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By Bally Chohan

What is In-Game Advertising?

Put simply, in-game advertising is serving ads into a
game environment, but the nuances vary
dramatically. For some 3D games, in-game ads appear
as posters or billboards in the virtual world. For online
2D casual games, in-game ads can replace an object in
the game with a branded product, or even serve a
branded quest into the game for a week long run.
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The World of Gaming
With advancing technology, videogames have
become increasingly interactive, common and
addicting.
Videogames are now accessible in our homes, at
work, and on our cell phones

The internet allows players to interact with other
players around the world


Industry Facts
72% of American households play computer or video games
The average game player age is 37
58% of players are male and 42% are female
19% of most frequent game players pay to play online
games
55% of gamers play games on their phones or handheld
device
In 2010, consumers spent $25.1 billion on the games
industry
Gamers spend on average, 8 hours a week playing games


Sales Growth

Types of In-Game Advertising

In-Game ads can either be “dynamic” or “static.”
Static ads stay the same every time the game is played. They
are typically hard-coded during the development and appear
as billboard or props, like vending machines.
Dynamic ads can be changed over the internet for online
players.

Main Categories Featured in IGA

Automotive
Beverages
Fast Food Companies

Significance for Advertisers
Videogame industry is huge and it keeps growing
DFC, a research company that specializes in the video
game industry, predicts that in-game advertising
spending will double from $3.1B to $7.2B by 2016
53% of players are ages 18-49, so if this your target in a
campaign, in-game advertising could be very
beneficial


In-Game Advertising: Example 1

McDonald’s Campaign


Advantages of In-Game Advertising

Easy to target a particular market accordingly with a
videogame genre
Quickly reaches consumers, ex: (Farmville, which launched
on June 19th 2009, reached 50 million users by October 1st
of the same year)
Effective in increasing brand awareness, and especially
effective at priming audiences for engagements and
sponsorships within associated gaming environments

Advantages Continued
According to Microsoft’s Massive (an in-game ad
serving company for Xbox & PC), in-game advertising
has been found to increase purchase intent by 24%,
brand recommendation by 23% and, overall brand
rating by 32%

In-game advertising also has a greater advantage over
TV since, TV spots only feature 30-60 seconds of
commercials & a typical in-game advertisement
exceeds 300 seconds!

Advantages Continued

New medium to reach consumers
Ads are unavoidable in a virtual environment
High reach due to the growing popularity of video
games

Disadvantages of In-Game
Advertising
High game repetition creates a negative brand
attitude
Difficult to plug a product on an alien planet in the
year 2553 in Halo, or do the same in a fictional
medieval world filled with dragons and orcs in Skyrim



Obama’s 2008 campaign


Academic Research: Journal of
Advertising
The prominence of a brand placement has a positive
impact on brand recall
Brand attitude became more negative as the number
of game repetition increased



Coca-Cola Polar Race


Tips for when to use In-Game
Advertising
Looking to reach an 18-34 year old audience
Want to avoid advertising clutter
When there is a contextual relationship with your
brand & the game

Do’s of In-Game Advertising

Do keep your message creative, simple &
straightforward
Do make sure message is relevant & tailored to
audience
Do use the most vibrant colors of your brand palette,
but avoid making it too bold & out of keeping with
the brand environment which, will spoil the
experience

Don'ts of In-Game Advertising

Don’t use messaging that is inappropriate (Gamers
are quick to tweet, blog or post about brands that
annoy them)
Don’t attempt to use IGA as a cheap medium but,
instead an impactful cut-through


Future of In-Game Advertising

Most likely, games will start being formatted by
building the game around the brand’s social media
plan
Games will start using content that unlocks based on
user engagement (ex: FB page which will reveal a
game code).

Discussion Questions

How many people here play video games?
Have you ever noticed in-game advertisements while playing?
What category of in-game advertisement have you seen the most?
& in which type of game?
In your opinion, do you believe in-game advertising is effective?
If so, do you find it more effective than TV advertising? And why?
Do you find IGA annoying, pleasant or irrelevant when playing a
video game?
Has an IGA ever influenced your purchasing decision?
Do you feel that more companies will start advertising through
games?


References
Initiative. (2012). In-Game Advertising: Gaming is a
global phenomenon and presents huge
opportunities for advertisers. 1-9.
Skim, m. (2010). In-Game Advertising Project: Static
vs. Dynamic IGA's and Concerns.
http://is300project.blogspot.com/2010/11/staticvs- dynamic-igas-and-concerns.html


References Continued
Cauberghe, V., & De Pelsmacker, P. (2010).
Advergames. Journal of Advertising, 39(1), 05-18.
Tassi, P. (2011, Sept. 14). Analyst says video game
advertising will double by 2016. Retrieved from
http://www.forbes.com/sites/insertcoin/
2011/09/14/analyst-says-video-game-advertisingwill-double-by-2016/


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