| Since AdWords was launched in 2001, | | | | businesses. Anyone familiar with |
| Google has expanded to image ads, video | | | | internet advertising can see the |
| ads, and print ads, and has frequently | | | | potential for history to repeat itself. |
| been rumored to be entering radio and | | | | Way back in 1996, long before Overture |
| television. While many think that | | | | (now Yahoo! Search Marketing) and Google |
| television ads (ala Spot Runner) could | | | | AdWords, a company called DoubleClick |
| be Google's next major move, they may be | | | | pioneered website advertising. Their |
| neglecting a potentially larger | | | | downfall, however, was that they |
| opportunity: in-game video game | | | | required a formal sales contract, |
| advertising. | | | | limiting their potential client base to |
| Earlier this year Massive Incorporated, | | | | only large companies. Overture and |
| a video game advertising network, | | | | AdWords made it easy for the small |
| announced a landmark deal with Major | | | | advertiser and small site owner to |
| League Baseball and 2K Sports to provide | | | | participate in their ad networks, |
| dynamic advertising in the popular video | | | | essentially opening their service to |
| game Major League Baseball 2K6. | | | | anyone on the web. Several years later, |
| According to their press release, | | | | one would think that Google is keeping a |
| "Massive's Network and technology allow | | | | watchful eye on what's going on over at |
| MLB Advanced Media and 2K Sports titles | | | | Massive Incorporated. Massive may be |
| to leverage dynamic advertising for | | | | the first to enter the market, but it's |
| ever-fresh brand messaging in their | | | | hard to ignore the fact that the small |
| games, mirroring the rapidly changing | | | | business owner remains shut out. Could |
| and expanding advertising opportunities | | | | Google make Massive the next |
| in the live action sports industry." | | | | DoubleClick? |
| Why Should Google Care? | | | | How Would Google Do It |
| The Entertainment Software Association | | | | There's no doubt that with the best |
| put U.S. sales of video game hardware | | | | programmers in the world Google is |
| and software at $7.3 billion back in | | | | capable of developing and improving upon |
| 2004, a figure that rivals Hollywood box | | | | the technology that Massive has. It's |
| office revenue. In-game video game | | | | also not hard to imagine advertisers |
| advertising is nothing new for the | | | | paying per thousand impressions (PPM) |
| booming game industry - large companies | | | | for their text or image ads to be shown |
| have been buying static advertisements | | | | in specific games, much like they do now |
| in games for years. What is new is the | | | | for specific sites. The tough part for |
| expansion of online gaming into the | | | | Google, however, would be the |
| mainstream. Once reserved for only PC | | | | distribution of those ads. |
| Gamers, console gamers have now | | | | As opposed to signing up websites to |
| discovered a whole new world of | | | | display their ads by copying some code |
| competition over a broadband connection. | | | | on to their site, Google would have to |
| In a recent interview with | | | | work with game programmers throughout |
| TechNewsWorld, EA's John Schappert, who | | | | the development process. This would be |
| oversees the largest interactive game | | | | much more time consuming and would be a |
| studio in the world, was asked about | | | | much larger risk for Google. In the |
| in-game advertising: "In-game ad | | | | same way that Massive signed the |
| integration is a growing business where | | | | contract with 2K, Google would have to |
| we see both advertisers and consumers | | | | sign large contracts with game |
| looking for more. It's an additional | | | | developers and work with them for |
| revenue stream that is still small, but | | | | several months to integrate their ads. |
| growing. There's the potential for | | | | This enforces the fact that the main |
| scalability in this area with | | | | difference between what happened with |
| dynamically-served ads. It's still in | | | | DoubleClick and what could happen with |
| the early stages [in terms of] how | | | | video games is that it would probably be |
| in-game ads will grow in significance." | | | | more work for Google to distribute their |
| Starting with Microsoft's Xbox and | | | | ads over multiple channels (i.e. more |
| Sony's PS2, and continuing into the next | | | | games). Since each game is programmed |
| generation of online gaming with | | | | differently, there is no game equivalent |
| Microsoft's Xbox 360, Nintendo's Wii, | | | | to the JavaScript used in all AdSense |
| and Sony's PS3, it has become a virtual | | | | ads. Every game would need to be |
| certainty that nearly all gamers will be | | | | tailored to Google's ad network |
| playing while connected to a broadband | | | | individually. Difficult: yes. |
| connection. With that broadband | | | | Impossible for Google: no way. |
| connection comes an advertising | | | | When Will They Do It? |
| opportunity that's hard to ignore. | | | | In my opinion it's not a matter of if, |
| Is History Repeating Itself? | | | | it's a matter of when. The potential |
| The potential flaw in what Massive | | | | revenue from the gaming industry is too |
| Incorporated does is that their ad | | | | big for Google to ignore. Oh, and if |
| network still only includes the large | | | | you still aren't convinced, consider |
| advertisers. Massive's website gives no | | | | this: Microsoft, one of Google's main |
| specific information regarding how to | | | | competitors, also produces the Xbox 360. |
| purchase advertising, only mentioning | | | | If Microsoft decided to integrate their |
| that "blue-chip" advertisers can work | | | | newly launched adCenter into Xbox games, |
| with their "veteran" sales team to start | | | | would it really surprise anyone if |
| an account. I think it's safe to say | | | | Google countered by announcing a deal |
| that small businesses aren't their | | | | with Sony or Nintendo to integrate |
| target market. So while they are | | | | in-game dynamic advertising for the PS3 |
| implementing dynamic ads, those ads are | | | | or the Wii? |
| still only affordable to larger | | | | |