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Bally Chohan
www.ballychohan.com
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.
www.ballychohan.com
By Bally Chohan

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
www.ballychohan.com
By Bally Chohan

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
www.ballychohan.com
Sales Growth

By Bally Chohan

www.ballychohan.com
By Bally Chohan

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.
www.ballychohan.com
By Bally Chohan

Main Categories Featured in IGA
∗ Automotive
∗ Beverages
∗ Fast Food Companies
By Bally Chohan

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
www.ballychohan.com
By Bally Chohan

In-Game Advertising: Example 1
∗ McDonald’s Campaign

www.ballychohan.com
By Bally Chohan

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 1 st
of the same year)
∗ Effective in increasing brand awareness, and especially
effective at priming audiences for engagements and
sponsorships within associated gaming environments
www.ballychohan.com
By Bally Chohan

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!

www.ballychohan.com
By Bally Chohan

Advantages Continued

∗ New medium to reach consumers
∗ Ads are unavoidable in a virtual environment
∗ High reach due to the growing popularity of video
games
www.ballychohan.com
Disadvantages of In-Game
By Bally Chohan
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

www.ballychohan.com
By Bally Chohan

In-Game Advertising: Example 2
Obama’s 2008 campaign

www.ballychohan.com

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Bally Chohan UK

  • 2. 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. www.ballychohan.com
  • 3. By Bally Chohan 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 www.ballychohan.com
  • 4. By Bally Chohan 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 www.ballychohan.com
  • 5. Sales Growth By Bally Chohan www.ballychohan.com
  • 6. By Bally Chohan 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. www.ballychohan.com
  • 7. By Bally Chohan Main Categories Featured in IGA ∗ Automotive ∗ Beverages ∗ Fast Food Companies
  • 8. By Bally Chohan 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 www.ballychohan.com
  • 9. By Bally Chohan In-Game Advertising: Example 1 ∗ McDonald’s Campaign www.ballychohan.com
  • 10. By Bally Chohan 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 1 st of the same year) ∗ Effective in increasing brand awareness, and especially effective at priming audiences for engagements and sponsorships within associated gaming environments www.ballychohan.com
  • 11. By Bally Chohan 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! www.ballychohan.com
  • 12. By Bally Chohan Advantages Continued ∗ New medium to reach consumers ∗ Ads are unavoidable in a virtual environment ∗ High reach due to the growing popularity of video games www.ballychohan.com
  • 13. Disadvantages of In-Game By Bally Chohan 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 www.ballychohan.com
  • 14. By Bally Chohan In-Game Advertising: Example 2 Obama’s 2008 campaign www.ballychohan.com