Videogames have become a media force on par with the television and motion picture industries. This year will see the number of intensive console and PC gamers in the U.S. grow to 40 million, according to Jupiter Research, and by 2009 that number will reach 62 million. Knowledge Networks/SRI found games now account for 15 percent of teen males' media intake; and an AOL Games study found a huge contingent (43 percent) of dedicated female gamers. Measurement firms are taking note: Nielsen Entertainment recently began measuring video game ad exposure, and has partnered with Activision to provide standardized metrics on gamer demographics and behavior.
While no independent studies have proven ad effectiveness in the gaming environment, the survey from Nielsen and Activision (the first to emerge from their partnership) reports more than a quarter of male game players recall ads from the last game they played. And informal research suggests gamers don't reject advertising that is incorporated thoughtfully into game play -- and they may even feel it enhances the experience. At a recent panel hosted by New York ad club 212, Electronic Arts SVP of Global Publishing Erick Hachenburg shared results from an EA survey that looked at this issue. The game developer gauged user reactions to the incorporation of a Honda SUV into the action of a snowboarding game (players earned points for jumping through the interior of the vehicle). Of those surveyed, 97 percent recalled the brand, 90 percent recalled where they encountered the ad, and 60 percent said it added to the game.
Further, Hachenburg said the value proposition posed by advertising in games is only beginning to dawn on brands, which are used to licensing their products to game producers. That's changing, he said, with an increasing number of companies willing to pay to have products appear in a game.
How they do it is largely uncharted territory, though a loose framework of ad and product placement types has begun to emerge. Jupiter Research' s senior analyst Gary Stein cites three creative approaches that appear to cover most of what's being tried.
"One is the billboard, that's the window dressing; another is [when an ad is] somehow integrated into the play itself; the third is when it's a part of the storyline. For example, you can buy a branded tire after you've earned a certain number of points," he said. "There's a sense that those three should be three tiers of spending."
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