Wolf Tracking

Following the ever-evolving media landscape, where consumers rule.
 

Inserting the message where we used to insert quarters

Recently, news surfaced of Google’s negotiations to acquire Adscape Media, a firm that places ads in video games. While the concept of Google finding new places to distribute ads is nothing new, the fact that the internet’s 800-pound gorilla is jumping into the in-game business along with Microsoft’s recently-acquired Massive, Inc. shows that the space is a viable means of reaching the heavily sought-after young male demographic, as gamers shun more traditional media.

All three home consoles that comprise the current generation are always connected to the internet via a broadband connection or wifi, and “sleep” when their owners aren’t playing instead of shutting completely off. They can all accept dynamic ad inventory remotely, at the will of hardware manufacturers and software developers. But the burning question remains, “does in-game really work?”

Rules of engagement

The key to in-game ad placement is context. In some cases, advertising can actually enhance the realism of a game. For instance, a real-life baseball stadium just looks odd without signage around the outfield walls. However, there is a subtle art to in-game placement, just like ad buying in any other medium. Throwing a pair of Nike shoes into Blizzard’s swords-and-sorcery megahit World of Warcraft is shameless interruption. Mishandling an in-game placement is a lot like getting busted for a flog- a vocal, connected audience feels wronged by the brand, and will do everything in their power to make their displeasure known.

Burger King in Fight Night

The truth is, it’s been rough going thus far for advertisers in winning over gamers. While in-game advertising is still a fledgling practice, early response from the hard-core gamers shows that marketers need a lot of work when it comes to building seamless experiences for everyone involved. The overwhelming sentiment is, “why should there be advertisements in a game I already paid $50 for?”

The industry needs its own Jack Valenti to champion the practice, and warm gamers up to it. With development costs north of $20 million per game, developers can only afford to take more risks on innovative titles that might not smash Madden’s sales records if they can count on an additional revenue stream besides retail sales. Breakout original hits like the offbeat Katamri Damacy and rocker-wish-fulfillment game Guitar Hero have captured more press, and wallets, than expected. Variety is the spice of life, after all, and this industry needs plenty of it to remain the fastest growing entertainment medium in the world.

Making the Connection

When done right, in-game has the potential to deliver an unprecedented level of engagement and brand stickiness. Far beyond mere product placement, audiences connect with the characters, stories and worlds inside games on the same level as a really good book.

Let’s take the all-time best selling game, Super Mario Brothers, for example. At one point, the mustachioed plumber hero was the most recognizable children’s icon in the world- even beating out Mickey Mouse. You’d be hard pressed to find someone between the ages of 20 and 35 that hasn’t at least played the original Super Mario a few times- it’s my generation’s Sergeant Pepper’s. Just imagine the brand equity if our dear old Nintendo Entertainment Systems had been able to serve up, “Thank you Mario, but our princess is at Match.com” at the end of every level.

In-game advertising shows a ton of promise, but we have yet to see anyone really capitalize on it. It will be interesting to see how Google, along with more entrenched players like Massive and Eyeblaster, fare this year in winning over audiences and legitimizing in-game as an advertising practice. Game on.

 

February 9th, 2007 by Rich Gallagher Posted in Consumers, Technology

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