PyroContexts: In-Game Advertising Service

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A marketing plan for a new in-game advertising service that takes advantage of semantic web concepts.

A marketing plan for a new in-game advertising service that takes advantage of semantic web concepts.

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  • Ability for anyone to advertise in a game by specifying the context clues which will trigger the placement of the ad or feature in the game.For game publishers, allow total control over where ads can appear in the game and under what conditions.
  • In 2005, the market for advertising to those gamers inside their virtual worlds totaled about $56 million. With the introduction of next-generation gaming consoles and new metrics to measure both--Boston-based technology research and consulting firm Yankee Group projects the in-game market will explode to $733 million by 2010. (Newsweek)Nearly 90 percent of all U.S. companies polled in a new study will use part of their marketing budgets to advertise in new media like video games or virtual communities.


  • 1. IN-GAME ADVERTISING PYROCONTEXTS Marketing Plan Ibrahim Shafi Semantic Contexts, LLC
  • 2. PYROCONTEXTS  Goal: To be the premier in-game advertising network for advertisers seeking real time feedback and targeting information.
  • 3. MARKETING OBJECTIVES  Gain market share over the next year from industry leaders in larger network audiences  Offer a more precise and a lower cost ad targeting system using an automated auction to sell ad space.  Quickly and efficiently deliver targeted advertising into network-based games  Increase brand awareness from 0 percent to 20 percent.  Increase channel members to build network.
  • 4. Unlimited Product Placement Potential
  • 7. PRODUCT – VALUE TO THE CUSTOMER 1. Dynamic, Flexible  Most “advertising” is static 2. Broad Reach  Unique integrations by title 3. Accountable  Measurement by sell-thru 4. Easy to integrate  Game teams pushing back 5. Agencies drive  Agencies limited in role value
  • 8. PRODUCT - OFFERING Broker Campaigns Dynamic In- Product game Placement in Advertising Games • PLC – Introduction • Focus on educating the customer about the benefits and value of our products. • Increase brand awareness • NPD – Design Phase
  • 9. TONY HAWK PRO SKATER (1999)
  • 10. CRAZY TAXI (2000)
  • 11. TRUE CRIME (2003)
  • 14. NBA 2K6 (2005)
  • 15. FIGHT NIGHT 3 (2006) Burger King Achievement 100 Beat The BK Invitational Fight. Dodge Achievement 100 Beat the Dodge sponsored fight EA SPORTS Achievement 150 Beat any EA SPORTS sponsored fight ESPN FNF Achievement 150 Beat any ESPN Friday Night Fight event ESPN PPV Achievement 150 Beat any ESPN Pay Per View fight event ESPN WNF Achievement Beat any ESPN Wednesday Night Fight 150 event Everlast Achievement 100 Beat the Everlast sponsored fight Under Armour Achievement 100 Beat the Under Armour sponsored fight
  • 16. PRODUCT - BRANDING  Strategy - Build utilitarian value  Ability for anyone to advertise in a video game.  For game publishers, allow total control over where ads can appear.  Use Brand Extensions for new products
  • 17.  Online Auction Bidding  Audience profiles  Characteristics of the game environment  The price they’re willing to pay per impression  Overall budget  Competitors  Value Pricing Objective: Maximize quantity of customers served  Price sensitivity
  • 18. GENERAL ENVIRONMENT Marketing Mix (4Ps) Product Promotion Price Place Industry Value to Value from Market Customers Customers -Increasingly fragmented media advertising channels. -Digital age: Consumers are moving to new media. Advertisers -At least 132 million gamers are following. 13 years and older in the U.S. -The most coveted consumers – men aged 18 to 34. -Income from in-game advertising -Young men play an average to offset development costs and of 12.5 hours of video games increase profits. each week compared to less than 10 spent in front of the - Can provide highly segmented TV. marketing and detailed tracking.
  • 19. INDUSTRY GROWTH  Brand placement in games is forecasted to as much as $1 billion by 2010” 300 250 % Increase 200 In Game Advertising 150 Revenue Advergaming 100 Revenue 50 0 2003 2005 2007 + Source: Nielsen Entertainment Graph Data: The Yankee Group report: "Marketers Look to Video Games to Drive Their Messages Home" forecast
  • 20. TARGET AUDIENCE DIVERSITY  "If the goal is to reach [young] males, there is a lot of waste in buying network television,“  Nielsen Entertainment Senior Vice-President Michael Dowling. Source:” Rated M For Mad Ave” 2/27/06
  • 21. ENVIRONMENTAL ANALYSIS Growing number of video game players Game sales on the rise Increased youth spending power Traditional advertising less effective Technology improving and getting cheaper ESRB ratings, self-regulating industry Today’s digital age
  • 22. COMPANY ANALYSIS - SWOT Strengths Weaknesses • Technical expertise • Unknown company • computer code • Cost of data-acquisition could be high • Innovative software application to cater • Limited resources & funding ads to each specific users • Utilizing software to tie in market data Opportunities Threats • Low Competitors’ software sophistication • Some established competitors • Highly coveted demographic – Male mid • Large powerful companies entering the 30’s. field • More children making purchasing • Government regulation decisions • International markets • Independent game developers
  • 23. COMPANY FIT Fit w/ Fit w/ Fit w/ Competitor Customers Context s Performance    Goals & Objectives    Capabilities    Strategy & Tactics    Organization    Implementation    Sustainability   
  • 24. CUSTOMER ANALYSIS Key • Blue Chip Advertisers through Ad Agencies Segments • Direct advertisers, mostly small companies Perceived • Access to key demographics – 18-34 yr old males Value • Real time metrics on ad effectiveness Derived • More precise ad targeting to increase impact and brand awareness through
  • 25. CUSTOMER ANALYSIS – MARKET SIZE “Which marketing channels/efforts are you currently using, piloting, or expecting to pilot within the next 12 months?” Total Currently using Piloting or expecting to pilot No plans to use at all adoption Email marketing 83% 10% 6% 94% Search marketing 64% 16% 21% 79% Behavioral targeting 38% 36% 27% 73% Contextual targeting 37% 32% 31% 69% Rich media emails 36% 31% 33% 67% Rich media display ads 45% 22% 33% 67% Blogs/social networks 13% 38% 49% 51% RSS 10% 37% 53% 47% Mobile marketing 11% 32% 57% 43% Advergames/in-game advertising 13% 15% 72% 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% In-game Ad Market = $56M Source: Forrester’s Q4 2005 Marketer Benchmark Survey $56M in 2005 Projected $732M in 2010 Yankee Group, Mar. 06
  • 26. COMPETITORS  IGA Worldwide  Massive Incorporated Competitive advantages: Massive and IGA Worldwide sign exclusive agreements with online developers such as Activision to place ads into online games. These agreements serve as a virtual monopoly against all other competition. In addition, these competitors can claim that they have set the benchmark for advertising in these industries. Weaknesses: The in-game advertising is only accessible to large blue-chip advertisers such as Coca-Cola and GM. Smaller companies do not have a low cost way to get on the network.
  • 27. MARKETING STRATEGY (STP) SEGMENTATION Advertising Direct Advertisers Agencies AKQA – Coca Cola, Nike, Microsoft Auto Industry BBDO – Anheuser-Busch, Visa, Pepsi Fast food chains BBH – Audi, Levi’s, British Airways Large retailers, department stores Bernstein-Rein – McDonald’s, Yahoo, Wal-Mart Soft Drinks Industry JWT – Kellog, Unilever, T Rowe Price Beer Industry Leo Burnett – Procter & Gamble Athletic Products The Martin Agency- UPS, GEICO, NASCAR, Miller Entertainment Industry McCann Erickson- Mastercard, Sony, Intel Electronics, Video Games Airline Industry Smaller local regional businesses With limited advertising budget
  • 28. TARGETING Direct Advertisers Companies that interested in the are willing to bid online 18-34 male for advertising audience space Smaller companies that Companies that can’t afford need constant or national marketing fast update of campaigns advertising message •Local or regional businesses
  • 29. POSITIONING  PyroContexts delivers advertisements to a quality audience with the highest level of accuracy and timeliness among all in- game advertising companies because our proprietary bidding technology, and video game network better identifies, at any given moment, the final customer (video game player) by age, location, demographics, behavioristic and psychographic measures.  In the mind of the advertisers, PyroContexts should be the in- video company with the technological edge in advertising delivery.
  • 30. PLACE - DISTRIBUTION STRATEGY Channel length: Channel width: DIRECT EXCLUSIVE • Our Network to • Proprietary access video technology, games bidding advertising linked to video games.
  • 31. PLACE – DISTRIBUTION STRATEGY PyroContexts Video Game Players VG VG VG Advertisers Channel PYROCONTEXTS Partners VG VG VG
  • 32. PROMOTION Generate Gaming • Consumer Electronics Show Network: Targeted PR • Expand company awareness among developers Campaign Create Client • Explain Software innovations Relationships: • Visit Advertisers Dedicated Sales Team Establish our brand: • Billboards • Magazines Traditional ads in • Online advertising Major US Cities Generate hype: “Blogger” appeal
  • 33. QUESTIONS?