In Game Advertising

Topics: Advertising, Marketing, Video game Pages: 9 (3197 words) Published: November 29, 2013
Yale Wolman
11/28/13
Applications Paper
In Game Advertising: The Future of Advertisements

Types of In Game Advertisements
In game advertisement companies are given a choice as to what kind of advertisements they would like to put out in their video games. There are two types of advertisements to choose from: static and dynamic. Static advertisements are fixed placements at launch that stay after the release indefinitely. These advertisements are best used for brands that are never changing such as Lays, Coke and So What is important to note about static advertisements is they do not rely on Internet, which is good for consistency but bad if the initial advertisement is not done correctly. If this is the case, the result is a game recall, which is devastating to the bank accounts of gaming companies. The other form of advertising, dynamic advertisements, update with the internet/game. While this form of advertising keeps the game somewhat up to date, it is hard technologically to keep these updates current. An advantage of dynamic advertising is that it allows companies to collect and measure advertisement data on consumers. They can then take this data and give it to gaming companies so they can decide which ads work and which ones do not.

Characteristics, resources, and potentials of direct or indirect competitors for In Game Advertising
The video game advertising market's main competitors stem from print, film, and television advertisements. Unlike print and TV advertisements, however, a video game advertiser does not know how much exposure their advertisement will get with a placement. People may think that because of this question of exposure that video game advertisements are less successful than television ads, but this has proved to be the opposite. Hall & Partners Research is a marketing research company and recently conducted a study to see the success of in game advertisements based on Microsoft’s video game advertisement company Massive. Through their study then found that in game advertisements sees brand recall at 56% versus TV which was at 32% and online/print advertisements at 17% and 18%, respectively. This can be attributed to the fact that television advertisements only run for a maximum of sixty seconds while video game advertisements exceed three hundred seconds.

Not all is good and well for video game advertisements. Unlike their competitors, video game advertisement companies don’t really know what they can expect. Sure they can research what video games sell to whom, but there is no way of tracking it like movies, television or print. Despite this, Entertainment Software Association, video games number one trade association, reported that 68% of households play video games on an average of eight hours per week. Of these gamers, 60% are male while 40% are female. What’s even more interesting is the rise in gaming amongst the baby boomer generation. According to ESA, 25% of US adults over fifty years old play video games. With the wide range of ages amongst gamers these days, advertisers are given an opportunity to appeal to a large number of people through a medium that, unlike TV, has yet to be overrun by advertisements. Characteristics of the target market

When video game advertisers are deciding what advertisements to put where, they must first understand the market. The video game industry is a booming one as consumers spent approximately $20.77 billion on video games, hardware and accessories in 2012. (ESA).  Of these consumers, about half of them fall within the 18-49 year old demographic with, as aforementioned, 60% being male and 40% being female. In addition to the demographic it is important for advertisers to note that advertisements are not limited to a game console. In fact, according to ESA, 55% of consumers play video games on their phones in addition to an Xbox; play station, Wii, computer, etc. These games, often referred to as “cross platform games”, are the...

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