So What’s New?

What Potential Does Advergaming Have For Marketers?

Posted in Uncategorized by pmaurer74 on November 27, 2008
Tags: , , ,

image of game from the iPhone Store

image of game from the iPhone Store

First of all, Happy Thanksgiving! I hope this day finds you healthy, happy, and full!

As mobile phone technology grows, the interest in advergaming by marketers is growing as well. Companies and brands are forking over the advertising dollars as fast as they can to capture the hard to reach youthful market through advergames. Many companies are already using this media: Burger King, Dunkin Donuts, and even presidential candidates from this past election. The Barack Obama campaign appeared in some Electronics Arts video games on the XBox 360 where “early voting has begun” billboards and signs appeared in the games.

In-game advertising has increased revenues 200-500% estimating to reach $732 million by 2010. In the near future, the in-game advertising will be in the form of video ads in between segments for trial versions of the game. When the user pays for the games, the ads would be removed.

Game developers have the challenge of placing the sponsored ads in the games without it being too distracting to the players of the game. There is also the issue of the games draining the battery life of people’s mobile phones. However, phone manufacturers such as Apple, Sony, and Google are trying to compensate by offering in-game ad networks on their phones. Since more people are users phones than their computers these days. Advergaming has a promising future for marketers.

Advergaming is not entirely new, however, the first games were sponsored by Chef Boyardee, Coca-Cola, Taco Bell, Gap, Reebok, and Samsung were distributed on floppy disks! Naturally these games are widely accepted by kids and young adults. When polled, gaming came in first over TV and the internet as the most fun entertainment.

It will be interesting to see how this media grows over the next few years and where the technology is heading.

For more reading on the topic of advergaming, please see these articles:

Smartphones Could Fuel Surge in Video Gaming. Beth Snyder Bulik, November 12, 2008

Dunkin’ for Advergaming. Justin Davis, January 16, 2006

Marketers Say They Win With In-Game Ads. Laurie Sullivan, October 20, 2008

Ads to Turn Casual Gaming into Major Revenue Stream. Marketing Vox, April 4, 2007


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