In-Game Advertising

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In-Game Advertising

  1. 1. In Game Advertising Roman Feygenberg & Adam Fay
  2. 2. Thesis: Advertising in Video Games, although underdeveloped at the present, is the next frontier for advertising. In-game advertising has massive potential for increasing revenue on consumer products and effecting the minds of consumers.
  3. 3. Advertising History <ul><li>Ancient Greece & Rome </li></ul><ul><ul><li>Word of mouth </li></ul></ul><ul><ul><ul><li>Orators & town criers </li></ul></ul></ul><ul><ul><li>Lost & found posters </li></ul></ul><ul><li>Egypt </li></ul><ul><ul><li>Papyrus used to create sales messages </li></ul></ul><ul><li>17 th Century England </li></ul><ul><ul><li>Printed Ads in Newspapers </li></ul></ul><ul><ul><ul><li>Used to promote books. </li></ul></ul></ul><ul><li>19 th Century America </li></ul><ul><ul><li>Sears Catalogue, VW ads etc. </li></ul></ul>
  4. 4. 7 Generations of Video Games <ul><li>1 st Generation (Early 70’s) </li></ul><ul><ul><li>Pong </li></ul></ul><ul><li>2 nd Generation (Mid to late 70’s) </li></ul><ul><ul><li>Atari 2600 </li></ul></ul><ul><li>3 rd Generation (Early 80’s) </li></ul><ul><ul><li>Super Mario Bros. </li></ul></ul>
  5. 5. 7 Generations of Video Games <ul><li>4 th Generation 1987-1995 </li></ul><ul><ul><li>16bit PC Engine Graphics </li></ul></ul><ul><ul><li>Sega Genesis/SNES Rivalry </li></ul></ul><ul><li>85 MILLION CONSOLES SOLD </li></ul><ul><li>5 th Generation (The 3-D Transition) 1996-1999 </li></ul><ul><ul><li>N64 (64-bit) vs. PS1 32-bit) </li></ul></ul><ul><ul><li>First time graphics didn’t play a role in deciding what system to buy. </li></ul></ul><ul><ul><li>N64 games were more expensive but had better graphics. </li></ul></ul><ul><ul><li>142 MILLION CONSOLES SOLD </li></ul></ul>
  6. 6. 7 Generations of Video Games <ul><li>6 th Generation (128 Bit Era) 1999-2005 </li></ul><ul><ul><li>Dreamcast, Gamecube, PS2, & Xbox </li></ul></ul><ul><ul><li>First internet Connection </li></ul></ul><ul><ul><ul><li>First possibility for changing content </li></ul></ul></ul><ul><ul><li>OVER 150 MILLION CONSOLES SOLD </li></ul></ul>
  7. 7. 7 th Generation <ul><li>Enough information to predict that 7 th Generation game console’s will make the biggest profit yet. </li></ul>340,000 Nov. 17 th 2006 PS3 600,000 Nov. 19 th 2006 Wii 7.7 million Nov. 23 rd 2005 Xbox 360 Sold Release Date Console
  8. 8. When do advertisements & games cross? <ul><li>Today </li></ul><ul><ul><li>Game Consoles finally connect to the internet for live feeds of information. </li></ul></ul><ul><ul><li>With a prediction of over 160 Million Consoles to be sold in 7 th generation games, live information (advertising, news, etc) can be sent to over 160 million people. </li></ul></ul>
  9. 9. Reasons for Ads in Games <ul><li>108 million gamers over 13 years old in U.S. </li></ul><ul><li>$10 billion+ made from games last year </li></ul><ul><ul><li>Made more money then movie box office </li></ul></ul>
  10. 10. Reasons for Ads in Games cont. <ul><li>T.V. watching from ages 18-34 down 12%, gaming up 20% </li></ul><ul><li>Gamer can spend 10-200 hours to complete single game </li></ul><ul><ul><li>Top selling game sells about 5 million copies </li></ul></ul><ul><ul><ul><li>Has potential for 1 billion hours of eyeball time on screen </li></ul></ul></ul>
  11. 11. Video Games and Gender <ul><li>Video Games mostly associated with men </li></ul><ul><li>Nearly 40% gamers are female </li></ul><ul><li>Men play 7.6 hours per week, women play 7.4 (on average) </li></ul><ul><li>Can advertise to both sexes in games for maximum effectiveness </li></ul>
  12. 12. Gamer Statistics <ul><li>Core Gamers: </li></ul><ul><ul><li>68% male, 32% female, median age 26 plays console & PC games </li></ul></ul><ul><li>Casual Gamer: </li></ul><ul><ul><li>50% male, 50% female, median age 36 plays online games </li></ul></ul><ul><li>Mobile Gamer: </li></ul><ul><ul><li>36% male, 64% female, median age 31 plays phone & PDA games </li></ul></ul>
  13. 13. Why In-Game ads work <ul><li>Unlike T.V. commercial viewing </li></ul><ul><ul><li>Video games immerse player in world </li></ul></ul><ul><li>Exposes player to many images at once, ads included </li></ul><ul><ul><li>Constantly alert making player likely to mentally digest ads </li></ul></ul><ul><li>Most gamers like ads in games </li></ul><ul><ul><li>Gives game sense of realism </li></ul></ul>
  14. 14. Gamer’s statistics with In-Game Ad
  15. 15. How advertising affects gamers? <ul><li>Companies try to make gamers look at ads subconsciously </li></ul><ul><ul><li>Ads can’t be annoying or intrusive </li></ul></ul><ul><li>If blended into game, gamer almost appreciate them </li></ul><ul><ul><li>Blatant ads have opposite effects </li></ul></ul><ul><ul><ul><li>Makes gamer mad at company for making it so obvious. </li></ul></ul></ul>
  16. 16. A Well Placed Advertisement
  17. 17. A Poorly Placed Advertisement
  18. 18. Growing Environments in Games <ul><li>Games using bigger and bigger worlds </li></ul><ul><ul><li>Making more venues in game for ads </li></ul></ul><ul><li>The “Grand Theft Auto” series utilizes its large world: </li></ul>
  19. 19. Advertising Companies/Strategies <ul><li>Main companies include: IGN Entertainment, Massive Interactive, Engage Inc. </li></ul><ul><li>Strategy is to asses demographic </li></ul><ul><ul><li>What they’re selling, and who they are selling to </li></ul></ul><ul><li>Figure out how to place product well </li></ul><ul><ul><li>Calculate maximum time for seeing ad, while not being intrusive </li></ul></ul><ul><li>Very difficult to figure out product income from in game ad </li></ul><ul><ul><li>Need to be careful with investing money in game </li></ul></ul><ul><ul><ul><li>Underdeveloped strategy at present </li></ul></ul></ul>
  20. 20. Plans & Strategies for Advertisers <ul><li>Massive Interactive: </li></ul><ul><li>Contract with EA (Electronic Arts) to put a series of ads in games for X-box 360 and PC </li></ul><ul><li>Contract with Toyota to find ways to put 2007 Yaris in games </li></ul><ul><li>Engage’s basic plan for in game ad: </li></ul>
  21. 21. Discussion <ul><li>Do you think in game advertising is effective? Why or why not? </li></ul><ul><li>Would you buy a video game if the advertising increased greatly, but the price dropped? </li></ul><ul><li>Under what circumstances would you not buy a game with injected advertisements? </li></ul><ul><li>Do you think that in-game advertising will have an effect on gamer’s consumer habits? </li></ul><ul><li>Do you think today’s new technology will bring a positive or negative effect to advertising? Why? </li></ul>
  22. 22. Bibliography <ul><li>http://www.cbsnews.com/stories/2005/06/04/tech/gamecore/main699689.shtml </li></ul><ul><li>http://gomeler.com/2006/11/08/advertising-and-the-video-game/ </li></ul><ul><li>http:// www.clickz.com/showPage.html?page =3607036 </li></ul><ul><li>  http://arstechnica.com/journals/thumbs.ars/2006/1/10/2449 </li></ul><ul><li>  http://www.massiveincorporated.com/index.htm </li></ul><ul><li>  http://www.cbsnews.com/stories/2005/06/04/tech/gamecore/main699689.shtml </li></ul><ul><li>http://www.engageadvertising.com/ </li></ul><ul><li>http://www.massiveincorporated.com/ </li></ul><ul><li>http://en.wikipedia.org/wiki/History_of_computer_and_video_games </li></ul>

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