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In-game ads to reach $1 billion in spending by 2014
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Even though we’re not quite half-way through 2009, some marketing and research analysts are already putting together outlines for possible advertising spending habits within video games by 2014.
Adam Smith, Futures Director at GroupM, commented in the press release regarding the research data, saying, “Games are proven recession-beaters with an ad-funded online model that actually works. There are many ways in which advertising can help evolve business models for video games and we have only just begun to explore that potential. Given gaming is now a mainstream leisure interest, in-game deserves the same consideration as mobile and social media.”
The “recession-beater” statement isn’t entirely true, just to clarify things. According to EL33T Online, during April gaming took a 17% drop in sales and is finally starting to show signs of economic-affectation. The marketing report by Screen Digest suggesting that in-game ad spending will exponentially increase by 2014 certainly seems optimistic despite many online ad agencies scaling back during these times. This is not to discount that the research may include information regarding a turn-around in the economy and the re-emerging necessity of reaching consumers with superfluous advertising.
“Dynamic in-game advertising offers brands the same accountability as other digital platforms but in a more controlled environment than social display media and through a more standardized value chain than mobile advertising.” Says Screen Digest Senior Analyst for Advertising, Vincent Letang, “Like online video pre-rolls, in-game advertising fills a gap in online branding, bringing familiar formats such as virtual billboards and TV ads into the gaming experience.”
Some of you may remember the popularized in-game ads presented by Barack Obama during the 2008 election campaign inside select Xbox Live supported video games. This was just a small sampling of what Screen Digest believes will be a larger, more mainstream method for reaching consumers in the coming years. Mainly because the demography that games cater toward are considered one of the hardest to reach with effective advertisements in other mediums.
Nevertheless, 2012 will be here faster than 2014, and if mainstream advertisers, as well as both Democrats and Republicans take in-game ads seriously during the 2012 Presidential campaign, then I suppose Screen Digest’s report could certainly hold true for estimated in-game ad spending in 2014.
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