IN-GAME ADVERTISING A NEW WAY TO REACH CUSTOMERS
As the computer and video game playing population expands and diversifies, in-game advertisements and advergames are expanding as well. According to statistics from Nielsen Media Research, $75 million was spent on this new way to reach potential customers in 2006. Nielsen estimates this figure will increase 14-fold by 2010, to $1 billion.
In-game advertising is grouped into two categories: static and dynamic. Static ads first premiered in the 1980s and were the first example of in-game advertisements. These unchanging ads consisted of virtual billboards or in-game product placements. Anheuser-Busch, Inc. and Adidas Ltd. included static ads in Bally Midway's "Tapper" in 1983 and Moby Game's "FIFA's International Soccer" 10 years later.
In 2002, South Beach Beverage Company (SoBe) paid Ubisoft Entertainment to have the main character in "Tom Clancy’s Splinter Cell: Double Agent" reach for a SoBe drink when he got thirsty with the hope that gamers would do the same.
Many of today’s in-game ad campaigns fall into the second category, dynamic advertising. Unlike static ads, dynamic ads can be altered remotely by an advertising agency, allowing for specific geographic locations or time-sensitive product launches. Irrational Games’ SWAT 4, which was released in 2005, featured dynamic in-game ads by Massive Incorporated publicizing upcoming television shows.
Another resource available to marketers in the video game arena is advergaming, the practice of commissioning free or low cost video games to advertise a company’s product. According to Jupiter Media Metrix Research, 50 percent of recipients who receive a free advergame will play it for an average of 25 minutes.
Toyota Corporation released a free online advergame for Xbox 360 to build awareness among 20-somethings about the company’s new Yaris. Nissan Motor Company Ltd. and Mazda Motor Corporation also created games to promote new vehicle models. In 2006, Burger King produced and sold several games featuring the company mascot, "The King." The fast-food chain reportedly sold 3.5 million copies of the $3.99 games.
Today, most in-game ads and advergames are aimed at hardcore gamers, males ages 18-34, and support the automotive, food and beverage, apparel and lifestyle industries' efforts to reach this key demographic. However, in response to the growth of gaming overall, experts expect to see further expansion of these efforts in the coming years in both products advertised and demographics reached.
EMBASSY OF SWEDEN HOSTS CONFERENCE ON SERIOUS GAMES
Academia, corporations and issue advocates increasingly view video games as an effective medium for educating and communicating ideas. The Embassy of Sweden and the Swedish Trade Council sought to encourage this trend, known as "serious games," by hosting the "Conference on Serious Games for Engaging Youth: Innovative Approaches Reaching Out of the Classroom" on March 17th in Washington, DC.
Ben Sawyer, president of the technology development firm Digitalmill, served as keynote speaker and conference moderator. Sawyer gained recognition for co-founding the Serious Games Initiative, the grassroots organization leading the serious games movement. In his remarks, Sawyer offered an overview of the still emerging genre, emphasizing the extent to which commercial video games and serious video games have become indistinguishable.
Following Sawyer, three industry executives from Sweden discussed their respective efforts to engage youth directly inside the classroom. In separate presentations, the trio agreed that serious games have the potential to make a significant contribution to society, but cautioned that developers must understand the situational context, such as the unique needs of teachers, to achieve that potential.
The subject then turned to engaging youth in world issues, with a panel discussing how serious games can build awareness beyond the basic lessons that students learn in school. The UN World Food Programme’s "Food Force," which UN officials designed to educate children about world hunger, served as a primary example.
The afternoon concluded with presentations about the ways in which game technologies, systems and designs will next merge with "real life." The ideas differed, but the panelists agreed that commercial technologies will play a key role in furthering the serious games genre. Overall, the conference showed that serious games are successful vehicles for engaging a new generation, teaching important lessons and introducing issues to new audiences.
ESA FOUNDATION SUPPORTS AMERICA’S YOUTH
Since its launch in 2000, the ESA Foundation has supported programs and opportunities making a difference in the quality of life, health, and welfare of American youth. The Foundation is fully funded by proceeds from its annual fundraiser, "A Nite to Unite – for Kids," and sales of its limited-edition charity game pack, which is available during the holiday season. The organization has raised more than $7.8 million in the past eight years for a variety of philanthropic initiatives.
Recently the ESA Foundation announced a new initiative that will provide $45,000 in scholarships for women and minorities pursuing careers in video game development. Entertainment software is one of the fastest growing industries in the U.S. economy and a lucrative career path. The ESA hopes this new program will help create the next generation of video game developers and designers.
The program provides resources to students who plan to continue their education in fields supporting video game development, including graphic design, computer science, animation or programming, digital entertainment or software engineering. Scholarships are offered each year for full-time study at accredited four-year colleges and universities.
The success of the industry and student interest prompted more than 200 colleges, universities, and technical schools in the U.S. to offer programs and courses in video game design.
The Foundation plans to award 15 scholarships of $3,000 each to students for the 2008-09 academic year. Women and minorities pursuing game studies can apply to the program until April 15, 2008. For more information about the scholarships and the ESA Foundation visit www.theESA.com/foundation. |
In the News
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3.26.2008 — On campus, video games move from dorm room to classroom – Alan Scher Zagier, The Associated Press
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3.26.2008 — Grandma, grandpa get owned by Illinois' failed gaming law – Ben Kuchera, Ars Technica
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3.22.2008 — Taking Play Seriously at the Public Library With Young Video Gamers – Seth Schiesel, New York Times
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3.21.2008 — Casual games look to ad-supported 'TV model' – Paul Hyman, The Hollywood Reporter
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3.18.2008 — Video Games Versus a U.S. "Recession" – Matt Peckham, PC World
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3.18.2008 — Online Games by the Hundreds, With Tie-Ins – Brian Stelter, New York Times
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3.18.2008 — Cut back on games? Readers say no way – Kristin Kalning, MSNBC
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3.17.2008 — Play the video games of life, researcher advises – Lilly Rockwell, Austin American-Statesman
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3.11.2008 — Wii gets seniors into the healing game – Paul R. Kopenkoskey, The Grand Rapids Press
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3.10.2008 — Wi-Fi and kids: Parental controls beyond the PC – Dory Devlin, Yahoo! Tech
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3.6.2008 — Cooperative games get casual players involved – Ryan Kim, San Francisco Chronicle
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3.6.2008 — High school students learn video game design – Kira Millage, The Bellingham Herald
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3.6.2008 — Study: In-Game Ads Proving More Effective than Traditional Ads – David Radd, GameDaily BIZ
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3.3.2008 — Wii habilitation: Physical therapists use video games with patients – Nanci Bompey, Asheville Citizen Times
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3.3.2008 — Tough competition for video-gaming jobs – Carrie Kir, San Francisco Chronicle
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3.1.2008 — Amateurs realize video game dreams – Alex Pham, Los Angeles Times
Latest News Releases
Quote of the Month
"What we're seeing is that in addition to simply helping bring kids into the library in the first place, games... (are having a broader effect on players, and they) have the potential to be a great teaching tool. If a kid takes a test and fails, that's it. But in a game, if you fail you get to take what you've learned and try again."
— Jack Martin, New York Public Library official to The New York Times regarding the library’s video game initiative
Statistic of the Month
According to a report by the Apply Group, the majority of corporations, learning suppliers and established serious games suppliers foresee ‘learning games’ not only being adopted but becoming mainstream by 2012. Also a resounding 100% of corporations surveyed see the value of using games-based learning within their organizations.
Did You KNOW??
The advergaming industry is expected to generate more than $312 million in revenue by 2009, according to research conducted by a Boston research firm, the Yankee Group.
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