15 september 2011
Video games are a hot medium
Video games as an advertising channel are emerging unscathed from the economic downturn, with marketers anticipating that they will ramp up their worldwide spending in and around this space to $7.2 billion by 2016. About three-quarters of that spend is going toward advergames or ads wrapped around games. Globally, game ad revenue will generate $3.1 billion in 2011, per DFC Intelligence's data.
The ads typically appear within the games as billboards, posters or product placements. They also come in the form of pre-game spots or as games developed by brands themselves.
Analysts have always seen in-game advertising as a growth opportunity. In 2009 media firm Group M expected that global market to grow by 2014 to $1 billion, a figure already overtaken.
Young male target group
Marketers have long seen in-game ads as a way to target younger males, so it's no surprise that companies in the fast food, soda, snack, apparel and auto categories have taken advantage of the popularity of sports and racing titles.
Casual games expend the reach
But advertising is expected to go broader as games on Facebook and cellphones command more attention from casual gamers. "Videogames have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population," said DFC analyst Michael Goodman. "Despite this, advertisers continue to underutilize videogames as an advertising vehicle. This is slowly changing as more games go online."
Source: Variety.com
The ads typically appear within the games as billboards, posters or product placements. They also come in the form of pre-game spots or as games developed by brands themselves.Analysts have always seen in-game advertising as a growth opportunity. In 2009 media firm Group M expected that global market to grow by 2014 to $1 billion, a figure already overtaken.
Young male target group
Marketers have long seen in-game ads as a way to target younger males, so it's no surprise that companies in the fast food, soda, snack, apparel and auto categories have taken advantage of the popularity of sports and racing titles.
Casual games expend the reach
But advertising is expected to go broader as games on Facebook and cellphones command more attention from casual gamers. "Videogames have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population," said DFC analyst Michael Goodman. "Despite this, advertisers continue to underutilize videogames as an advertising vehicle. This is slowly changing as more games go online."
Source: Variety.com