It feel like I’m repeating myself again, but this is a subject that really interest me. Thou still not totally convinced that In-game advertising will be a “white knight” saving the game industry I’m open to be proven wrong (well not totally, and I wont admit it 
). I’ve written post before explaining my criticisms for in-game ads, two articles on GamedailyBiz made my little thinking brains start again.
The most interesting article was the “My Turn” by Double Fusion Chief executive where he outlines how the in-game ads business have evolved and what needs to happened in the future. He talks about the second phase, maybe 2.0 of in-game ads? His basically arguing for and try to sell the future potential for in-game ads, which is understandable, its his job. Yes, in-game ads are here to stay, no denying that, but I would like to state some problems I see.
Today’s games and in-game ads are more directed and suited for big companies, those who posses huge marketing budgets and big brands. The medium today is not suited for the majority of companies. Maybe this is just because the business is so young, and the prices to join this trend will decrease. Otherwise I believe this will be viewed as “exclusive” marketing medium. But still, the medium demands high costs for implementation. Every game is a new experience and different from previous and other games. This require the help from companies like Double Fusion or Massive Incorp. to make this possible. For the games sake I like this, but if you view it from a advertisers view its another story. The concept is the same as the old “way” of marketing, to hire outside companies to help you with your marketing. I like to view myself as a “new media”-marketer, and thing the old marketing thinking if outdated. Probably because I work with Search engine- and affiliate marketing but these are successful marketing channels that I believe the in-game ads business could learn a lot from.
The in-game ads business today is all about big budgets and uncertain ROI. In order for this business to grow I think they need to be influenced from affiliate marketing. The in-game advertising companies today are the equivalence of affiliate companies like Tradedoubler. On the web its all about big volumes and low margins, the whole Long Tail-theory. As mentioned before, today the in-game ads biz feels more like a exclusive club for big corporations. The medium is controlled by a few players, both on the console side and in-game advertising side. The companies are bound to go throw these to be able to use the game medium.
One of biggest advantages with online marketing like Search and Affiliate marketing, are the possibilities to in real-time see the ROI. Also, the companies control over their own marketing. With Google Adwords the companies decide budget, audience and time online for their ads. The changes made happen instantly. Also the focus differentiate, were in-game advertising according to me is more about brand building.
A big difference here is the “state” of phase of the wanted audience. People surfing the web are more in a state of buying, but when people play games, they want to be entertained, escape reality and just have a great time. Here’s a big difference according to me. Online, most people search for something, maybe information or were to buy a certain product. They actively SEARCH for it, and want to find it. When people play games, they want to be relaxed and not in the same phase as people searching online. The in-game advertising model is just the same old “push” model used by TV, radio and classical web banners. They try to push their message on the consumer, a model I’m not really a fan of. We get bombarded by advertising messages everywhere today, and now even in our games? Again, this may work to build a brand or raise brand value, but will it really sell products? One argument I can buy is the rise of Around-game advertising, were the ads isn’t in the games, but around it. A great example is Battlefield:Heroes, where they will make some of their revenue from banners and ads on the games site. This approach won’t disturb the in-game experience and is easier to track results from.
Even if these in-game ads companies claim they can track how many time an ads has been viewed, to me this says nothing. As the video in my Awareness Test post showed, a great example on our lack of attention when we are focused.
As stated before, its also limited by game genres. For some games this can work, and is necessary to create a reality atmosphere, sport games for example. Another quote I reacted to was:
Why is in-game advertising important to the industry?
The easy answer is the monetary one – that in-game advertising allows game companies of all sorts to add additional, high net profit dollars, to the bottom line. This is not a new fact, although the amounts of money being generated for gaming companies continues to increase whether you look at a per-user or a per-box metric.
When he mention “gaming companies”, I wonder who he’s referring to, developers or publishers? Later in the article he states that in order for this business to work, it has to be a part of the development early on. My fear here is if this will impact how publishers choice to invest in game development. If they’re only willing to focus on games that can include in-game advertising? Only safe projects, even more in the future than today. Still I’m not anti-in-game advertising completely, I just think the buzz around it is bigger than it deserves today. I’m willing to accepted the concept if it works more like a complement instead of a phenomenon that will change the direction on game development and innovation. I don’t want every game company in the future to pursue game ideas were they can squeeze in some in-game advertising. Innovation, new ideas, great gameplay and a fun experience most always be the nr. 1 priority!
0 Comments.