Friday, April 14, 2006

News: IGA To Publish Dynamic Ads in Mobile Phones


image: Moconews

"In-Game Advertising Goes Mobile", press release, Exit Games, March 21, 2006 (pdf):

IGA Worldwide and Exit Games today announced a partnership to enable the world’s first mobile in-game advertising solution. Neutron, Exit Games’ leading multi-player solution for mobile phones, will be integrated with IGA Worldwide’s ad-serving platform the Radial Network, to enable advertisers to reach consumers via mobile games.

Using Neutron, game publishers can create in-game advertising that can be dynamically updated (DIGA) for mobile phone games running Java, BREW or Adobe Flash Lite. By using the Radial Network advertisers will be able to update, change, geo-target and receive detailed reports on their mobile campaigns."

Burger King Considers XBox Games


Image: Kotaku.com

"Burger King To Sell Xbox 360 Games?" Kotaku.com, April 10, 2006:

"Hamburger flipper Burger King is considering a promotion that offers 3 exclusive BK-branded games. Each would feature their own characters (in this case, the actual Burger King) in “popular” genres (fighting, action and racing). The action game is apparently similar to Halo, while the fighter combines Street Fighter and Mortal Kombat. Just tack on a “with hamburgers,” and you get the drift."

Thursday, April 13, 2006

Advertising in Games Conference, Data Points

It's been a month since my last post here, and it was a month spent on getting some (very little) actual writing done, and on working on other unrelated projects. Now that the thesis presentation is a week away and the defence is on May 5, it's crunch time.

Anyway, I went to the Advertising in Games conference in NYC on Wednesday, thinking I would pick up interesting stuff for my work (special thanks to the organizers for giving me the press pass in recognition of my blog publishing career). As it usually happens, the event was rich in networking and less rich on unique content, but below are a few shots of the most interesting presentations (taking snapshots of the screen is much easier than writing the things down).


Massive showed off their work for True Crime: New York City for PC. This is a billboard for Navy on the game's Times Square. Somewhat bizzare, considering the violent nature of the game, but then the target audience must be right - boys with lots of built-up testosterone and an urge to break things.



Speaking of boys, most of the games are purchased by women (moms) for boys, says NPD.


NDP said their studies show that while most of the games are purchased for boys (males), there is a lot of pass-over secondary audience in different demos once the game arrives at home.


Some usage studies from Nielsen. Turns out Hispanics are the biggest spenders when it comes to games ($56.1 a month). In other news, on average gamers play 7.8 times a week (that is, more than once a day) to the tune of 12 hours total a week.


Nielsen also says that in the male 18-34 demographic, games beat some networks for prime-time viewership.


Some big revenue estimates were thrown around. Massive quotes Jupiter saying that revenue from in-game advertising will reach $1 billion by 2010. According to Nielsen, the revenue will reach $2.5 billion by 2013. I missed it, but apparently Mitch Davis said that "in-game ad spending would land somewhere between $1.6 billion and $1.8 billion in the U.S. by 2010, accounting for roughly 3 percent of total media spending" (Ad Week).



Some of the publishers in the Massive's network.



Other industry stats (can't tell from whose presentation): gamers spend, on average, 41.7 hours playing a game they last purchased (ESA 2005). Also, 94% of American Consumers aged 12-21 own a gaming device, according to Forrester (don't know whether all those dusty NES consoles in the closets count).



NPD made an interesting point that in-game advertising will become an increasingly attractive source of revenue for publishers given the flat game sales for the past few years.


A very useful chart tracking install base for the current generation of console devices. Again, you'll see that a lot of devices are used by more than one person.


Massive also said they now were capable of geotargeting and displaying ads in different languages depending on players' locations. A recent example was a European promo for V for Vendetta.

Tuesday, March 14, 2006

Scratchpad: Gorillaz in Habbo Hotel

Aleks Krotoski, "Gorillaz Checking In to Habbo Hotel", Guardian Blog, Aug.24, 2005

"Give it up for Damon Albarn and his cartoon Gorillaz gang; they’re embracing the cyberspace vibe by appearing in the US version of the teeny-friendly, mega virtual world hit Habbo Hotel today to give residents both a personal appearance and a live performance."

Monday, March 13, 2006

Scratchpad: IGA Interview with Gamecloud

John "JCal" Callaham, "IGA Worldwide Interview", March 13, 2006

Quotes by IGA's CEO Justin Townsend:

  • However, with the introduction of the IGA WW proprietary ad serving network, Radial, we enable advertisers to target millions of engaged consumers across a wide range of platforms and game genres whilst they play.


  • As we have stated above, ad brands need to follow consumers – as an example, the best selling game of 2004, NFL Madden, generated some 400 million eyeball hours, whilst the best selling TV program of 2004, The Sopranos, generated some 160 million eyeball hours. More recently, Halo 2 is reported to have clocked over 600m hours of online play via Xbox Live.


  • The process of integrating the SDK is minimal, taking roughly 15 man hours. [...] Contrary to popular belief, its not preferable to have hundreds of billboards pasted over every surface! Not only does that become intrusive to the game, its also less effective for the advertiser. Effectively what we are doing is replicating where you would expect to see adverts in real life and replicating that, with some optimization for the way different games are played and different environments are negotiated.


  • We already have a fully operational network serving over 600,000 unique gamers a month.


  • We are already working on some major technological innovations, such as in snowboarding game Stoked Rider where we are dynamically interchanging geometric branded objects [...]

Scratchpad: Advertising in Virtual Worlds

Joyce Schwarz, "Bold New Opportunities in Virtual Worlds." iMedia Connection, March 10, 2006.

Quotes:

The greatest opportunity for brand expression may just be in the 'solo-branded' Virtual Worlds like Coke Studios, Wells Fargo's "Stagecoach Island," Disney's Virtual Magic Kingdom and Motorola's Mokiworld. But other options like co-branding or develop promotions or sponsorships within other brands' virtual worlds -- like Wal-Mart did in Coke Studios -- are feasible.

What's the big payoff for the brands? One innovator Erik Hauser, founder of San Francisco-based Swivel Media, provides a powerful answer -- engagement.

Swivel Media recommends its clients allocate six to seven figures to create one of these experiences.

Digital Deadwood is a great example of how branded virtual worlds enhance tourism promotion.

Friday, March 10, 2006

Scratchpad: Ben Sherman in Test Drive Unlimited


image: IGN. A screenshot from the upcoming Test Drive Unlimited for Xbox 360.

Eric Pfanner, "On Advertising: Getting in the Game." International Herald Tribune, March 6, 2006:

"In "Test Drive Unlimited," a new video game from Atari, players will get to choose their virtual wheels from a selection that includes Lamborghini, Ferrari and Mercedes. And, unusually for a genre in which car crashes generally count for more than fashion splashes, gamers will also be able to select their on-screen drivers' wardrobes."

"The ability to customize the racers' attire comes courtesy of Ben Sherman, a clothing brand popular among soccer fans in Britain and urban hipsters in America. Realizing that many young men spend more time with their Xboxes, Playstations or Nintendos than their televisions, Ben Sherman joined a growing number of marketers who see video games as a promising new frontier in advertising."

"For Ben Sherman and Atari, which is owned by Infogrames Entertainment of France, the potential audience seemed to intersect so well that it prompted a surreal twist. The partnership will extend beyond the in-game advertising and into a real-world link between the two brands, with Ben Sherman stores installing "pods" where customers will be able to take a spin at the controls of "Test Drive Unlimited." "You can go into the stores in the game, and into the game in the stores," Bartlett said. 'It's all pretty weird.'"

"Analysts estimate that spending on ads in video games could reach $1 billion a year by the end of the decade, up from around $300 million now and little more than $100 million two years ago."

"Gerhard Florin, general manager for international publishing at Electronic Arts, the largest video game publisher, estimates that advertising will eventually account for 5 percent to 10 percent of video game revenue."

"Because the game will allow users to play online, Ben Sherman will be able to update those billboards with changing seasonal displays on the PC version."