Thursday, February 28, 2008

In-game Advertising

In-game advertising or (IGA) has been a recent phenomenon as video gaming has grown at an unprecedented rate in the last decade. With strong video game sales, companies are looking at video games as a new venue to advertise. According to Massive Incorporated In-game advertising was $56 million in 2005 and is expected to grow up to $2 billion in 2010. Companies look to target both and casual and hardcore video gamers that might not be an avid television or movie viewer. A benefit for companies to have In-game advertising is that most of the time the advertisement is not an annoyance like a television or radio commercial. Therefore, video gamers will have a slightly more positive reaction to the brand. Another benefit, is that companies are able to target a young audience to be loyal to their brand. For example if you are playing a racing game and choose a fast, chances are you would build a connection with the brand of the car that wouldn't have existed with the video game. Examples of In-game advertising are car brands in racing games and shoe brands in sports games.