work, but self-contained virtual societies and economies that marketers are suddenly revisiting traditional advergame allow users to interact with each other, as well as trade Need for Speed Underground 2 / link / www.nfs.ea.com

the gaming industry / the advertising / p.14 in goods and services. Because the cultivation of an well. Large global network agencies Leo Burnett and online persona and the accumulation of cultural capital BBH embraced the technology by establishing their play a significant function in these environments, social own Second Life digital outposts in 2006. Elsewhere, worlds are not only well suited to brand intervention - October saw Crayon - a Second Life-based 'new CHAPTERS / they practically demand it. Brands like adidas, American marketing' company founded by author-blogger Apparel, Dell and Pontiac are among the many to have Joseph Jaffe - open its virtual doors to the public. While 01 / established some sort of online presence in Second controversy rages over the rate at which Second Life's SUMMARY Life over the last two years. Meanwhile, other meaningful user base is actually increasing (more on 02 / companies have utilised Second Life's unique that later), environments such as these offer brands and INTRO environment in decidedly non-traditional ways; last institutions arguably the most room to evolve from a 03 / year, hotel conglomerate Starwood (owner of the technological and creative standpoint. TECHNOLOGY Westin, Sheraton and W chains) used the venue as a 04 / platform to introduce users to a new line of hotels, while 04.05 / Politics in Second Life ADVERTISING institutions like the Harvard Law School, the University The nature of social networking has made it a potent 05 / of Florida and Pepperdine University have seized upon tool for political electioneering, with many candidates LANDSCAPE SL as the ideal platform from which to offer distance turning to MySpace and YouTube to put their point 06 / education courses. across and connect with new followers. Second Life is CONSUMERS no exception, yet it is not without its pitfalls. Democrat Because Second Life has a real dollar to 'Linden dollar' 07 / presidential candidate John Edwards' presence in exchange rate, its fledgling economy has thrown up MARKETING Second Life, whilst being popular amongst the largely some extraordinary statistics. Since January '07, around 08 / left-wing liberal community, was defaced by a group of $1.8m real dollars have been spent daily in-world, and BUSINESS Second Lifers bearing 'Bush '08' tags in March 2007. in December 2006, Second Life's first dollar millionaire 09 / was spawned off the back of some shrewd property France's presidential candidate Ségolène Royal has DISRUPTION development. Second Life can thus offer an actual also opened an office in Second Life, where visitors can 10 / revenue stream for brands integrating products into the pick up badges for their avatars marked 'Ségolène FACT world. For example, Reebok's SL presence allows Royal for France'. The office drew a stream of visitors in 11 / users to design their own shoe, and then click straight its first week, chatting about issues such as France's FUTURE through to the Reebok website where the design is position in the European Union. 12 / ready and waiting for them to purchase. However, there France's National Front also has a presence in the CONCLUSION has been considerable negativity from the Second Life online world. Cyril Parisi, who manages the party's 13 / community towards ill-thought brand presence in this Second Life presence claims: 'In cyberspace we can REFERENCES area - for example, American Apparel's store can be make ourselves heard, which isn't the case in the official difficult to access via the front door and is often media.' But, as in the real world, the National Front's Second Life Agitators / understaffed, and Nissan was criticised for giving cars movements have drawn protests. A group called the away for free - a mistake which could upset the balance 'Second Life Left Unity' have moved in next to the of an fledgling economy. French National Front's office, vowing to carry out Not surprisingly, the ad world is getting involved as protests there until the ultra-right wingers move out or

the gaming industry / the advertising / p.15 are ejected. They wrote on their blog: 'Wherever MMORPG to watch fascists are, we will ensure they get no peace.' Despite The Lord of The Rings MMORPG game will be released fears, it appears that freedom of speech on the Internet by Turbine, Inc in April 2007. Given the existing is alive and well. enthusiasm for the original books and subsequent films, CHAPTERS / http://slleftunity.blogspot.com plus the dedicated community already surrounding the LOTR, it's fair to say that the game could attract 01 / 04.06 / World of Warcraft SUMMARY audiences of millions. Talking to The Guardian Other MMORPGs include the hugely popular World of newspaper's games blog in March 2007, Turbine’s 02 / INTRO Warcraft, a subscription-based fantasy game boasting executive producer Jeffrey Steefel said: 'what Blizzard something in the region of 8.5m players. Through the has managed to do [with WOW] is hugely expand the 03 / trade of various objects and the completion of missions, market from something that was niche to mainstream TECHNOLOGY The Passenger / players can build up their character's strengths and entertainment. It has changed the entire landscape link / www.the-passenger.com 04 / undertake ever-more complex tasks. The game is which means now is the perfect time to come out with a ADVERTISING published by Blizzard Entertainment, and financed product like Lord of the Rings Online. After all, there's 05 / through cheap subscription packages, at around $15 barely a person on the planet who hasn't heard of Lord LANDSCAPE (£8) per month. Profits from World of Warcraft are of the Rings right? It also gives us a chance to reach out 06 / frequently cited as saving parent company Vivendi from to a wider space, not just the WoW players, but RPG CONSUMERS a profit plunge in 2000. fans generally who have always wanted to experience 07 / this world.' MARKETING WOW's first expansion pack - World of Warcraft: The Burning Crusade - was launched in January 2007. It hit The nature of World of Warcraft was satirised to great 08 / 2.4m sales in its first 24 hours of availability, and effect in series 10 of the popular animated series South BUSINESS Blizzard claims it has 'established the new one-month Park, in an episode entitled 'Make Love Not Warcraft.' 09 / record for PC game sales,' selling around 3.5m copies The mechanics of the WOW were also spoofed in this DISRUPTION in total. It's worth pointing out that if WOW were a video for eco-brand Fair Trade. 10 / nation it would be the 91st most populous nation on www.youtube.com/watch?v=MvcGdJ-09v4 FACT earth, just after Rwanda. 11 / 04.07 / What impact have MMOs and social worlds FUTURE WOW, as with many other MMORPGS, is fantasy- had on gaming? based. Other games such as Roma Victor are historical 12 / Much like user-generated content has fundamentally CONCLUSION in orientation. This obviously poses problems for altered the way marketers think about advertising, so advertisers, as any kind of in-game integration would be 13 / have MMORPGs changed the way developers think REFERENCES incongruous and, no doubt, emphatically rejected. about games. Connectivity and mass-playability have However, brands such as Coca-Cola in Japan have quickly become standard in the software worlds. Very managed to achieve integration with games such as few current high-profile titles, whether console or PC- Final Fantasy by using the characters to decorate based, ship without some form of online-playability packaging, and giving players the chance to win function. Granted, some of today's most popular titles World of Warcraft / merchandising and tickets to gaming events. link / www.worldofwarcraft.com might not lend themselves particularly well to

the gaming industry / the advertising / p.16 advertising, but it's a general development that Bogost gaming market will near the $2bn mark by 2009, while says bodes well for future marketers. 'MMOs -- Juniper Research contends the worldwide market will especially now that World of Warcraft has become so be worth $18.5bn by the same time, with 39% of that ridiculously popular - have broken out of their coming from the Asia-Pacifics, 37% from Europe and CHAPTERS / perception as a niche market for weirdos and are now 15% from North America. Of all the mobile games clearly an opportunity to get a wide variety of people,' he accessed in the U.S. in 2005, 53% were user 01 / says. 'I think we'll probably start to see the kinds of new downloaded, 39% pre-existed on the carrier service, SUMMARY MMOs developed and tuned slightly in favour of and 8% were web-based. Downloaders say the largest 02 / advertising.' factors in their purchasing decisions were price, free- INTRO trial period, and graphics - in that order. While 34% of 03 / 04.08 / Mobile Gaming downloaders were between the ages of 13-17 and only TECHNOLOGY Unlike video game consoles and computers, mobile 22% were over 35, an eye-opening 44% were women - 04 / phones are traditionally regarded as a much more more proof that there is no longer one dominant market ADVERTISING personal extension of the user. As a result, advertisers in any particular sphere. 05 / have traditionally trodden more lightly in the mobile LANDSCAPE gaming sphere. Nonetheless, with some of the most 04.09 / Alternate Reality Games 06 / popular mobile games funded by the one-time user Above and beyond these major categories, there are CONSUMERS purchase model, many believe it's simply a matter of other, more niche areas where advertisers and gamers 07 / time before brands make significant inroads into the can intersect. Of all the brand spanking new means of MARKETING market. Where in-game advertising represents an communication currently befuddling marketers, the 08 / additional revenue stream for console titles, many concept of the alternate reality game (ARG) is perhaps BUSINESS companies, such as the San Francisco-based Greystripe, the hardest to compute. Put simply, an ARG is an believe that marketers have a more fundamental role to extended experience through which a large group of 09 / DISRUPTION play in the mobile gaming world. In an interview given to players collaborate to solve clues and reach the game's Gamasutra.com last September, Greystripe CEO conclusion. The gigantic reservoir of intellectual capital 10 / FACT Michael Chang outlined that distinction. 'What is assembled online is known as the hive mind - a revolutionary in mobile is that ad-supported content will seething, yet industrious community held together by a 11 / FUTURE become the total revenue stream for the publisher,' he shared love of problem-solving. said. 'The consumer will never have to pay.' It's that 12 / 42 Entertainment CONCLUSION critical difference that has industry watchdogs such as PocketGamer.co.uk and Game Developers Conference Despite what the press coverage might indicate, only a 13 / very small percentage - about 5%, according to popular '07 heralding the convergence of advertising and REFERENCES mobile games as a major development to watch for in web destination the Alternate Reality Gaming Network 2007. (www.argn.com) - features some kind of branded involvement. To date, most of this activity comes from Statistically, the mobile gaming world poses another the leisure and entertainment sectors, tapping into the massive opportunity for brands. According to research wired community to create a phenomenal buzz for, say, conducted by In-Stat/MDR, the American mobile a videogame launch or a film release. For example, in

the gaming industry / the advertising / p.17 2001, a team at Microsoft Game Studios 04.10 / Case studies on key branded ARGs Consumer Electronics Show in Las Vegas was the attempted an experiment entitled The Beast to first of these real world events, with messages promote the Steven Spielberg film AI: Artificial MICROSOFT VISTA / THE VANISHING POINT projected into the night sky above the Bellagio. Intelligence, headed by a team including Jordan (42 ENTERTAINMENT) Countdown timers, GPS codes and faded CHAPTERS / Weisman and Elan Lee. The Beast began with a Challenge / Enthuse everyone - from the pictures were posted to the website as clues to fictitious credit planted in the pre-release technically aware to the man on the street - about the next stage of the game, which generated 01 / SUMMARY marketing material, and quickly unravelled into a the launch of Microsoft Vista significant buzz for the brand. murder mystery involving the web, phone lines, live 02 / Results / 90,000 people registered for the events, cryptic emails and, crucially, over 3m INTRO contest to win the prizes, and over a million people players worldwide. The team of 'puppet masters' 03 / played along with various elements of the game. eventually formed a company called 42 TECHNOLOGY http://vanishingpointgame.com Entertainment. 04 / ADVERTISING 'The core concept of what we do is in the idea of A&E TELEVISION NETWORKS / THE a distributed narrative - a storytelling process SOPRANOS (CIVIC ENTERTAINMENT GROUP) 05 / LANDSCAPE organic to the web,' explains Weisman. 'Everyone Challenge / Create a national campaign to drive is trained to act online as an archaeologist does - viewership and optimize The Sopranos viewing 06 / CONSUMERS search through the crap for a scrap of info, or a experience for launch on A&E shard of pottery. Eventually, if you find enough link / www.windowsvista.com 07 / Solution / An online game and scavenger hunt, MARKETING shards, you don't only get the pot - you get to understand something about the culture. And if conceived by Civic Entertainment Group New Solution / Vanishing Point' was an experiential 08 / millions of people are helping you look, your York. Players attemped to predict the events of BUSINESS online and offline campaign. The global puzzle understanding is accelerated.' each episode in order to win prizes, including a challenge offered an array of prizes, from Vista 09 / season finale of a massive suitcase containing DISRUPTION Since then, Pasadena-based 42 Entertainment PCs to Xbox 360s to ZUNEs, as well as the $100,000. Participants were challenged to have constructed ARGs for a number of varied prospect of a trip into space to see 'the Ultimate 10 / FACT clients, most recently for the launch of Microsoft Vista'. In December, special puzzle boxes Vista. Other companies working in this area containing a USB key and a note from puzzle 11 / include New York's Campfire, an extension of film mistress Loki (Norse goddess of mischief) were FUTURE producers Chelsea Pictures dedicated to creating sent out to bloggers. Each week, twelve puzzles 12 / were be posted on a bespoke website along with CONCLUSION immersive and interactive brand experiences. Their work to date has included the hugely footage of an unusual real world event. To arrive at 13 / the correct answer, players combined both online REFERENCES successful buzz campaign around hit movie 'The Blair Witch Project', and an ARG for the launch of and real world elements. Audi's A3 entitled 'The Art of the Heist'. Players could either show up at the physical location when a countdown hit zero, or check online to view the recorded footage, encouraging the spirit of collaboration between players. The link / www.hbo.com/sopranos

the gaming industry / the advertising / p.18 collect a total of 36 game pieces from the real Results / The series premiere was the highest Characters from the book also appear periodically world, including roadside billboards, print ads and rated ever for an off-net cable series. High profile on this forum. online ads, each representing a different character media exposure stories ran in the New York Times, Despite initial difficulties in bringing the book to or setting. Pictures of the trophies were registered Chicago Tribune and Hollywood Reporter press, publishing House Running Press sold the CHAPTERS / by sending pictures via mobile phone. amongst others. The game spurred active rights to Cathy's Book to five other countries at Surveillance-style imaging technology designed conversion and extended engagement levels 01 / this year's Bologna Book Fair. Concurrently, it was SUMMARY by Mobot in Massachusetts was programmed to through thousands of posts and hundreds of suggested that Beinggirl.com, P&G's web recognise the pictures. Players strategically thousands of views on the A&E and Slickdeals.net 02 / destination for teenage girls, conduct an editorial arranged selected pieces on a grid-like game message boards, and generated the greatest user INTRO tie-in with various CoverGirl products and an board online, and points were scored when each activity in the history of the aetv.com message 03 / advertising campaign conducted through the character appeared onscreen, with additional boards. TECHNOLOGY Beinggirl website. Direct mailouts via AOL also points scored if characters placed next to each www.suitcaseofcash.com 04 / targeted 3-4m teenagers. other on the grid appear onscreen together. ADVERTISING P&G, COVERGIRL, BEINGGIRL.COM / Results / Prior to publication in October 2006, 05 / CATHY'S BOOK: IF FOUND CALL extensive media coverage generated in excess of LANDSCAPE 120,000 pre-release hardcover orders in the USA 650-266-8233 (42 ENTERTAINMENT) 06 / alone. Foreign rights in countries such as CONSUMERS Challenge / Create the first immersive multimedia Germany, Japan and the UK have also been book experience - and get it published! 07 / snapped up. MARKETING Solution / Writer Sean Stewart teamed up with www.cathysbook.com 08 / Jordan Weisman and illustrator Cathy Brigg, to www.doubletalkwireless.com BUSINESS spin a narrative based around a feisty young 09 / heroine, the eponymous Cathy. Recently dumped DISRUPTION unceremoniously by her mysterious boyfriend ACTIVISION, GUN / LAST CALL POKER Victor, Cathy sets about unravelling his secrets (42 ENTERTAINMENT) 10 / FACT with the help of best friend Emma, recording all Challenge / Promote GUN, a Wild-Western events in her trusty journal. themed videogame, to a gaming audience 11 / FUTURE The book comes with a clear 'evidence pack' of typically drawn to First Person Shoot-Em-Ups various items that Cathy picks up on her search (FPS). 12 / CONCLUSION containing phone numbers and clues to be unravelled. In addition to this, Cathy's doodles 13 / REFERENCES leave hints throughout the text, and amateur sleuths can 'hack' into private voicemail messages to reveal extra information. Cathy and Emma boast their own MySpace pages, and the Cathy's Book site directs users to a bespoke forum designed to link / www.cathysbook.com look like a Chinese phone company website, where they can discuss the story with other fans. link / www.lastcallpoker.com

the gaming industry / the advertising / p.19 Solution / A fusion of avatar culture, real world video game properties and has hinted at the awarded new cars. interaction, product-based incentives and a possibility of a sequel. http://thehunt.volvocars.net/us/thehunt popular online sensation, Last Call Poker wove a www.lastcallpoker.com narrative tracking six stories of American violence MICROSOFT GAME STUDIO, HALO 2 / CHAPTERS / through the ages to the time of the game's release. ILOVEBEES (42 ENTERTAINMENT) The campaign was based around the insight that a Challenge / Create an immersive, interactive 01 / SUMMARY compelling link between the Wild West and the experience for the launch of Halo2, the sequel to present day is poker - now an online phenomenon. hit Xbox game Halo. Attract the attention of the 02 / At lastcallpoker.com, users chose from a variety of mainstream press as well as dedicated Halo fans INTRO characters, and played poker to gain access to and Xbox gamers, bringing non-gamers into 03 / clues and content. TECHNOLOGY contact with the Halo brand Real world integration developed through the 04 / backstory: a wealthy cardplayer, Lionel 'Lucky' Solution / the ilovebees alternate reality game, ADVERTISING based around a radio drama that was broken down Brown set aside a small sum in his will for memorial 05 / poker games in some of his favourite cemeteries. and delivered via ringing payphones. At the centre LANDSCAPE of the campaign was a website run by a Napa Participants in selected cities were invited to Pirates of the Carribean / Valley-based beekeeper, www.ilovebeescom, 06 / attend the memorials and play a round of CONSUMERS link / www.volvocars.us/thehunt which had ostensibly been hacked by someone 'Tombstone Hold'em' with other enthusiasts. 07 / These events used the 'language of the leaving GPS coordinates. The URL for the site was MARKETING tombstone'. Different tombstone shapes seeded at the end of cinematic trailers for Halo2, VOLVO / PIRATES OF THE CARIBBEAN corresponded to different card suits, and the date and small plastic bears containing a scrambled 08 / (HABERMAN & ASSOCIATES, EURO RSCG) BUSINESS of death was used to indicate what the number of version of the URL were sent in the post to keen the card would be. The dealer flipped three cards, Challenge / Raise the profile of Volvo in the 09 / DISRUPTION and participants then searched the cemetery for increasingly competitive worldwide SUV market 10 / the fourth and fifth. Online, they were also Solution / A two month global multi-media FACT encouraged to share their own stories and treasure hunt for an $82,000 car, part of Volvo's 11 / pictures relating to life beyond the grave. sponsorship of Disney's Pirates of the Caribbean: FUTURE Throughout the game, incentives to pre-order Dead Man's Chest. Players picked up maps at GUN were offered, including the chance to their local Volvo dealer, and the top participants 12 / CONCLUSION discover secrets to be unravelled for extra were invited to a remote Caribbean island to weapons and gold. complete the treasure hunt in real time and in real 13 / REFERENCES Results / Over half a million players actively life. The winning participant solved a series of participated during the eight week campaign, and clues to reveal the location of some buried many tens of millions of hands of poker were treasure - a Volvo XC90 SUV. played. Bespoke poker chips designed especially Results / 52,000 people participated in the US for the game became collector's items. Activision alone. Volvo posted webisodes documenting the link / www.ilovebees.com has noted that GUN sold the best among new competition online, and 7 finalists were eventually

the gaming industry / the advertising / p.20 gamers on the Alternate Reality Gaming Network AUDI OF AMERICA / A3 - THE ART OF THE (www.argn.com). HEIST (CAMPFIRE, MCKINNEY SILVER) The story revolved around a futuristic AI entity Challenge / Find a pioneering way to connect from the 26th century known as Melissa, whose with the A3's target consumer, using a fraction of CHAPTERS / the average auto launch budget military starship is thrown back in time and 01 / stranded as part of the hacked code on Solution / Alternate reality gaming meets SUMMARY ilovebees.com. The code, when unravelled, branded content. An elaborate 3-month viral 02 / revealed the GPS coordinates of 50 payphones in campaign (or 'living movie') allowed the audience INTRO the US and in other locations around the world. to participate on various levels, and began in New 03 / When the player gave a secret password to the York with the fictional theft of an Audi A3. TECHNOLOGY voice on the other end of the line (sometimes recorded, sometimes part of the 42 Entertainment Players participated in the adventures of Nisha 04 / team delivering live information), the next Roberts and Ian Yarbrough, specialists in ADVERTISING instalment of the drama was played out. recovering stolen art, as they tracked down digital 05 / clues hidden in Audis across America. The tale of LANDSCAPE Results / ilovebees attracted upwards of 3m designer Virgil Tatum, developing a game based 06 / players. At the 'top tier' of the gaming pyramid, on Roberts, also played into the narrative. Online CONSUMERS 25,000 players rushed out to answer payphones. ads encouraged people to help find the stolen A3, 07 / Active puzzle solvers comprised 750,000 regular and a microsite at stolenA3.com enabled gamers MARKETING contributors to message boards and online to follow the action. Campfire also set up a fictional 08 / research, and around 2m casual players took part site for Roberts and Yarbrough's company at BUSINESS in some element of the game. www.ilovebees.com lastresortretrieval.com, and a site for Tatum at 09 / logged 80m hits, and as well as extensive virgilkingofcode.com. DISRUPTION coverage in games publications, the mainstream press such as the New York Times and CNN The campaign used blogs and wild postings to 10 / documented the community's progress. keep the public updated, and additionally, players FACT created wikis and fan sites, such as 11 / At the launch, Halo 2 made $125m in one day, heist.smirkbox.com to help others keep up. FUTURE smashing records for both gaming and Hollywood 12 / launch weekends. It was described by Microsoft The effort was also supported by TV, print, and CONCLUSION founder Bill Gates as the 'single most successful outdoor media, which contained cryptic entertainment product launch in history'. The 42 references to the Stolen A3 mystery. 13 / REFERENCES Entertainment team won the 2005 Game Results / Over 45m PR impressions were Developers Choice Awards' Innovation Award generated, including articles in Fortune, Business and the International Academy of Digital Arts and Week, Wired and Forbes. There were 2.5m hits on Sciences' Webby Award. audiusa.com in 3 months, the most in Audi's www.ilovebees.com history, and 200,000 visitors in a single day. The narrative engaged 500,000 story participants,

the gaming industry / the advertising / p.21 CHAPTERS / 01 / SUMMARY 02 / INTRO 03 / TECHNOLOGY 04 / ADVERTISING 05 / LANDSCAPE 06 / CONSUMERS generated 10,000 dealer leads, 4,000 test drives tournament. So the gamer wins, the marketer wins content from it, then distributing it via our partners 07 / and ultimately, Audi sold over a thousand of its A3 and of course [the developer] wins, because their at CBS and the NCAA, that allows Pontiac's brand MARKETING model in 90 days, well exceeding expectations. game gets talked about.' to have one of the deepest college basketball 08 / related marketing experiences currently available to 04.09 / Sponsorship / Content ‘In the case of the Pontiac Virtual NCAA Final 4, BUSINESS fans.’ we approached games as a key part of the overall 09 / Pontiac Virtual NCAA Final 4 college basketball experience. Our target audience DISRUPTION Cadillac V-Series There's also the category of off-game promotions wasn’t just gamers - it was all college basketball Arc and Play/Denuo were the architects of a 10 / and sponsorships, which typically involve the fans. By letting gamers generate content in the FACT similar win-win situation last year for Cadillac and integration the online gaming sphere with some form of video highlights and predict upsets in the Microsoft. Tim Irvine, senior vice president at ARC 11 / sort of real life event. In one example, Double tournament, Pontiac owns a unique and highly FUTURE Worldwide, explains the motivation behind the Fusion's Shumaker recalls a Pontiac-branded coveted piece of the college basketball experience campaign. 'Following the success of the \"Cadillac 12 / virtual Final Four NCAA college basketball any fan would find compelling,’ explains Chris CONCLUSION Under 5\" campaign and the launch of the V-Series tournament that was held in conjunction with the Hornberger, the advertising manager at Pontiac. cars, Cadillac wanted to continue to raise 13 / real thing. 'Gamers could play as if they were the ‘Pontiac then uses multiple media channels to REFERENCES awareness with a younger audience, and a tie-in real teams that were playing live that weekend,' distribute this NCAA content to passionate fans with Xbox console gaming emerged as a dramatic she says. 'The beauty there is, it gets Pontiac during key windows of time when they're most way to reach those consumers. Play, the gaming press; it's a promotional activation tool [where] actively craving news about the tournament, but division of Publicis, brokered a relationship with they're getting people to sign up and acquiring a are only finding the same recap and analysis Microsoft. Cadillac became the first advertiser to database of names; and they're getting available through most media. It is this process of sponsor an expansion pack within the Xbox 360 consumers what they want, which is a really cool creating a proprietary brand experience, generating game Project Gotham Racing 3 (PGR3) featuring

the gaming industry / the advertising / p.22 the three V-Series vehicles.' The agencies launched a joint venture that saw them make the entirety of Cadillac's V-Series vehicles available as free links / www.secondlife.com downloadable add-ons for the Xbox 360 game Project www.jeep.com / games CHAPTERS / Gotham Racing 3. According to Irvine, 'the downloadable www.candystand.com expansion pack allows gamers to drive the V-Series www.tetris.com 01 / SUMMARY vehicles within PGR3, experiencing all of the power, www.nfs.ea.com handling and engineering characteristics of the real http://slleftunity.blogspot.com 02 / cars in the Xbox gaming environment. We wanted to www.the-passenger.com INTRO create excitement and buzz, and to shift perceptions of www.worldofwarcraft.com 03 / Cadillac as an old and slow brand commonly www.argn.com TECHNOLOGY associated with your grandfather to a young, fast, www.windowsvista.com 04 / performance-oriented brand. Arc created a microsite http://vanishingpointgame.com ADVERTISING where users can find out about the expansion pack and www.hbo.com/sopranos 05 / the \"Cadillac Elite Player Status\" gamer picture. We www.cathysbook.com LANDSCAPE www.doubletalkwireless.com also wanted the website to demonstrate the youthful 06 / dynamism of the game experience to those who don't www.lastcallpoker.com CONSUMERS have an Xbox live connection or who aren't gamers.' www.volvocars.us/thehunt www.ilovebees.com 07 / The initiative proved extremely successful for Cadillac, www.stolenA3.com MARKETING attracting attention and plaudits for donating free www.virgilkingofcode.com 08 / content for players of a console for which games cost www.heist.smirkbox.com BUSINESS around $60. 'Overall, this was a great opportunity to 09 / partner with Play and Leo Burnett to provide a truly DISRUPTION integrated campaign-and it has been an overwhelming 10 / success,' commented Irvine. 'In the first month, gamers FACT worldwide downloaded the V-Series Expansion Pack 11 / more than 150,000 times and logged 7,600 hours of FUTURE racing with Cadillac V-Series cars. The vseries 12 / collection.com microsite was extremely popular, with CONCLUSION more than 169,000 page views, 58,000 visits and an 13 / average time of 2.27 minutes spent on the website.' REFERENCES He went on to conclude: 'Moreover, free publicity from the game editors' websites reached millions of consumers a month. We gave editors a chance to test- drive real Cadillacs during a major gaming conference, and one of them reported back, \"That's a Cadillac? This car is bad ass!\"

the gaming industry / the lanscape / p.23 05 / pages 23-25 THE LANDSCAPE CHAPTERS / 05.01 / How has advertising evolved along with gaming? Where is it going? 01 / SUMMARY Thanks in no small part to the efforts of new-model game networks such as Massive, Double Fusion and IGA Worldwide, which supply 02 / INTRO the software and services required to syndicate dynamic advertising content within online computer and console gaming environments, 03 / TECHNOLOGY in-game advertising has come a long way in a very short period of time. As far as the beginnings of the industry, even competitors like Double 04 / ADVERTISING Fusion readily acknowledge that a lot of that initial groundwork - whether with respect to client education or determining the business 05 / model - was laid by Mitch Davis and Massive Incorporated. LANDSCAPE 'Everything we heard from talking to big advertisers and agencies like 06 / Coke and McDonalds and OMD and WPP and so forth was that they CONSUMERS wanted to be able to buy in-game advertising the same way they 07 / bought [it on] television and cable and the Internet,' recalls Davis. MARKETING 'They wanted to be able to run campaigns across multiple games to 08 / reach a large audience, to be able to change their creative out in real BUSINESS time and to have effective measurement around it.' 09 / DISRUPTION The more conversations he had, the more Davis discovered that publishers were looking for a turnkey solution. 'They wanted someone 10 / FACT to manage it and to deliver against it,' he explains. 'They're not media companies - they're highly specialised at producing great games.' 11 / With that in mind, Massive undertook the task of building its own FUTURE network, first by developing a deployment infrastructure and then by 12 / populating it with publishers, games and advertisers. Massive's CONCLUSION network currently includes 40 major publishers, including EA, 13 / Activision, Universal Games and Microsoft, and expects to service REFERENCES over 100 major titles this year. On the advertising side, its roster includes blue chip brands such as McDonalds, Coke, Warner Brothers, Chrysler and Unilever. In terms of technological growth, Davis is most excited about the network's increasing sophistication in the realm of custom ad-serving. 'Because we connect to consoles like the 360 and PC games, we have the ability to target and to do very

the gaming industry / the lanscape / p.24 clever things,' he says. 'We can do gay pride advertising, we can run campaigns that are only seen after eight o'clock at night, we can do geo-typing. We ran a campaign across 12 different [European] countries in eight languages to launch the V for Vendetta movie.' CHAPTERS / 05.02 / In-game Advertising 01 / According to Shumaker, who left her role as EA's national director of SUMMARY sales for video game advertising to join Double Fusion, in-game 02 / advertising currently takes three major forms: 2D billboards, video ads INTRO (either pre-rolled between gaming levels or integrated into the 03 / environment) and product placement. 2D billboards and videos ads TECHNOLOGY are dynamic, meaning networks like Massive, Double Fusion and IGA 04 / have the ability to deliver them based on user-specific information, ADVERTISING and thus tailor to its demographic in a way that general television can't. 05 / While it's not considered a dynamic technology, the last category LANDSCAPE (product placement) is one of increasing interest to brands and 06 / developers. IGA Worldwide CEO Justin Townsend explains. 'There's CONSUMERS what you would call situation placement and then there's plot 07 / integration,' he says. '[Situation placement] could be a set of Brembo MARKETING brakes [in a racing game] that allow you to brake harder, a pair of sports shoes that allow you to run faster or Red Bull drink that gives 08 / BUSINESS you energy and allows you to jump higher and achieve the goals within the game. A situation placement is where you're really looking to link / www.vforvendetta.warnerbros.com 09 / DISRUPTION involve a brand within a storyline of a game. So, if your main character frequently has to use his credit cards to make purchases at shops, you 10 / FACT could see Visa integrated into the storyline and the plot of the game.' 11 / Due to its high level of user engagement, product placement is FUTURE naturally viewed by brands as the most desirable form of in-game 12 / advertising, but Shumaker is quick to caution marketers against CONCLUSION pursuing product placement at the cost of everything else. 'Going into 13 / 2007, I think the number one mistake marketers are making is not REFERENCES seeing the individual values of the various in-game advertising opportunities,' she says. 'What we hear a lot now is, \"Well, I want product placement,\" and then [brands] realise that the lead times are longer and that the message is fixed and it has to be a global message, and they go, \"That doesn't really work for me, but I wanted interactivity and a storyline, so I won't buy 2-D billboards.\" 2-D billboards as a stand-alone do have value, they just have a different kind of value.' Sony Billboard /

the gaming industry / soundbites / p.25 GAMING / SOUNDBITES CHAPTERS / 01 / SUMMARY 'I wouldn't say [ads] are a poor investment - I would say 'What is revolutionary in mobile is that ad supported will there are better ways to optimise the ad investment in a become the total revenue stream for the publisher. The 02 / game…' consumer will never have to pay.' INTRO Alison Walkton / head of video game research / Michael Chang / CEO Greystripe 03 / Bunnyfoot TECHNOLOGY 'It's about integrating yourself to the point where it's 04 / 'In gaming, intrusive ads can detract from the organic and seems natural, and there's not much of a ADVERTISING experience and that has a negative effect on the brand question of whether or not you paid for it, it just seems 05 / - but good advertising can make the games more right.' LANDSCAPE realistic - and good approaches can enhance the Sam Bergen / Digital and Emerging Media Strategist / 06 / game.' Saatchi and Saatchi, LA CONSUMERS Simon Andrews / digital chief strategy officer / 07 / Mindshare 'The growth of this medium has really happened MARKETING because technology has enabled gamers. Those who 'There is an entire component to this industry that is used to hit a juncture in their lives and leave gaming no 08 / BUSINESS more akin to partnering with entertainment partners longer need to, because gaming keeps up with them. than technology vendors. I would say that it's those Those consumers didn't used to impact marketing 09 / DISRUPTION custom, bigger opportunities that this agency model budgets and media plans.' fails to deliver against in most cases.' Julie Shumaker / VP Sales / Double Fusion 10 / FACT Saneel Radia / vice president and group director / Play 11 / 'From a technology and intrigue perspective, I'm a huge FUTURE 'This space is exploding , and we're actively expanding our operations to realise the businesses' full potential.' fan of virtual reality and it's something that's kind of neat 12 / Cory Van Arsdale / CEO Massive to look at. Will it manifest where everybody is on CONCLUSION Second Life in the future? I don't think so, but I think 13 / 'The price to make an MMO just keeps skyrocketing. It what you'll see are synthetic places and virtual worlds REFERENCES costs millions and millions a year, and it goes up every evolving into becoming places for people to have year if you want to stay on top technology-wise. Unless experiences online as well as the existing web.' you're in the top three game companies and have huge Brady Gilchrist / EVP Strategy / Fuel Industries budgets, its really difficult for some of these other incredibly creative and talented people to get their games to market.' Terri Perkins / Product Manager / Funcom

the gaming industry / consumer behaviour / p.26 06 / pages 26-31 CONSUMER BEHAVIOUR CHAPTERS / 06.01 / How does gaming stack up to other media? worldwide; the latter, only $3.5bn. 01 / For all that's been written about the decline of the 06.02 / How are gamers and content evolving? SUMMARY music-buying and film-going populations, comparatively If it seems like far more thirtysomethings are carrying little has been written about the industry emerging in 02 / PSPs than did Gameboys, it's for good reason. In the INTRO their place. We'll give you three guesses at the answer, early '90s, gaming was pretty much the sole domain of and here's a big hint: it's not bowling. 'Video games are 03 / your average 14-25 year old male. And although the TECHNOLOGY the fastest growing and largest of any entertainment technologies of those early consoles improved at what category,' says Davis. 'It's bigger than film, books and 04 / seemed like a rapid rate at the time, it ultimately wasn't ADVERTISING music, and it's growing at 20-25% compound per enough to the hold the attention of the more mature annum.' Moreover, says Davis, it's also the largest 05 / gamer. In other words, there was a time when gaming industry in terms of total time expenditure, accounting LANDSCAPE was something people grew out of. That's no longer the for an incredible 15 billion hours of overall user 06 / case. As evidenced by one study after another, the gameplay in 2006. Given the majority of those hours are CONSUMERS average age of the modern day gamer is increasing. The spent by males aged 18-34, marketers looking to target sophistication of current consoles and titles are now 07 / that coveted demographic might want to think twice MARKETING such that gaming is no longer seen as mere child's play. before their next television ad spend. 'The top rated 'The growth of this medium has really happened 08 / network show of 2004 was The Sopranos, which BUSINESS because technology has enabled gamers,' says generated in the region of 160m eyeball-hours,' says Shumaker. 'Those who used to hit a juncture in their 09 / Townsend. 'The top rated game of 2004 was NFL DISRUPTION lives and leave gaming no longer need to, because Madden, and that had over 400m eyeball-hours.' gaming keeps up with them. Those consumers didn't 10 / FACT Tellingly, gamers' usage patterns are also changing. used to impact marketing budgets and media plans.' The busiest hours on the Massive network occur 11 / According a study by the Electronic Software between 4-10pm every night, a period which - not FUTURE Association, the age of the average American gamer in coincidentally - directly corresponds to primetime 12 / 2005 was 33 years old, 25% of the overall gaming television viewing hours. 'Nielsen produced a report in CONCLUSION market was over 50, and 38% of them were female. 2006 that said they're seeing a 12% decrease in the 13 / According to The Observer, 17% of Sony PlayStation amount of time that males aged 18-34 spend watching REFERENCES owners are over 50. Recent research by Comscore has primetime TV,' says Townsend. 'And within the same turned up even more dramatic numbers; a paper target group, there's a 20% increase in the amount of released last September contends the average gamer time spent playing games.' If that's not proof enough, is 41, and that females account for 52% of the overall consider how little old Mario stacks up to George gaming audience. The numbers across the pond are Lucas' Star Wars empire. In all its various iterations and just as encouraging. In December 2006, TNS offshoot, the former is worth a net total of $10.5bn

the gaming industry / consumer behaviour / p.27 Worldpanel Entertainment released a survey showing friends leaderboard for all Live Arcade games vs. an in- the over-45 age group to be the fastest growing game game chat / invitation functionality on casual games demo in the UK, increasing at a rate of 41% over the last sites).' four years. The same survey said that game sales to 06.03 / The Wii Effect CHAPTERS / woman had increased by 67% over the same period, a number even more eye-opening when set against the Because the average title can take anywhere from 2-5 01 / years to develop, it will probably be at least a couple SUMMARY paltry 4% gains on the male side. more years before we see the full implications of those 02 / G Tech numbers from a software perspective, but even still, INTRO there are already numerous examples of gaming How do we explain this boom in the female market? 03 / According to the London-based The Future Laboratory, content conforming to fit its widening demographic. TECHNOLOGY The most compelling recent example of that is the it's the product of technology and gaming companies 04 / finally learning to address a whole new generation of Nintendo Wii. Where Sony and Microsoft have typically ADVERTISING appealed to the tech-obsessed gamer with heady lists Internet and tech-friendly females. This phenomenon, 05 / best exemplified by brain training games like Dr. of technical specifications, Nintendo has always taken a LANDSCAPE Kawashima's Brain Training and Brain Age (both huge slightly different route, emphasising fun, inclusiveness 06 / hits with the female demographic) as well as colourful, and playability above all else. Ty Liotta, a buyer for the CONSUMERS invitingly designed handheld systems (such as the online gadget emporium Thinkgeek.com, says that up Nintendo DS), is what Future Lab refers to as the 'G until the Wii, Nintendo had been hindered by that 07 / MARKETING Tech' trend. reputation. '[They] used to have an image problem because they were seen as makes of kiddie consoles,' 08 / As far as gamer motivation goes, Saneel Radia has BUSINESS he says. 'But now, people who played their original some interesting theories. 'When men aged 18-34 play handhelds are older and don't worry about being cool or 09 / games, they're generally playing for the competition,' he DISRUPTION how badass they shooting something up. People comments. 'They're the guys most likely to use Xbox buying Wiis are older and may have families of their own 10 / Live to crush an opponent online and tell them about it and don't want their kids to play Grand Theft Auto on the FACT while they're doing it. Most females, specifically those PlayStation. Wii gives them something a bit more 11 / over 35, are playing to relieve stress. The last thing they wholesome.' As evidenced by its advertising campaign, FUTURE want is an intense game experience that's going to leave Nintendo planned to take this more inclusive tack from 12 / them feeling worn. Thus, you'll notice they choose day one. 'It's the biggest dread,' jokes Jenny Squires, CONCLUSION games that allow them to socialize or take some time communications director for Nintendo's UK media 13 / between turns.' agency of record, MEC. 'A client saying that their target REFERENCES He goes on to say: 'What this means for content is that audience is everyone from six to 66.' the console gaming experience is clearly moving to one Nintendo's decision to embrace the larger market with a focus on connectivity, while the casual games wasn't their only recent innovation. With the Wii, the experience is moving toward one that's more Japanese gaming giant also broke away from the typical networked. They both have the same underlying IP gaming controller factor form. Rather than a traditional, principles, but the wrapper is much different (e.g., a

the gaming industry / consumer behaviour / p.28 CHAPTERS / 01 / SUMMARY 02 / INTRO 03 / TECHNOLOGY 04 / ADVERTISING 05 / LANDSCAPE two-handed, X-shaped controller with buttons The Casual Gamer 06 / and a directional keypad, the Wii's controller has In addition to seducing users with its new As the Wii ingratiates itself to a completely CONSUMERS the shape of slim remote control, and interfaces different kind of audience, Bergen says it could interface, Townsend says there's another reason 07 / with the console using a complicated infrared the Wii has the potential to further stretch the even transcend its use as a traditional gaming MARKETING triangulation technology. Where other consoles gaming demographic, and that's Nintendo's system. He cites a Google Earth-styled applet 08 / confine the gamer to their couch, the Wii demands dedication to the casual gamer. 'The kind of games called Wii Earth on Nintendo's user network as a BUSINESS a degree of physical activity; depending on the that you see with the PlayStation 3 and the Xbox hint to how things might evolve. 'It's the whole game, players can use different controller 360 require that the gamer commits quite a few globe with all the weather around all the big cities 09 / DISRUPTION gestures to simulate anything from the stab of a hours of time in one sitting to play,' he says. 'If in the world at the same point in time. You can sword to the swing of a golf club. Along with many you're a gamer, you know exactly what I mean - two zoom in and out of it, mouse over each individual 10 / FACT pundits, Sam Bergen, digital and emerging media or three hours can fly by before you know it. The city, click on them, and it will tell you the weather, strategist at Los Angeles' Saatchi & Saatchi, says whole point of the games that the Wii are bringing temperature, and time of day,' he marvels. 'When 11 / FUTURE that this unique, un-videogame interface gives the to market is they're the kinds of games you can pick it's raining, you hear raindrop sounds. The other Wii potential to reach an entirely new up and put down inside of 30 minutes. And what night I sat in front of this huge 110' projection high 12 / demographic. 'I was listening to NPR the other you do there is you attract a whole different kind of definition vision of this thing for like ten minutes just CONCLUSION day, and they were recommending that people buy gamer. Ultimately, that means that as this industry playing with it, and it's not what you think of when 13 / the Wii instead of Trivial Pursuit,' he says. 'They you think of gaming at all. My friend's got this huge REFERENCES evolves over the next three or four years, our target were positioning it as “When you have a dinner and reachable audiences will become much, screen in his bedroom, and he just turns it on in the party, don't pull out Scrabble, pull out the Wii.” I much broader and deeper.' All of this speaks to morning. It plays music in the background, and you totally agree with that and I honestly couldn't be Nintendo's original intent with the Wii: to bring can spend a minute or two checking out weather, more excited about [the development].' gaming 'out of the bedroom and into the living and that's it. But it's become a part of his morning room', and to remake it as a more social and family- ritual, and to me, that's huge. It's a whole new way friendly activity. into the home.'

the gaming industry / consumer behaviour / p.29 The net effect of all this for advertisers could be dynamic things; you can do a full-on game, big 3D stuff, enormous. Current console titles only lend themselves render graphics - you can almost make whatever type of to messages from specific product categories, but a game you can conceive of.' Wii network targeted to home and family users could Having just completed two new projects for Wrigley's CHAPTERS / blow the doors open on branding potential. 'It could aforementioned www.candystand.com, Robbins sees allow much more everyday household brands where the 01 / 2.0 advergames falling within one of two streams. 'One SUMMARY average buyers are homeowners to actually begin is where we try to create this really big world, almost like utilising this space,' Bergen explains. 'If they open that 02 / a small MMO sort of thing, where you've got a massive up to advertisers, that's where more packaged goods INTRO amount of content. You can see that with [Fuel's recent type brands that have not been in gaming before will be 03 / Candystand contribution] GT Racing, where there's 30 able to get in, because the games will be less expensive TECHNOLOGY different events to race in,' he says. 'The other direction and they'll be targeted to these people.' we're going in, which is equally valid, is something like Wii Earth / 04 / ADVERTISING So what's the biggest takeaway from these emerging the Candystand Miniputt game, where you have a really trends? 'Gamers aren't one group anymore,' answers simple experience at the core but it's executed really 05 / LANDSCAPE Bergen. 'That's the biggest thing. Gamers will soon well, and everything is perfectly integrated with and become as diverse as the movie-going population and designed around the brand.' 06 / CONSUMERS the television-watching population. People who are Case in point: BBH New York based its most recent always going to want hardcore role-playing games 07 / advergame for Axe around content lifted directly from where you have to play for an hour before you can save MARKETING the brand's latest broadcast spot. Directed by Traktor, your progress. But now there's a huge generation that 08 / the commercial hinges around lovebirds who are maybe waiting 20 minutes for their wife to finish BUSINESS accumulate a thick layer of dirt, oil and tomato stains putting their makeup on. I'd never turn on Halo for that, after a comically exaggerated roll down a mountain. In 09 / but I'd turn on Geometry Wars in a hot minute.' Burger King / Pocket Bike Racer / DISRUPTION www.dirtyrolling.com, the player manoeuvres the link / www.burgerking.com couple as they freefall with the intent of getting them as 10 / 06.04 / Advergame 2.0 FACT dirty as possible. From the tomato patch to the oil stains One of the most accomplished Shockwave developers to the vivacious Italian looker who joins the couple for a 11 / in the gaming industry, Fuel Industries' Brian Robbins FUTURE brief spell, every single element from the spot is has been around for advergaming's many ups and reinforced in the game. 12 / downs; tellingly, he says he's never been more CONCLUSION Beyond browsers, there's also Crispin, Porter & enthusiastic or inspired about the genre's potential than 13 / he is right now. It's a development he attributes largely Bogusky's recent initiative for Burger King, which REFERENCES challenged our concept of the advergame by aligning it to major advances in the accompanying technology. 'Five years ago, Flash and Shockwave were limited with the halcyon days of the value-added toy. With the more or less to straight animation,' he says. 'That was help of England's Blitz Games, Crispin rolled out three about all you could do; you could tack some stuff branded Xbox 360 titles in which Burger King's titular Wringly’s Candystand / together but it would take a lot of work. Whereas today mascot figured heavily, and sold them in-store with link / www.candystand.com with Flash or something like Ajax, you're able to do more value meals for an additional $3.99 (US) apiece.

the gaming industry / consumer behaviour / p.30 Offered between November 19th and December 24th, 2006, the games topped a cumulative 3.2m in sales, and were widely attributed with helping Burger King's second quarter U.S. profit jump by 41%. CHAPTERS / 06.05 / What content do gamers love? 01 / SUMMARY The reigning champion of American football games (Madden NFL 07) took top prize as the best-selling 02 / INTRO game of 2006. But while sports games have traditionally dominated the console world (accounting 03 / TECHNOLOGY for five of America's top six selling titles in 2005), the emergence of seventh-generation platforms in 2006 04 / ADVERTISING brought a spate of high-profile first-person adventure games such as Gears of War and The Legend of Zelda 05 / that temporarily restored the balance. These two basic LANDSCAPE categories form the backbone of the console 06 / marketplace as it exists right now. Correspondingly, CONSUMERS sports games and closed-network adventure games 07 / are not nearly as prevalent on computing platforms as MARKETING they once were. Instead, the most popular computer 08 / games have evolved into titles that take full advantage of BUSINESS the platform, either via immersive, adventure-themed 09 / MMORPGs like World of Warcraft and Guild Wars, DISRUPTION investment-heavy social worlds like Second Life and 10 / The Sims Online, or with highly complex 'God games' FACT where users can build, scale and cultivate virtual 11 / environments (Roller Coaster Tycoon 3, Civilization 4). FUTURE Because of console dominance in the highly graphical, 12 / arcade style game, the middle class of computer game CONCLUSION has been almost completely phased out; PC games 13 / now generally take the form of hugely sophisticated, REFERENCES time-demanding pieces of software or free, casual, browser-based Flash games.

the gaming industry / consumer behaviour / p.31 Top 10 Video Games – December 2006 Top 10 December 2006 Includes All Platforms Units consoles and portables) Units 360 Gears of War (Inc. Collector’s) – Microsoft 815.7 K Madden NFL 07 – Electronic Arts 1.9mm CHAPTERS / PS2 Guitar Hero 2 W/Guitar(Inc. Standalone) – Activision 805.2 K Call Of Duty 3 – Activision 1.1mm 01 / PS2 Madden NFL 07 (Inc. Hall of Fame) – Electronic Arts 737.1 K Legend of Zelda: Twilight Princess – Nintendo 1.1mm SUMMARY GCN Legend of Zelda: Twilight Princess – Nintendo 532.9 K Cars – THQ 874.0 K 02 / INTRO Wii Legend of Zelda: Twilight Princess – Nintendo 519.2 K Need for Speed: Carbon – Electronic Arts 871.6 K 03 / TECHNOLOGY PS2 WWE Smackdown vs. Raw 2007 – THQ 484.5 K 360 Gears of War (Inc. Collector’s) – Microsoft 815.7 K 04 / NDS New Super Mario Bros – Nintendo 427.5 K PS2 Guitar Hero 2 W/Guitar (Inc. bundle) – Activision 805.2 K ADVERTISING 360 Call of Duty 3 – Activision 410.8 K Lego Star Wars II: The Original Trilogy – LucasArts 792.3 K 05 / LANDSCAPE NDS Yoshi’s Island 2 – Nintendo 407.2 K WWE Smackdown vs. Raw 2007 – THQ 731.6 K 06 / CONSUMERS PS2 Call of Duty 3 – Activision 365.3 K Tony Hawk’s Project 8 – Activision 713.9 K 07 / MARKETING 08 / Top 10 Video Games – Annual 2006 Top 10 Accessory Items – December 2006 BUSINESS Units Units 09 / PS2 Madden NFL 07 (Inc. Hall of Fame) – Electronic Arts 2.8mm 360 Wireless Controller 823.8 K DISRUPTION 10 / NDS New Super Mario Bros – Nintendo 2.0mm Wii Remote Controller 646.7 K FACT 360 Gears of War (Inc. Collector’s) – Microsoft 1.8mm Wii Nunchuk Controller 497.1 K 11 / FUTURE PS2 Kingdom Hearts II – Square Enix 1.7mm PS2 8 Meg Memory Card 474.8 K 12 / PS2 Guitar Hero 2 W/Guitar (Inc. Standalone) – Activision 1.3mm PS3 Six Axis Wireless Controller 336.0 K CONCLUSION 13 / PS2 Final Fantasy XII – Square Enix 1.3mm PS2 Memory Card 8 Meg 286.0 K REFERENCES NDS Brain Age: Train Your Brain – Nintendo 1.1mm PS2/PS Dual Shock2 Controller 263.4 K 360 Madden NFL 07 – Electronic Arts 1.1mm PS2/PS Blue Dual Shock2 Controller 245.2 K 360 Tom Clancy’s Graw – Ubisoft 1.0mm 360 Play & Charge Kit 224.6 K PS2 NCAA Football 07 – Electronic Arts 1.0mm PS2 Cordless Action Controller 219.9 K

the gaming industry / marketing, advertising & promotion / p.32 07 / pages 32-36 MARKETING, ADVERTISING & PROMOTION CHAPTERS / 07.01 / What is product placement's full potential? 01 / SUMMARY Marketers and gaming networks may have settled on dynamic in- game advertising as their weapon of choice (for the next little while, 02 / anyway), but the numbers also point to product placement as an INTRO exponential growth market. The tactic accounted for a modest $79m 03 / in revenue in 2003, but according to the Yankee Group, that number TECHNOLOGY is set to reach $260m by 2008. Product placement offers a richer 04 / brand interaction experience, alas, only a few marketers have gotten it ADVERTISING right so far. In Ubisoft's multi-platform title Splinter Cell: Pandora 05 / Tomorrow, players get instructions and updates from a Sony Ericsson LANDSCAPE P900 mobile phone. The synergy made sense for both sides, 06 / heightening gameplay while simultaneously creating brand CONSUMERS awareness. Elsewhere, Activision's Ski Resort Tycoon used the 07 / game's entrepreneurial theme as a springboard to introduce branding MARKETING into the environment, and then rewarded players with money and 08 / privileges relative to their level of ad involvement. BUSINESS While it's inevitable that we'll see even tighter integration between 09 / products and storylines in traditional games going forward, Bogost is DISRUPTION hugely critical of the level of integration he's seen so far. In a book 10 / called Persuasive Games, due for release via M.I.T. Press this spring, FACT he argues that developers and marketers are still light years away from 11 / realising the full potential of their powers. According to Bogost, a FUTURE former game designer himself, advertisers are too wrapped up in 12 / virtual media planning strategies to acknowledge the possibilities CONCLUSION afforded by video gameplay's uniquely immersive and tactile 13 / properties. 'What makes video games really powerful as a medium is REFERENCES that they can simulate how things work,' he explains. 'And so the most promising application of advertising in games would be to actually simulate how products and services work, right? Unfortunately, the creative work and [individual] development [necessary to accomplish that] clashes with the current value systems of the advertising industry, which have to do with the perpetuation of the media buy.'

the gaming industry / marketing, advertising & promotion / p.33 Rather than shoehorn a certain type of brand into the benefits of this captive teenaged audience. an existing game, Bogost says he'd like to see While the majority of those advertisements were marketers work more closely with publishers to traditional in-game ads, some brands have gone to open the door up to all product types. 'I was at an greater measures. Last year, L'Oreal set up a hair CHAPTERS / advertising and games conference a couple of studio within Habbo Hotel Netherlands to years ago and I remember one panelist said, “You promote its Garnier line of hair gels and waxes. 01 / know, there are just some things you can't put in a Users who entered could use Garnier products to SUMMARY game. Like, you can't have a game about vacuum restyle their hair or compete in various in-game 02 / cleaners.” That was his specific example, but if you competitions. The project generated 100,000 INTRO look at [Japanese megahit] Katamari Damacy in a user visits, 15% of whom ultimately clicked 03 / different light, it's basically a game about vacuum through Habbo banners to Garnier's website. TECHNOLOGY cleaners. There is the opportunity to see video Similarly, Sprite Canada launched a self- 04 / games as a lever that could lead to a fairly contained advertising campaign in Habbo last ADVERTISING significant shift in the way that advertising works, year. The project came complete with a virtual 05 / and not just the way that advertisers advertise.' spokesperson and a Sprite-branded nightclub LANDSCAPE called Club Thirst where users could interact with Habbo Hotel / link / www.habbo.com 06 / 07.02 / What opportunities are there in social the brand and win Habbo-related prizes. CONSUMERS worlds? 07 / There Brand as Identity Habbo Hotel MARKETING Owned by the Los Angeles-based Makena Second Life may have been the app that set the The founder of virtualworldsreview.com and the 08 / Technologies, There is based much more closely product manager for Makena, Betsy Book says BUSINESS blogosphere alight, but rival environments like on Second Life's model. Users have the ability to branding and social worlds go together like red Habbo Hotel and There have also racked up 09 / customise their own avatars, join special interest wine and cheese. 'Users are using social virtual considerable traffic. Launched by the Sulake DISRUPTION groups and purchase goods using the software's worlds in very different ways than they are using Corporation in Finland in 2000, Habbo Hotel's 10 / proprietary currency, Therebucks. Proponents of gaming worlds,' she says. 'Gaming worlds can be numbers now dwarf those of Second Life. As of FACT the software contend that its emotion and gestural an escape where you concentrate on leveling up. October 2006, 66mn Habbo characters had been 11 / system is better than Second Life's, and that For its users, social virtual worlds are all about created on the site, and 7mn unique users FUTURE There's rich toolbox of social networking tools extending their own personality - their own brand, remained active on a monthly basis. Geared to (such as user websites, text and IM abilities and if you will. I've found that lots of users, especially 12 / adolescents and teenagers and segmented into CONCLUSION voice chat) make it easier to meet new people. the younger ones, are really savvy about communities based on native countries (of which a While the product doesn't generate nearly as associating themselves with brands that they 13 / total of 29 are now represented) the Habbo REFERENCES much press attention, it's generally considered to identify with in order to communicate something environment eschews the visual fidelity of be a purer and more wholesome alternative to about themselves or at least what they aspire to something like Second Life in favour of a more Second Life, whose influx of attention has be. You might see kids in There or Second Life or cartoonish, Playmobil-inspired look. But its lack of attracted a swarm of casual and not-entirely- Habbo Hotel running around with brands in their realism hasn't proven a barrier for brands; Coke, invested new users. screen names or branded items that convey Nike, PlayStation, Gillette and Proctor & Gamble are just a few of the brands who've cottoned on to something about who they aspire to be. Whether

the gaming industry / marketing, advertising & promotion / p.34 that's like a Burberry hat or a hip-hop brand, it says extend cultural cachet. Thanks to endeavours something about the social group or the racial such as these, some Second Lifers now have group they identify with. It's actually a great tactic strains of virtual and real-world product lusts to find other people with common interests.' running concurrently. (How's that for brand CHAPTERS / reach?) Book also points to the entertainment sector as 01 / being particularly well-suited to the communal For his part, Bogost sees the potential for richer, SUMMARY nature of social worlds. Artists Suzanne Vega and more meaningful engagement with products in 02 / Duran Duran have both given 'live' concerts in social worlds, and points to a recent Second Life INTRO Second Life, and a number of films and television initiative by banker Wells Fargo as an example of Duran Duran / 03 / shows have seized upon the platform as a social social world marketing done right. 'You don't really link / www.secondlife.com TECHNOLOGY promotional tool. 'MTV actually set up Virtual need a bank in a virtual world, but there is an Laguna Beach in There so that fans could view the economy, so why not have banking? ' he says. 'The 04 / ADVERTISING Laguna Beach premiere with their friends and main idea was that you could try out banking and other fans the night before it aired on MTV,' says money management strategies inside this virtual 05 / LANDSCAPE Books. 'That's a perfect example of a brand world, where you can lose money without feeling thinking about a way to reward their best so bad about it. Or you could just go in [to a virtual 06 / CONSUMERS customers and their fans and making sure that branch] and have conversations from the comfort they've established this really amazing positive of your own couch. So hopefully we'll see it grow in 07 / relationship with them. And all these fans got the the direction of interacting with company services MARKETING first look at the episode and were so excited and and products rather than just seeing Gap- 08 / that allowed them to go and spread the word.' branded clothes on your avatar.' BUSINESS 09 / Retail Launches But Bogost also says the user-generated nature Project Gotham racing 3 / DISRUPTION of social world economies may pose a hurdle for link / www.projectgothamracing.com But really, since virtual consumerism is one of the brands merely looking to co-opt the space. 10 / hallmarks of Second Life, opportunities abound FACT 'Obviously Gap or any brand like that transfers into for all kinds of different brands. Last summer, a virtual world directly,' he says. 'If it has a social 11 / Toyota unveiled its Scion xB in Second Life by FUTURE value in our world, it probably has the potential for scattering test drive models at various a similar social value in another. But we're also 12 / environment locales. Later, it launched a CONCLUSION seeing a lot of user-created brands. These worlds dealership where users could purchase and have their own life and the advertising that takes 13 / custom build virtual versions of the car - a perfect REFERENCES place inside them has to account for the fact that extension of the auto's real world customisability. this is not the real world, this is a world in which Other brands such as American Apparel and their competitors are not the other big retail adidas have launched flagship clothing stores apparel stores but rather some guy who makes inside the environment, which they've used to shirts that are really popular, and that's a different introduce new real-world products (such as Laguna Beach / kind of strategy for a company to think about.' adidas did last year with the A3 Microride) and link / www.secondlife.com

the gaming industry / marketing, advertising & promotion / p.35 07.03 / How do we measure effectiveness? than when you're sat playing something like Project Gotham Racing 3,' she says. 'Peak While the science of things like total banner views participant players do not engage at all with and overall ad reach is fairly straightforward, the advertising that surrounds the game.' overall effectiveness of in-game advertising is CHAPTERS / currently the subject of heated industry debate. Bunnyfoot's research, says Walton, isn't an 01 / While both Massive and IGA point to in-house indictment of the notion of advertising within SUMMARY studies allegedly proving that product and brand games, but rather more of how they're being 02 / recall improve as a result of in-game advertising, a deployed. 'I wouldn't say [ads] are a poor INTRO UK-based consumer behaviour research group investment - I would say there are better ways to called Bunnyfoot contends that their own optimise the ad investment within a game,' she 03 / TECHNOLOGY research shows exactly the opposite. By using says. 'We're here to provide measurement and a non-invasive eye tracking and bio-physiological tool that will enable publishers and developers and 04 / ADVERTISING measurement techniques, the researchers at ad agencies and brands to optimise the games for Bunnyfoot can follow a user's gaze, decipher the the players and also optimise the brand impact 05 / LANDSCAPE overall order of the elements they're looking at, and within the game. So let's make it more effective. even calculate things like overall fixation length Lets make it more real world and lets make it work 06 / and screen 'hotspots'. The company has been for all parties. Let's not piss the gamers off. Let's CONSUMERS using these proprietary tools to gauge consumers' not just grab a brand's money here there and 07 / responsiveness within the web and TV realm since everywhere. Lets develop an in-game advertising MARKETING 1999; in 2005, it branched out into video games. industry that works and that's effective.' 08 / BUSINESS Responsiveness Different World 09 / According to Alison Walton, head of Bunnyfoot's Not surprisingly, Bogost isn't convinced of in- DISRUPTION video game research department, the heightened game advertising's effectiveness either, and 10 / immersiveness of the video game experience implies a fundamental lack of understanding on FACT doesn't necessarily translate to heightened the part of anyone who equates an in-game 11 / responsiveness to advertising; in fact, a gamer's billboard hit to one in real life. 'There is an FUTURE intense preoccupation with what they're doing assumption that when I am playing a game like 12 / might actually be precluding them from absorbing Grand Theft Auto and I walk by an ad, I perceive it CONCLUSION any additional information. That's why more deeply in the same way that I would in the real world, 13 / integrated solutions, such as Arc and Denuo's which, intuitively, to me, is absolutely not the case,' REFERENCES Project Gotham Racing 3 initiative for Cadillac, he says. 'The whole purpose of playing a game is to link / www.rockstargames.com might represent the next step forward for this type abstract whole segments of the world and focus in of advertising. But until those types of projects on whatever particular actions the game is about. become more commonplace, Walton remains The rest of the world provides a texture, and you sceptical. 'The problem is that [regular in-game see this because a lot of games will actually use advertising exposure] is a different experience that texture to actively mock advertising.'

the gaming industry / marketing, advertising & promotion / p.36 Like Walton, Bogost cautions marketers not to put too much stock into things like 2D billboard metrics. 'I'm just not sure we understand yet what that player is understanding about the world CHAPTERS / they're exploring in a game,' he says. 'They're making decisions but they're also strategising, and 01 / they're consuming that world in a different way SUMMARY than they are when walking past the ads in a 02 / subway tunnel. I don't have any answers to this INTRO question. I think this is an active area for some real 03 / research to be done; proper research - not TECHNOLOGY advertising industry-funded research.' 04 / ADVERTISING Simon Andrews, digital chief strategy officer for Mindshare, commented following the release of 05 / LANDSCAPE the Bunnyfoot findings: 'We've a lot of experience of looking at media property data that comes from 06 / their ad serving platforms, so we're confident this CONSUMERS is all kosher - we don't deal with companies we 07 / don't trust. I think the Bunnyfoot research is MARKETING indicative of the trend we find in all media - most 08 / consumers are ad avoiders and would rather not BUSINESS see advertising. In gaming, intrusive ads can 09 / detract from the experience and that has a DISRUPTION negative effect on the brand - but good advertising 10 / can make the games more realistic - and good FACT approaches can enhance the game.' 11 / FUTURE 12 / CONCLUSION 13 / REFERENCES

the gaming industry / the business angle / p.37 08 / pages 37-42 THE BUSINESS ANGLE CHAPTERS / 08.01 / What role are agencies playing in the gaming world? 01 / Saatchi LA SUMMARY Although traditional ad agencies have made encouraging gestures 02 / towards video games over the past two years, the overwhelming INTRO majority currently lack the structure or in-house expertise devoted to 03 / the medium. One of the rare exceptions can be found at Saatchi & TECHNOLOGY Saatchi Los Angeles, where, along with Interactive CD Peter Kang, 04 / Sam Bergen oversees strategy and creative development for the new ADVERTISING media element of Saatchi's Toyota account. With projects ranging 05 / from in-banner advergames promoting the Toyota Yaris to Toyota- LANDSCAPE sponsored ad interstitials in the enormously popular Xbox 360 title 06 / NBA 2K7, gaming accounts for a massive portion of Bergen's overall CONSUMERS workload. And yet, while Toyota enjoys strong presence in the advergaming and console worlds as a result of Saatchi's investment, 07 / MARKETING other agencies have yet to follow the lead. Bergen interprets the industry's overall lack of movement as a sign that, where it comes to 08 / BUSINESS gaming, agency heads prefer empty talk. 'I'm the only person I know of in the entire industry who's doing this,' he says. 'They created a 09 / DISRUPTION position for me - I used to be in a different department. On the front, every agency's going to say, yes, gaming is great and we want to be 10 / FACT involved, but a lot of people don't have the knowledge base or the wherewithal to do it. There's a lot of marketers coming into a space 11 / thinking they know how to get involved when they really don't.' While FUTURE Shumaker doesn't need to evangelise to agencies nearly as much as 12 / she used to, she still comes up against the occasional brick wall: 'I'll be CONCLUSION in a meeting with a planner and one of their first things is, \"Games? 13 / You've got to be kidding me. I'm not into games. I'm not trying to reach REFERENCES 12-year-olds\".' Bergen's job description includes overseeing media spends for Toyota's gaming initiatives and scouting new developer and design talent. An avid gameplayer, Bergen's input helps keep Toyota's extensions into that world holistic. 'It's about integrating yourself to the

the gaming industry / the business angle / p.38 point where it's organic and seems natural, and there's not much of a question of whether or not you paid for it, it just seems right,' he explains. 'That's what I strive to achieve every single day - to find cool, creative programs that are going to add value to our consumers and aren't going to get in the way of their experience.' The bulk of the CHAPTERS / money on the account, he says, is devoted to partnerships with 01 / existing console brands, and ranges in terms of use from in-game SUMMARY advertising buys to the development of special, Toyota-branded 02 / sections in titles like Anarchy Online and NBA 2K7 (which features an INTRO in-game replay function branded as the Toyota Fastbreak Reply - 03 / exactly as it is in regular basketball broadcasts). Nonetheless, Bergen TECHNOLOGY is careful to make sure that the brand has visibility in more places than 04 / just consoles. 'The best way for a brand to approach gaming is not to ADVERTISING look at it as console gaming or online gaming or events and Anarchy Online / 05 / promotions around gaming, it's to look at everything,' he says. 'Mobile, link / www.anarchy-online.com LANDSCAPE portables, consoles, console online, PC and online casual gaming - 06 / that's several different silos, and you should have presence across CONSUMERS three or four of those if you want to have a presence in the gaming world.' 07 / MARKETING Denuo 08 / BUSINESS In 2006, Publicis Groupe announced the launch of a major strategic initiative entitled Denuo, designed to anticipate and exploit the rapidly 09 / DISRUPTION changing digital, interactive and mobile communication environment. Operating as a standalone business, Denuo incorporated a high 10 / performing games unit, Play (formally of Starcom MediaVest). 'The FACT creation of Denuo is a very important strategic decision for our 11 / Groupe’, said Maurice Levy, Chairman and CEO of Publicis Groupe, FUTURE at the time of launch. 'We are of course already very present in the 12 / digital and interactive universe and have continuously pushed the CONCLUSION envelope with various important marketing innovations. With Denuo, 2142 Battlefield / 13 / we aim to place the entire Groupe at the very cutting edge of link / www.battlefield.ea.com REFERENCES innovation - for the benefit of our clients, by helping get the most for their brands in this new world; and for the benefit of our Groupe, in identifying investment opportunities at a very early stage.' Play's vice president and group director, Saneel Radia, explains the link / www.mortalkombat.com expansion of Play: 'Since Denuo's inception last year, our team at Play

the gaming industry / the business angle / p.39 has grown twofold. We continue to be recognized medium, especially in a world where 1) brands by both the gaming and advertising industries as have woken up to have diverse the game playing the agency leader in helping brands market via audience truly is, and b) the console gaming games. We're laser focused on creating unique industry is actively pursuing the improvement of CHAPTERS / brand experiences for consumers, whether it's the dynamically served ad opportunities,' he explains. 2nd annual Pontiac Virtual NCAA Final 4 'That said, there is an entire component to this 01 / tournament or the Old Spice Experience industry that is more akin to partnering with SUMMARY Challenge for Xbox Live gamers. As true pioneers entertainment partners than technology vendors. I 02 / in the space, we entered the scene as the first would say that it's those custom, bigger INTRO marketing services company to leverage opportunities that this agency model fails to deliver 03 / videogames and we'll continue to seek out the against in most cases.' TECHNOLOGY most valuable and engaging in-and-around-game 04 / brand integrations for our clients and their 08.02 / What are likely strategies between ADVERTISING companies in the face of competition? What consumers.' 05 / alliances will there be? LANDSCAPE The Old Spice Experience Challenge was announced in February 2007, and represents the Microsoft & Massive 06 / first exercise in the new Xbox rewards program for In-game networks are relatively new propositions CONSUMERS Xbox Live users. Gamers are able to earn rewards within the gaming space; so new that publishers, 07 / like games and other prizes in accordance with the agencies and brands are still trying to figure out MARKETING amount of Gamerscore achievements they what alliances might logically emerge as the 08 / collect. Participation in the program is free, but business evolves. One huge indicator of how BUSINESS requires a valid Windows Live ID and an Xbox Live things might play out came from Microsoft's recent 09 / gamercard. Gamers taking part in the challenge purchase of Massive. Much like a television DISRUPTION who managed to increase their Gmerscore by network, Massive's number one commodity is the 10 / 1,500 points or more within the two months of the quality and reach of its own network; it stands to FACT promotion received free games, special Old Spice reason that a company as heavily invested in 11 / Xbox Rewards gamer pictures, and Old Spice gaming as Microsoft should want control over FUTURE merchandise. Prizes were limited on a first-come, those resources, not to mention the power to shut 12 / first-served basis to increase demand and buzz rivals (such as Sony Home Entertainment) out of CONCLUSION around the project. the equation. As a direct result of the May 2006 13 / sale, Massive's resources were redirected to Through a specifically targeted approach REFERENCES Microsoft-owned platforms only, with Xbox Live, developed at Play, Radia is persuaded that Denuo MSN Games and various other Microsoft services have sidestepped some of the pitfalls of agency benefiting. Davis acknowledges that the software involvement in this space. 'I would say most giant's May 2006 purchase had an immediate agencies have bucketed gaming under their online impact on the company. 'It has changed in a planning teams. This is a great solution for those number of different ways - one is that we always brands approaching the space purely as a

the gaming industry / the business angle / p.40 CHAPTERS / 01 / SUMMARY 02 / INTRO 03 / TECHNOLOGY 04 / ADVERTISING 05 / LANDSCAPE 06 / CONSUMERS 07 / MARKETING have access to a lot of resources that MSN has on Arsdale remained positive, saying: 'We've got ways of embedding the brand in the game. Some 08 / the technology side of things,' he says. 'Access in quite a head start here. The Massive team has examples we might see in the future could include BUSINESS terms of data, research, those types of marketing been working side by side with the Xbox team drinking Red Bull to give your character more 09 / tools that we can use for our advertising partners, while utilizing the huge investment Microsoft is energy, or wearing branded trainers to put more DISRUPTION and we're also excited to be on the 360 platform, making in advertising platform technology and spring in your avatar's step. The smartest ideas 10 / which is the single most important platform we worldwide sales execution, creating a powerful could be when interaction with the brand delivered FACT have now.' combination for the in-game advertising industry an Easter egg experience - opening up a new level, 11 / that's simply unmatched. We've made fantastic introducing a new character, or adding some FUTURE Google & Adscape progress - 50+ live game titles in the network enhanced functionality. With this in mind, I think 12 / In March 2007, Google also moved into this area, today, 60+ blue chip advertisers, and 115 we'll see banner ads start to disappear - they're the CONCLUSION buying rival company Adscape for the bargain million+ game sessions served to date - and we're wrong format for this medium.' 13 / price of $23m (£13m). Google has a proven track just getting started. This space is exploding, and REFERENCES record in serving advertising across various we're actively expanding our operations to realise The Funcom Model content platforms, plus Microsoft arch-rivals Sony the businesses' full potential.' Another likely future scenario: the skyrocketing has demonstrated an unwillingness to add titles cost of development will drive the second tier of Although these statistics prove that in-game designed specifically for Sony consoles to an in- game developers into advertiser's open arms. A banner ads are obviously big business, Simon game advertising network run by the competition. few years ago, Norwegian game developer/ Andrews of Mindshare said: 'Rather than just In the wake of this buyout, Massive CEO Cory Van publisher Funcom embraced in-game advertising sticking ads on top of the game we should look for

the gaming industry / the business angle / p.41 as a strategy to defray the cost of upkeep for its enormously successful MMO, Anarchy Online. It's a scenario that product manager Terri Perkins says is going to become more and more common as developers' budgets balloon. 'The price to make an MMO just keeps skyrocketing,' she says. 'It costs millions and millions a year, CHAPTERS / and it goes up every year if you want to stay on top technology-wise. 01 / Unless you're in the top three game companies and have huge SUMMARY budgets, it's really difficult for some of these other incredibly creative 02 / and talented people to get their games to market.' INTRO It's not unlikely that the next decade might yield a new funding model 03 / where entire games - or at least elements of them - are completely TECHNOLOGY underwritten by brands. 'If we've done our job, in two years when a 04 / video game publisher thinks about their business, they will think about ADVERTISING their options differently,' says Shumaker. 'They'll think, \"Maybe I want 05 / to launch this level for free as an ad-based game proposition\" or LANDSCAPE \"Maybe I want to offer this level to be sponsored, to be paid for by a 06 / sponsor and gifted to the game consumer.\" The sky is the limit.' CONSUMERS EA Fight Night / 07 / Hollywood Muscles In link / www.easports.com/fightnightround3 MARKETING Extrapolating further into the future, Bergen forecasts a two-way 08 / synergy between video games and Hollywood, one that will see BUSINESS filmmakers look increasingly to games for IPs and for game designers 09 / starting to be idolised on a larger level. Given that adaptations of DISRUPTION console titles such as Tomb Raider, Pokemon, Mortal Combat and 10 / Resident Evil have all performed well in Hollywood, it stands to reason FACT that both sides should get even comfier with each other. 'With Peter 11 / Jackson [originally] signing on to do the Halo [film] and Steven FUTURE Spielberg signing on to do three games with Electronic Arts, you're 12 / seeing that convergence,' he says. CONCLUSION Lastly, the gold rush for compelling and forward-thinking gameplay 13 / combined with a general agency inability to deliver that in-house REFERENCES bodes well for boutique game developers. Bergen says he's seen numerous developers eager to establish themselves as an agency's number one advergaming vendor. As small, nimble companies such Pokemon The Movie / as Brooklyn's Smirk continue to reap awards for innovation in link / www.pokemonthemovie.warnerbros.com advertising, it might not be long before agencies start snapping them up as in-house gaming solutions.

the gaming industry / soundbites / p.42 GAMING / SOUNDBITES CHAPTERS / 01 / SUMMARY Consumers have personal and valuable relationships 'If we've done our job, in two years when a video game with these spaces, with their avatars, with their other publisher thinks about their business, they will think 02 / friends. It's really a good opportunity to market to them about their options differently. They'll think, \"Maybe I INTRO and forge relationships through their brands.' want to launch this level for free as an ad-based game 03 / Betsy Book / founder of virtualworldsreview.com and proposition\" or \"Maybe I want to offer this level to be TECHNOLOGY product manager / Makena sponsored, to be paid for by a sponsor and gifted to the 04 / game consumer.\" The sky is the limit on where video ADVERTISING 'We need to evolve and enhance the advertising game publishers and developers might take this.' 05 / models much more effectively. We need to create good Julie Shumaker / VP Sales / Double Fusion LANDSCAPE games that integrate advertising well, than can gauge 06 / the user, and enhance, or optimise that brand influence 'I'm just not sure we understand yet what that player is CONSUMERS on the consumer much more effectively.' understanding about the world they're exploring in a 07 / Alison Walkton / head of video game research / game. They're making decisions but they're also MARKETING Bunnyfoot strategising, and they're consuming that world in a 08 / different way that they are when walking past the ads in BUSINESS 'What's going to be the dominating media hub in the a subway tunnel.' living room of the future? Is it going to be some kind of Ian Bogost / Georgia Institute of Technology assistant 09 / DISRUPTION PC device? Is it going to be some kind of console professor and ad-gaming pundit device?' 10 / FACT Justin Townsend / CEO / IGA Worldwide 11 / FUTURE 'At the end of the day it's the experience, not about overwhelming people with messages. If you over- 12 / message something you can create a negative brand CONCLUSION halo effect. The idea of buying huge reach and huge 13 / amounts of frequency - the conventional wisdom of that REFERENCES is starting to proven to be ineffective and in some cases even detrimental to the brand itself.' Brady Gilchrist / EVP Strategy / Fuel Industries

the gaming industry /disruption & resistance to change / p.43 09 / pages 43-44 DISRUPTION & RESISTANCE TO CHANGE CHAPTERS / 09.01 / Will there be a backlash? What do door for anything.' That news was met with gamers hate? derision by gamers; unfortunately, EA has proven 01 / SUMMARY slow to adapt. Upon hearing the news that EA had Tracking spiked the PC title Battlefield 2142 with 02 / Advertisers, take note: just because we've yet to monitoring software that recorded and relayed INTRO see a major gamer backlash doesn't mean it information like individual user IP addresses and 03 / couldn't happen. Yes, gamers have met the online activity patterns, Kotaku's commenter base TECHNOLOGY increased commercialisation of their virtual space once again deluged the site with bilious rants. 'It 04 / with admirable sanguinity so far, but that doesn't occurs to me that the EA is actually using the ADVERTISING mean they don't have their limits. Kotaku.com is Battlefield series as an experiment to find out how 05 / one of the largest gaming blogs on the web, and, in much bullshit a customer base will take before LANDSCAPE fine, Gawker-owned tradition, happens to attract they finally learn,' wrote one, while another 06 / some of the savviest (and snarkiest) acolytes declared 'EA just reached an all new low.' While CONSUMERS around. When it comes to matters of user privacy, the issue was eventually somewhat resolved by a Kotaku / editor Brian Crecente cautions that all bets are off. statement from EA claiming that the game only 07 / link / www.kotaku.com MARKETING 'A number of companies that have done in-game monitored advertising exposure and that advertising also track and pay for ad views, and demographic information was collected on a 08 / BUSINESS that's the biggest thing that turns gamers off,' he country-specific rather than personal scale, says. 'They don't like the idea of someone tracking gamers' messages came through loud and clear: 09 / DISRUPTION their game play; there's this sort of outrage [over Big Brother has no place in video games. that]. Some people even think of it as spyware.' 10 / FACT Quid Pro Quo Privacy 11 / When it comes to other aspects of advertising, Privacy is, without doubt, the single biggest hot gamers are mostly open to negotiation. The FUTURE button topic among gamers today. Violate it in any majority, says Crecente, are media literate enough 12 / way and users will revolt. 'When EA came out with CONCLUSION to understand the intrinsic benefit that advertising Fight Night for the PSP, the box said nothing about brings to gaming's infrastructure, but also 13 / you having to do anything to get access to the REFERENCES appreciate the ability to moderate their own levels online support,' Crecente recalls. 'But when you of exposure. 'If you're told you have an option to pay go in to sign on the first time, EA makes you accept full price and not have any ads, or to get a game for their user agreement and their user agreement free or deeply discounted with ads, gamers says that they can use all of your information for understand,' he says. 'They like being able to advertising purposes or give it to any 3rd party they choose between the two and its nice to know your link / www.easports.com/fightnightround3 want. So if you accept, you've basically opened the opinion matters.' That's been true of Perkins'

the gaming industry / disruption & resistance to change / p.44 experience as well. 'The night before we went live accompany television broadcasts, he also [with ads], I [stayed up] with several other people in acknowledges that networks have to be sensitive the company waiting to see what the reaction to gamers' breaking points. Gilchrist concurs. 'At would be, and it was great,' she says. 'A year and a the end of the day it's the experience, not about CHAPTERS / half later, the total complaints that I've ever had overwhelming people with messages,' he says. from players has been under five, and some of 'The Journal of Marketing just released a paper that 01 / those were upset because they were in a country said if you over message something you can SUMMARY that didn't have any ads and they felt left out.' Even create a negative brand halo effect. The idea of 02 / with the ad toggle option, Perkins says the buying huge reach and huge amounts of INTRO overwhelming majority of Anarchy Online frequency - the conventional wisdom of that is 03 / subscribers leave them turned on. 'In our starting to proven to be ineffective and in some TECHNOLOGY experience, players don't turn them off even if cases even detrimental to the brand itself. That in 04 / they're paying,' she says. 'It adds to the game and itself is another major realization.' ADVERTISING it makes it more dynamic.' To that end, Perkins says 05 / most of the ad-related complaints she's received Negative Feedback LANDSCAPE have had to do with anachronisms and continuity Ultimately though, as these communities become 06 / issues than anything else. larger and more segmented, advertisers and CONSUMERS brands need to brace themselves for the 07 / possibility of negative user feedback. After MARKETING orchestrating a serious of bomb attacks against 08 / branded SL outposts for American Apparel and BUSINESS Nissan, a vociferous and well-organised citizens 09 / group known as the Second Life Liberation Army DISRUPTION (SLLA) started offering rewards in Linden dollars for taped attacks on the virtual spaces of digital 10 / FACT agencies like Electric Sheep, Millions of Us and Rivers Run Red. While such an organization in 11 / FUTURE Second Life Liberation Army / Second Life was probably an inevitability, SLLA's link / www.slla.blogspot.com reasoning behind these terrorist measures might 12 / CONCLUSION come as a surprise. Unlike American Apparel and Nissan, whose SL efforts SLLA derided on its 13 / REFERENCES Tolerance Levels blog, those specific agencies weren't targeted But advertisers also have to be careful not to because they performed poorly in the space, but exploit this give and take relationship. While Davis rather because they'd performed exceedingly well, is quick to point out that advertising on the Massive and assumed too much control. The takeaway? network runs about 4-5 minutes an hour Gamers prefer advertisers to play support - rather compared to the 12-24 minutes an hour that than leading - roles in social communities.

the gaming industry / fact or fantasy / p.45 10 / page 45 FACT OR FANTASY? CHAPTERS / 01 / 10.01 / Do advergames actually work? Do maybe three times a year they're going to build trick is mainly in getting the audience to look at the SUMMARY people want to play them? small little advergames that only cost them 60 wrong thing.' 02 / grand to build, if that. That will keep happening.' The good news is that developments in Flash and While Fuel Industries’ EVP of strategy Brady INTRO Shockwave have left advergame developers 10.02 / Is Second Life a mirage? Gilchrist is skeptical of Second Life's alleged 03 / widespread appeal, he contends there are still TECHNOLOGY better equipped than ever to deliver compelling Contrary to the received wisdom of one Harry reasons to be interested in its progress. 'The plane content, a development which in turn has the 04 / Nilsson, there's mounting evidence to suggest that has been successful for Second Life right now industry focused on the raising the bar in a way it ADVERTISING that 3.8m might in fact be the actual loneliest hasn't been for games. Better still: the more the is mainly the media plane - people getting 05 / number. For the past twelve months or so, Linden awareness through articles about it,' he says. standard for great advergames rises, the less we'll LANDSCAPE Labs' Second Life has coasted on a tidal wave of have to put up with the mediocre stuff. 'It's like the 'From a technology and intrigue perspective, I'm a 06 / new media hype. With its profile fuelled by huge fan of virtual reality and it's something that's ultimate meritocracy,' says Gilchrist of the CONSUMERS bloggers, journalists and marketers, the MMO kind of neat to look at. Will it manifest where Internet's natural selection process. 'If you create 07 / surpassed the one million user mark in October everybody is on Second Life in the future? I don't bad advertising or bad games, no one is ever really MARKETING 2006 and cruised past the two million mark only think so, but I think what you'll see are synthetic going to know about them because they'll just three months later. At press time, it stood at just places and virtual worlds evolving into becoming 08 / shrivel up and die on their own.' BUSINESS under 3.8m. But while believers are hailing it as a places for people to have experiences online as Others take a more practical outlook: as long as hugely significant force in tomorrow's new media well as the existing web.' 09 / DISRUPTION there's time to be killed, advergaming will maintain scrum, others are finding cause for skepticism. a pulse. 'The other day on Digg there was this 10 / At issue is Linden Labs' user reporting tactics; Choas Theory game - would it make a difference if FACT specifically, whether a number like 3.8m (which it was [by] Miller?' wonders Bergen. 'Advergames 11 / spans total registered users, even those who only like that aren't really going to go anywhere.' With FUTURE tried it once) is at all representative of Second brand websites changing from informational 12 / Life's actual reach. In a recent post to tech gossip resources to content hubs, Bergen says CONCLUSION blog Valleywag, reporter Clay Shirky delved advergames are safer than ever. 'Miller doesn't 13 / deeper into the company's January 2007 metrics want you going to their website just for the alcohol REFERENCES and concluded that 'something like 5 out of 6' content and calorie count of their beer; they want Second Life users 'bailed in the first month' and you going there because maybe they're going to that approximately only 10% of that overall tally have a concert series, or give away cars, or give 'have given Second Life even a cumulative work away videogames - who knows,' he says. 'But they week of their time over the history of the platform'. want you going there on a regular basis, and His conclusion? 'As any illusionist will tell you, the they're going to continue to provide content, so Chaos Theory /

the gaming industry / the future view / p.46 11 / page 46-47 THE FUTURE VIEW 11.01 / Where do we go from here? you just show some branded imagery and gauge CHAPTERS / how many eyeballs see it, but I think actually There's little doubt that online is the future of 01 / forging relationships with consumers could pay off gaming, but with so many offline consoles still in SUMMARY with much bigger returns in the end.' play, it's important to remember that we're still very 02 / much in the early stages of the connectivity More than anything, the brands that will retain INTRO revolution. 'The best way to see it is, right now, relevance and presence in this space will be the 03 / there are 100m PlayStation 1s and a further 100m ones that learn to think about video games in more TECHNOLOGY PlayStation 2s on the market,' says Townsend. sophisticated and evolved ways. 'I think we need 04 / 'The PlayStation 3 is going to do the same amount to evolve and enhance the advertising models ADVERTISING of sales over the next three years and Xbox 360 will much more effectively. We need to create good 05 / probably go in the same direction. That's going to games that integrate advertising well, that can LANDSCAPE be a turning point to the industry as a whole.' gauge the user, and enhance, or optimise that 06 / brand influence on the consumer much more CONSUMERS Those numbers bode well for in-game networks, effectively,' says Bunnyfoot's Walton. 'What's but Shumaker also acknowledges that networks 07 / happening right now is going very well with the and marketers are going to have to evolve if they MARKETING industry, and we're making a good start, but that's want to stay relevant. 'These billboards will always 08 / what it is - it's a start.' have a place,' she says. 'Skyscrapers and BUSINESS billboards are always going to be able to derive 11.02 / What does the future hold? 09 / some additive product value from awareness, DISRUPTION Media Convergence reach and frequency building. But the reality of 10 / where it's going, and why I actually risked my Forget Halo 3; over the next five years, the video FACT career capital to come to Double Fusion is that I do game landscape will be dominated by a much 11 / believe that technology and the innovation of in- larger war. Media convergence is just around the FUTURE game advertising will ultimately have to keep up corner; soon, consoles and computers will find 12 / with marketers' interest to evolve.' themselves competing for control of the single CONCLUSION most important space in the household: the living It's a sentiment echoed by Book, who has high 13 / room. 'What's going to be the dominating media hopes for how brands might one day interact with REFERENCES hub in the living room of the future?' wonders users in social worlds. 'Consumers have personal Townsend. 'Is it going to be some kind of PC and valuable relationships with these spaces, with device? Is it going to be some kind of console their avatars, with their other friends,' she says. 'It's device?' While it's still too soon to know the really a good opportunity to market to them and answer, many contend this true convergence of forge relationships through their brands. That's television, the Internet, gaming and virtual space much more complex than the CPM model where

the gaming industry / the future view / p.47 will radically alter the way we receive media and consume advertising. The potential for a major paradigm shift is there. 'When you extrapolate stuff like that into the idea of the far web, which is the huge screen experience, you can start to see where your imagination can CHAPTERS / kind of go a little bit wild,' says Gilchrist. 'That's when you start to create windows and doorways into what are literally other worlds.' 01 / SUMMARY New Interactions 02 / As graphical capabilities and broadband access improves over the INTRO next decade, Bogost forecasts a fundamental split in the way that 03 / marketers and developers approach technology. The majority, he TECHNOLOGY says, will follow in the path laid out by broadcast television and devote 04 / their time and energy to improving visual fidelity. The more interesting ADVERTISING thinkers, he argues, will focus on new and creative interfacing 05 / technologies. 'Those of us who are trying to splinter and find new ways LANDSCAPE of talking to people are going to be more interested in abstracted 06 / environments that provide different kinds of hardware accordances, CONSUMERS whether that's [with] gestural controls or better technology for 07 / artificial intelligence, where you could really interact with people or MARKETING agents in a world that would be more credible than it is in the current 08 / technology. There will be people who obsess with graphics, and that's BUSINESS the path that advertising has been on and will keep going down, but 09 / then there's this other path which is really the interest in new kinds of DISRUPTION interactions.' 10 / It's a scenario Townsend hints is much closer than we might think. FACT 'Exciting times are ahead, there really are,' he smiles. 'I've already had 11 / some hints of what the next generation of consoles are going to look FUTURE like. In about eight to nine years from now, you'll have Britney Spears 12 / in your living room.' How's that for a sobering thought? But on the CONCLUSION bright side, we bet you she won't be able to spell 'zap' either… 13 / REFERENCES

social networking / contagious point of view / p.48 12 / page 48 CONTAGIOUS POINT OF VIEW CHAPTERS / 01 / EMBRACE GAMING! SUMMARY Early adopter brands set to benefit 02 / Provide experiences, not messages INTRO Respect the environment 03 / Innovate TECHNOLOGY 04 / ADVERTISING A / The water's warm if you add to the clutter, detract from the overall user 05 / Whether in the realm of consoles, computer games, the experience, insult the gamer's intelligence or interrupt LANDSCAPE Internet, or mobile phones, all indicators point to gameplay, you will get bitten. Respect the environment gaming becoming an increasingly potent force within and the gamer. 06 / CONSUMERS the media framework over the next five years. As the gaming demographic expands outwards into older, C / Don't think in box ticks 07 / MARKETING more affluent and gender-neutral territories, gaming Remember: the infrastructure and methods of practice 08 / content will evolve, thus opening the door for more that currently dominate gaming and advertising are still BUSINESS types of brands to get involved. In terms of overall in flux, and the success stories in each respective field uptake, one could argue that gaming now is where the are still relatively few and far between. If you learn the 09 / DISRUPTION Internet was five years ago; over the next decade, brand technology, respect the gamer and stay true to your participation in these spheres (especially where brand, you could set yourself up to deliver a completely 10 / FACT clothiers, technology, cars, drinks, foods, and unique creative applications. There's ground to be entertainment channels are concerned) will gradually broken here. 11 / FUTURE shift from novel to mandatory. Concurrently, techniques and approaches to brand 12 / CONCLUSION integration in video games is evolving and becoming more sophisticated - those who get there early and 13 / REFERENCES invest real time and resources in the space stand to benefit greatly. B / Gamers have power Beware. Gamers are welcoming of advertising so long as it adds to the gameplay experience (by heightening the realism) or provides them with tangible rewards. But

the gaming industry / references / p.49 13 / pages 49-51 JARGON / LINKS / REFERENCES / CHAPTERS / 13.01 / Specialist Gaming Agencies 13.04 / In-Game Networks 13.07 / Blogs & Further Reading 01 / AKQA / www.akqa.com Double Fusion / www.doublefusion.com Games Biz / www.gamesbiz.net SUMMARY ARC Worldwide / www.arcww.com Greystripe / www.greystripe.com Gamasutra / www.gamasutra.com 02 / Barbarian Group / www.barbariangroup.com IGA Worldwide / www.igaworldwide.com Game Developers Conference 2007 / INTRO Denuo / www.denuo.com Massive Incorporated / www.gdconf.com 03 / TECHNOLOGY Electric Sheep / www.electricsheepcompany.com www.massiveincorporated.com Kotaku / www.kotaku.com 04 / Leo Burnett Worldwide / www.leoburnett.com Nexgen Wars / www.nexgenwars.com ADVERTISING Millions Of Us / www.millionsofus.com 13.05 / Media Planners/Research Companies Persuasive Games / www.persuasivegames.com R/GA / www.rga.com Bunnyfoot / www.bunnyfoot.com 05 / Pocket Gamer / www.pocketgamer.co.uk LANDSCAPE Rivers Run Red / www.riversrunred.com The Future Laboratory / Think Geek / www.thinkgeek.com 06 / Saatchi & Saatchi, LA / www.saatchila.com www.thefuturelaboratory.com Watercooler Games / CONSUMERS Juniper Research / www.juniperresearch.com Tribal DDB / www.tribalddb.com www.watercoolergames.org 07 / Mindshare Interaction / MARKETING 13.02 / Developers www.mindshareinteraction.com 13.08 / Jargon 08 / Activision / www.activision.com Nielsen Entertainment / www.neilsenmedia.com BUSINESS 3G: Third-generation technology. Generally Atari / www.atari.com NPD Group / www.npd.com pertains to mobile phone and PDA devices; 09 / DISRUPTION Blitz Games / www.blitzgames.com Yankee Group / www.yankeegroup.com specifically, the ability to facilitate transfers of Electronic Arts / www.ea.com voice data and other information (such as Internet, 10 / FACT Fuel Industries / www.fuelindustries.com 13.06 / MMORPGS/Social Worlds email, GPS, etc) simultaneously. Funcom / www.funcom.com Anarchy Online / www.anarchy-online.com 11 / ARG: Alternate reality games. These defy FUTURE Linden Labs / www.lindenlabs.com Habbo Hotel / www.haboohotel.com traditional platforms by working across multiple 12 / Sulake Corporation / www.sulake.com Second Life / www.secondlife.com forms of media and utilising direct-reach techniques CONCLUSION Second Life Liberation Army / Ubisoft / www.ubi.com such as email, IM and text messages to blur the 13 / slla.blogspot.com lines between fictionalised and real-world realities. REFERENCES 13.03 / Game Consoles There / www.there.com Blu-Ray: A popular standard in the high definition Nintendo Wii / www.wii.com Virtual Worlds Review / DVD market. Boasts 10x the data capacity of Nintendo DS / www.nintendo.com/systemds www.virtualworldsreview.com regular DVDs, as well as improved audio and Sony PlayStation 3 / uk.playstation.com/ps3 War Of Warcraft / www.worldofwarcraft.com visual fidelity. Blu-Ray's main competitor is known Sony PSP / www.yourpsp.com Lord of the Rings Online / lotro.turbine.com as HD-DVD. Microsoft Xbox 360 / www.xbox.com

the gaming industry / references / p.50 13 / page 50 JARGON / LINKS / REFERENCES / CHAPTERS / Consoles: Home-based (ie. non-portable) 01 / hardware dedicated exclusively to gaming. Popular SUMMARY consoles of the past include the Atari 2600, 02 / Nintendo Entertainment System and PlayStation 2. INTRO Dynamic advertising: Advertising delivered by a 03 / TECHNOLOGY game advertising network to a designated virtual space in real time over a broadband connection. 04 / ADVERTISING Flash: A popular programming language, owned 05 / by Adobe. Frequent applications include graphical LANDSCAPE website interfaces, streaming video and game 06 / design. CONSUMERS 07 / MMO / MMORPG: A Massively Multiplayer Online MARKETING Roleplaying Game; online environments that 08 / depend on the real time interaction of as many as BUSINESS millions of players at once. 09 / DISRUPTION Seventh-generation: A blanket term used to refer to the Nintendo Wii, Xbox 360 and Sony 10 / PlayStation 3 consoles. FACT 11 / Shockwave: Another popular programming FUTURE language, also owned by Adobe. Now used 12 / primarily to create rich game content. CONCLUSION 13 / Spyware: Functioning software with the hidden REFERENCES effect of harvesting private information about the host console/computer without user's consent.

the gaming industry / credits / p.51 16 / page 51 CREDITS This report was produced by Contagious CHAPTERS / Series Editor / Paul Kemp-Robertson 01 / Written by / Mark Pytlik SUMMARY Additional Research / Giacomo Bracci, Josh Kemp 02 / Edited by / Jess Greenwood, Emily Hare INTRO Design / Dean Dorat / www.deandorat.com 03 / TECHNOLOGY Contagious 04 / 45 Foubert's Place ADVERTISING London, W1F 7QH 05 / T:+44 (0)207 575 1981 LANDSCAPE www.contagiousmagazine.com 06 / Contact / hello@contagiousmagazine.com CONSUMERS 07 / Published by Xtreme Information MARKETING Xtreme Information is the market leader in the provision of media 08 / Intelligence and competitive advertising monitoring from around BUSINESS the world. 09 / DISRUPTION Xtreme works with the majority of FTSE 100 and Fortune 500 10 / multinational companies, and with every major advertising and FACT media agency. The company is backed by leading US media investors, Veronis Suhler Stevenson (www.vss.com). 11 / FUTURE t: +44 (0) 20 7575 1800 12 / CONCLUSION www.xtremeinformation.com 13 / REFERENCES No parts of this publication may be reproduced, copied or transmitted in any form or by any means stored in any information storage or retrieval system without the publisher’s written permission. Where source material has been reproduced the copyright remains the property of the copyright owner and material may not be reproduced in any form whatsoever without the owner’s prior consent.

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