Since When Does Mario Drink Sierra Mist?
Sony is planning to open up its video game advertising platform. In a move that will allow major in-game-ad-serving companies to sell ads on games made for Playstation 3, Sony is altering the exponentially growing in-game advertising marketplace. Unlike competitor Microsoft Xbox 360, whose advertising is brokered exclusively through subsidiary Massive Entertainment, Sony has opted for a more open philosophy that allows for more competition. Companies such as Adscape, Double Fusion, and IGA will be able to strike deals with the publishers that create games such as Ubisoft and Electronic Arts. Although some advertising companies might have hoped to strike exclusive deals to sell in-game PS3 ads, many analysts suggest that the competition will benefit that in-game advertising market in the long run.
The model for video games ads is still in its advertising infancy, a situation similar to what is happening on the Internet. Even though media planners haven’t quite figured out how to utilize or measure advertising within video games (although Sony signed a deal with Nielson over the summer to measure in-game exposures), video game advertising is easily worth over 400 million dollars with an estimated 23% annual growth rate over the next five years.
There are still many questions associated with In-game advertising. How effective is it? Can ads within video games become intrusive? If it can, how much is too much? How much should companies be paying to advertise in games? Is in-game advertising even worthwhile? What demographics are being reached?
Nonetheless, the successful media planners must be innovative and willing to conquer new territory. In this writer’s opinion, in-game advertising holds a wealth of untapped advertising possibilities. It must be noted that media plans are usually inclined to use more traditional, easily measured mediums like Print, TV, and Radio. Thus, newer technologies like video games and the Internet represent a new frontier in advertising. Both are rapidly expanding in use and provide overwhelming potential to reach consumers that couldn’t previously be reached.
Article titled "Game Ad Boom Looms as Sony Opens Up PS3"
(http://adage.com/digital/article?articleid=125318)
posted by Drew Burton @ 5:31 PM
5 Comments
5 Comments:
In game advertising has become more and more popular. Usually the ads are quite subliminal. For example, if in the game they are driving, you may see a billboard for Axe body spray. Is Sony planning to do subtle ads like this, or do they plan to have actual advertisements interrupt the game? I think this is a big issue and if the second one is the case, gamers won't be happy. On the business side, however, it is a great untapped outlet that has a lot of potential.
When people first starting seeing television commercials more often than usual they were upset because of the interruptions. Now, it's expected that every 15-20 minutes there will be a commercial break. It's annoying, yeah, but we've become tolerant to it. I still think that Sony should stick to more subliminal advertisements in their games, however, because even if gamers become tolerant to the constant advertisements, being the game system who is constantly in your face with deals and promotions is probably not the position you want to be in. Eventually, all of these game systems will have given in to the pressure of spot advertising in games and it would be wise for Sony to be the relief in the mix.
Video game advertising seems like the next logoical step in non-traditional marketing. As irritating as it might be to video game users, the amount of views advertising like this will get is unbelievable. The pass along rate in video games is huge, they're something that people use as a group, an excellent advertising vehicle. Although some may not always notice the advertising within video games, it is sutley encouraging video game users to become aware of the products being advertised in them.
As a guy in my early 20's, I have had a fair amount of stick time behind a video game console or two. Thinking back as far as I can I feel there has always been a subliminal factor in video games. California games from nes days was specifically sponsored by companies like Milton Bradley, Ocean Pacific, and Santa Cruz. I think companies who produce produces for the real world that relate to the video game version will always enjoy a little more success due to a fan base that is already familiar with their product and more likely to support it. Putting in ads during the game will most certainly turn off players. Nothing would make someone want to turn off a game and never play it again like a 30 second spot between levels. I feel that sponsoring games would be extremely successful. If you look at the Mountain Dew Game Fuel that was created for the release of Halo3, there were many of my friends that went out and bought it just because of the advertising. By the same token, on the other side there are events they play online in Halo3 that are sponsored by outside companies. Recently, GM's Hummer division sponsored a tournament where the winner got a brand new Hummer H3. This type of idea where they game is brought to you by some entity would allow further advertising without spoiling the game.
Great post -- and a topic that's obviously of some interest to you classmates. I see the in-game market as very similar to product placement at this stage, as Mandy noted. But I think that's about to change. I don't see it being a big leap to interstitial ads between levels of a game at this point. And from what I've seen, kids are very patient with these kinds of interruptions -- after years of the Disney Channel and Nickolodeon, they actually expect them.
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